A new article consolidates information on the use of chapter 11 by Catholic dioceses. The author is a Penn State law professor, Marie Reilly. The article  is posted in SSRN, Catholic Dioceses in Bankruptcy. Hat tip to Private Law Theory blog for flagging the article. The abstract states: “The Catholic Church is coping with mass tort liability for sexual abuse of children by priests. Since 2004, eighteen Catholic organizations have filed for relief in…
  In July 2017, we wrote about the case of Hamersley Iron Pty Ltd v Forge Group Power Pty Ltd (in liquidation) (receivers and managers appointed)[1], in which the Western Australian Supreme Court held that rights of set off enjoyed by an insolvent company’s contractual counterparties would not apply if the company had granted a security interest over the relevant contractual rights under the Personal Property Securities Act 2009 (PPSA). The decision has…
No one knows for certain what the future will hold for the UK and the remaining EU countries post 29 March 2019 but in the context of cross-border insolvency we do know that if there is a no-deal Brexit, that the Recast Regulation on Insolvency Regulation (EU) 2015/848 will be repealed. So, what does this mean for UK insolvencies with a cross-border element? In simple terms a UK appointment taker will have to apply to the…
Now online is the 1/3 fee petition from Hale  v. State Farm. et al., # 3:12- cv-00660, in the U.S. District Court for the Southern District of Illinois.  As explained in an October 17, 2018 article in LAW360, the suit’s allegations assert thatState Farm “funneled millions into the campaign coffers of a candidate for an open seat on the [Illinois Supreme] court in order to buy his vote to overturn [a prior ruling] — and…
Nearly a year ago, the Italian Parliament passed Law 155/2017 giving the Government twelve months to adopt a root and branch reform of the rules governing business distress and insolvency procedures, taking into account European legislation (EU Regulation 2015/848, Commission Recommendation 2014/135) and the principles of the United Nations Commission on International Trade Law.  On 11 October 2018 the Italian Government issued the long-awaited draft of the legislative decree establishing the new Code for Distress…
In a recent opinion, the U.S. District Court for the Northern District of Texas held that an Equal Employment Opportunity Commission (“EEOC”) action brought against an employer for alleged violations of Title VII of the Civil Rights Act of 1964 is excepted from the automatic stay by 11 U.S.C.§ 362(b)(4) (police and regulatory power exception). The district court held that the whether the claim was excepted from the automatic stay depended upon, whether the…
US federal banking regulations that go into effect next year require certain major financial institutions to ensure that their qualified financial contracts (QFCs), such as swaps and repurchase agreements, are subject to temporary or permanent limitations on counterparties’ legal abilities to exercise default rights in the event that the financial institution becomes subject to a resolution regime as a result of financial distress, such as that which may result from capital or liquidity problems. In…
A recent High Court case (Fairhold Securitisation Limited v Clifden IOM No 1 Ltd) has affirmed that in debt issuances involving a trustee, noteholders have only limited rights to take direct enforcement action.  The case confirmed that: trustees do not need to act on holders’ instructions until holdings have been verified; on receipt of instructions, a trustee is not bound to act until it has had a reasonable time to verify holdings, review instructions,…
By Sarah Anderson Adding publicity to the recent string of security breaches, Gemalto’s Breach Level Index released information on October 9, 2018 stating that for the first half of 2018, approximately 291 records were stolen or exposed every single second.[1]  Gemalto estimates that 945 data breaches led to the release of 4.5 billion data records being compromised worldwide, which increased approximately 133% in the last year.  These data breaches came from varying industries,…