A pair of recent decisions adds more fuel to the debate over forum shopping by debtors. This time the issue involves application of the Bankruptcy Code’s safe-harbor provision in section 546(e). Conflicting interpretations by the courts in several circuits are
Global Restructuring Watch
Providing updates and commentary on global restructuring and bankruptcy law
Global Restructuring Watch, published by Reed Smith LLP, focuses on legal issues related to corporate restructuring, insolvency, and bankruptcy across multiple jurisdictions. The blog covers topics such as mass redundancies following insolvency, airline insolvency protections, bankruptcy proceedings involving environmental agencies, and the impact of economic disruptions like the COVID-19 pandemic on various industries. It also addresses legal compliance in restructuring scenarios, employee consultation obligations, and government policy responses affecting distressed companies. The content is aimed at providing insights into the legal and regulatory challenges faced by companies undergoing financial distress and restructuring processes globally.
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Court decides to ‘wait and see’ in its refusal to grant an administration order
Rowntree Ventures Ltd v Oak Property Partners Ltd [2016] EWHC 1523 (Ch)
Executive Summary
The High Court recently re-affirmed the discretionary nature of its right to grant an administration order. In this case, the court refused to grant an administration…
Second Circuit Raises a Caution Flag for Sales Free-and-Clear of Claims
The power of a bankruptcy court to authorize the sale of assets “free-and-clear” of liens and any other interests is a powerful tool that is used to realize value from distressed businesses. Indeed, purchasers will occasionally insist that sellers file…
Lehman Court Changes Course on Flip Provisions and Financial Safe Harbors
A Flip on the Flip Clause: New York bankruptcy judge dismisses claims to recover approximately $1 billion that had been distributed to noteholders following commencement of the Lehman Brothers chapter 11 proceedings in September 2008.
To continue reading more about…
German Federal Court Ruling Important for Future Contractual Netting Arrangements
In a decision of 9 June 2016, the German Federal Court of Justice (Bundesgerichtshof, “BGH”) has ruled that the determination of the close-out amount in a netting provision based on the German Master Agreement for Financial Derivatives Transactions (Rahmenvertrag für…
Concerned about a going concern? New standards on accounting standards
Following on from our recent blog post on Ralls Builders Limited (in liquidation) [2016] EWHC 243 (Ch), in which Mr Justice Snowdon discussed the issues around wrongful trading under section 214 of the Insolvency Act 1986 and the quantum of…
Ralls Builders Limited Clarification
In February 2016, Mr Justice Snowden handed down his judgment in the High Court proceedings concerning Ralls Builders Limited (in liquidation) [2016] EWHC 243 (Ch). This matter concerned an application by the liquidators of Ralls Builders Limited (in liquidation) (the…
Modeling the Model Law – what not to do
OGX Petroleo E Gas S.A., Re [2016] EWHC 25 (Ch)
In a recent judgment, Mr Justice Snowden sounded a cautionary note for applicants seeking recognition of a foreign insolvency proceeding under the UNCITRAL Model Law, advising applicants to make full…
To submit or not to submit – questions of jurisdiction
This appeal arose out of the litigation fallout from the Bernard Madoff Ponzi scheme. In the appeal, the Privy Council considered whether, at common law, an agreement to submit to jurisdiction must be express or whether it could be implied…
COMI and get it: international approaches to cross-border insolvencies
In our increasingly global world, cross-border insolvencies have become relatively commonplace. Lehman Brothers and Nortel Networks are just two of the matters where parallel proceedings in multiple jurisdictions were necessary in order to effectively administer the debtors’ estates. Neither the…