No Right, No Power, No Claim: Anti-Assignment Provision Voids Claim Trader’s Proof of Claim

October 7, 2019

On September 11, 2019, the Delaware district court affirmed the bankruptcy court’s decision to expunge a proof of claim filed by a claims trader in the Woodbridge Group of Companies, LLC bankruptcy case. The court’s holding was based on three primary legal conclusions: (1) the anti‑assignment provisions in the underlying loan agreements and promissory notes were enforceable under Delaware law; (2) the debtors’ pre-petition breach of the loan agreements did not bar the debtors from…

Restructuring Globalview

Small Business Reorganization Act Signed Into Law—A New Frontier for Small Business Bankruptcies

By Kyle Arendsen

August 27, 2019

On August 26, 2019, President Trump signed the Small Business Reorganization Act (“SBRA”) into law. The SBRA is scheduled to take effect on February 22, 2020. As we previously reported, the SBRA offers small businesses with aggregate liabilities that do not exceed $2,725,625 the opportunity to resolve their outstanding debts through a condensed and price‑conscious chapter 11 bankruptcy proceeding. This new proceeding is to be governed under subchapter V to chapter 11 of…

Restructuring Globalview

Section 363(o) Implications: Bankruptcy Court Denies Debtor’s Request to Disband Consumer Creditors’ Committee

By Kyle Arendsen

June 11, 2019

On May 17, 2019, the Bankruptcy Court for the Southern District of New York announced that the Official Committee of Consumer Creditors (the “Consumer Committee”) appointed in the In re Ditech Holding Corp. bankruptcy case would not be disbanded. Ditech, supported by the ad hoc group of term loan lenders (the “Ad Hoc Group”), had filed a motion requesting that the Consumer Committee be disbanded or alternatively have a limited scope and budget. After receiving…

Restructuring Globalview

The Small Business Reorganization Act Reintroduced: A Way Forward for Small Business Reorganization?

By Kyle Arendsen

April 23, 2019

Last month, Congress reintroduced the Small Business Reorganization Act (“SBRA”), under which a new subchapter V would be added to chapter 11 of the United States Bankruptcy Code. This new subchapter would provide small businesses with aggregate liabilities that do not exceed $2,566,050 with an opportunity to resolve outstanding liabilities through a streamlined and cost‑effective chapter 11 bankruptcy proceeding. The SBRA also offers small business owners the opportunity to preserve their ownership interest in…

Restructuring Globalview

Seventh Circuit Keeps The Door Open After Asset Sale And Limits The Scope of Section 363(m)

By Kyle Arendsen

March 21, 2019

Section 363 of the Bankruptcy Code provides a debtor with the power to sell its assets during the bankruptcy case free and clear of all interests. This permits the debtor to maximize the value of its assets and hence the recovery for creditors. But that is not always the end of the story. In Trinity 83 Development, LLC v. ColFin Midwest Funding, LLC, the Seventh Circuit Court of Appeals faced the issue of whether…

Kyle Arendsen

No Right, No Power, No Claim: Anti-Assignment Provision Voids Claim Trader’s Proof of Claim

Small Business Reorganization Act Signed Into Law—A New Frontier for Small Business Bankruptcies

Section 363(o) Implications: Bankruptcy Court Denies Debtor’s Request to Disband Consumer Creditors’ Committee

The Small Business Reorganization Act Reintroduced: A Way Forward for Small Business Reorganization?

Seventh Circuit Keeps The Door Open After Asset Sale And Limits The Scope of Section 363(m)

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