Real Bankruptcy Intel

Your source for Restructuring, Bankruptcy and Insolvency insights

Yesterday, the Supreme Court held in a 9-0 decision that a creditor cannot be held in contempt of court for violating a bankruptcy discharge order if there is a “fair ground of doubt” as to whether the order barred the creditor’s conduct. This is primarily an objective standard, which depends on whether the creditor had a reasonable basis for his position. But subjective intent is still relevant; a creditor who acted in bad faith may deserve…
CNBC yesterday reported on new warnings from Morgan Stanley analysts about the potential for a near-term recession (CNBC: Morgan Stanley says Economy on Recession Watch), including economic indicators that many in the restructuring and bankruptcy industry are closely tracking. Relevant data points discussed include slowing manufacturing activity, notable dips in the U.S. services sector and the flattening of the yield curve.  Notably, some of the data pre-dates the recent re-escalation of trade tensions between U.S.…
Yesterday, in an 8-1 decision, the US Supreme Court held in Mission Product Holdings, Inc. v. Tempnology, LLC1 that under Section 365 of the Bankruptcy Code, a debtor-licensor’s rejection of a trademark license agreement does not terminate the rights of the licensee to continue using the trademark where those rights would otherwise survive the licensor’s breach of the agreement under non-bankruptcy law.2  The Tempnology decision resolves the most significant unanswered question regarding the treatment…
On April 23, 2019, the United States District Court for the Southern District of New York, in fraudulent transfer litigation arising out of the 2007 leveraged buyout of the Tribune Company, ruled on one of the significant issues left unresolved by the US Supreme Court in its Merit Management decision last year (which we addressed in a previous post).  The district court held Tribune’s post-bankruptcy litigation trustee was barred from asserting certain constructive fraudulent transfer claims…