On August 29, 2016, the Third Circuit released a precedential opinion (the “Opinion”) which opined that a “[redemption] premium, meant to give the lenders the interest yield they expect, [does not] fall away because the full principal amount is now
Delaware Bankruptcy Update
Information on Corporate Bankruptcy Proceedings in Delaware and Throughout the United States
Delaware Bankruptcy Update, published by Fox Rothschild LLP, focuses on developments in bankruptcy law and financial restructuring, particularly within the Delaware jurisdiction. The blog covers topics such as Chapter 11 bankruptcy filings, asset sales through bankruptcy auctions, creditor and debtor rights, bankruptcy litigation, and court rulings affecting bankruptcy practice. It also addresses issues relevant to commercial landlords, creditor committees, trustees, and businesses facing financial distress. The blog provides analysis of significant cases, legislative changes, and procedural aspects of bankruptcy, including discharge orders and civil contempt standards. It serves as a resource for practitioners seeking updates on bankruptcy trends, litigation strategies, and restructuring approaches.
Latest from Delaware Bankruptcy Update - Page 8
American Apparel Files Second Bankruptcy in Just Over a Year
Made-in-the-USA retailer American Apparel, LLC and its affiliated entities (“Debtors”) filed for Chapter 11 bankruptcy protection on Monday, Nov. 14th for the second time in just over a year, colloquially known as the “Chapter 22”. The filing comes just about…
The Intersection of the SCA and Bankruptcy Code
In a lengthy opinion published November 7, 2016, Judge Sontchi of the Delaware Bankruptcy Court provided a thorough analysis of the interaction between the Stored Communications Act (“SCA”) and the Bankruptcy Code. Judge Sontchi’s opinion is available here (the “Opinion”). …
Ordinary Course Defense Examined by the 7th Circuit – Bucketing Analysis Rejected
In the recent decision of Unsecured Creditors Comm. of Sparrer Sausage Co., Inc. v. Jason’s Foods, 826 F.3d 388 (7th Cir. 2016), the Seventh Circuit overturned the bankruptcy court’s application of the “bucketing” method to assess an ordinary-course defense to…
Multi-Case Asbestos Order Provides for Discovery of 2019 Information
On November 8, 2016, Judge Kevin Gross of the Delaware Bankruptcy Court issued an opinion (the “Opinion”) that affects nine different bankruptcy cases. The Opinion was issued in response to the request of Honeywell and Ford for access to asbestos…
Claims Objections Overruled in Seegrid Bankruptcy
On October 27, 2016, Chief Judge Brendan L. Shannon of the Delaware Bankruptcy Court issued an opinion overruling objections to the claims of Seegrid’s former CEO. A copy of the Opinion is available here.
This is a relatively short Opinion…
Interest Payments Do Not Qualify as Protected Settlement Payments Under Section 546(e)
In the decision of Motors Liquidation Co. Avoidance Action Trust v. JPMorgan Chase Bank, N.A. (In re Motors Liquidation Co.), 552 B.R. 253 (Bankr. S.D.N.Y. 2016), the SDNY bankruptcy court held that prepetition interest payments on a term loan did…
Judge Carey Holds that Severance Claim is a Priority Claim
In an 8 page decision dated October 19, 2016, Judge Carey of the Delaware Bankruptcy Court overruled an objection to the reclassification of the claim of a terminated employee. Judge Carey’s opinion is available here (the “Opinion”). This employee (“Mangan”) was a fifteen year veteran…
Sanjel (USA) Inc. – Chapter 15 Creditors May Challenge Reach of Stay in Recognition Order
A recent decision by the United States Bankruptcy Court for the Western District of Texas in In re Sanjel (USA) Inc., et al., Case No. 16-50778-CAG (Bankr. W.D. Tex. July 29, 2016) explains that in a Chapter 15 case, the U.S.…
Lien Stripping in Bankruptcy
On October 11, 2016, Chief Judge Brendan L. Shannon of the Delaware Bankruptcy Court issued a letter ruling in which he opined on the appropriate valuation of a first lien. A copy of the Opinion is available here.
While the…