Those words are from Justice Sotomayor’s opinion in the recent decision by the Supreme Court in Wellness International Network, Ltd. v. Sharif, which decision has generated significant press coverage (and blog postings) among bankruptcy practitioners across the country. This author certainly
Restructuring Debt Review
Developments and Trends in Bankruptcy Law
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RadioShack Bankruptcy More Proof that Timing is EVERYTHING
Any business executive worth her salt will admit that timing is everything in business. Launch a product before consumers are ready to try something new or enter a market after the niche is saturated and even the best business plan…
Ponzi Scheme Clawbacks Dealt a Blow by MN Supreme Court Ruling
The Minnesota Supreme Court recently issued an opinion overturning a legal presumption that permitted victims of financial fraud to forego evidentiary requirements under the Minnesota Uniform Fraudulent Transfer Act (MUFTA) in cases involving Ponzi schemes. As a result, the ruling…
RadioShack, a Retail Legend Permanently Stuck in a Different Era, Files Chapter 11
This blogger fondly remembers the RadioShack cassette player/recorder her great-grandmother gave her in the late 1970s. Cutting-edge technology at the time, the gadget allowed traveling musical entertainment and roving recording, a level of freedom that I have maintained through the…
Caesars Begins $10B Fight In Earnest
A cross-jurisdictional fight has broken out between Caesars Entertainment Operating Company (“Caesars”) and three of its second lien noteholders. Following weeks of public disclosure regarding its intent to file a consensual chapter 11 case with the support of its senior…
Wells Fargo Caught in the Crosshairs of the Automatic Stay
By Oren Haker
The Weidenbenners (aka the “Debtors”) had four accounts with Wells Fargo that held $6,923.54 when they filed for chapter 7 protection on March 7, 2014. At the time they filed their petition, they claimed as exempt all of these funds. …
Challenging Insolvency through a Recharacterization Claim
By Oren Haker
An interesting decision from the Bankruptcy Court in the Eastern District of Tennessee shows how a defendant tried to defeat a preference claim by recharacterizing debt on the debtor’s balance sheet as a capital or equity contribution. In Paris v. …
Welcome to the Restructuring Debt Review
By Oren Haker
Welcome to the Restructuring Debt Review (the “RDR”). The RDR blog is devoted to covering legal developments in the areas of troubled businesses, distressed debt and insolvency law. Many of the posts will discuss recent developments under the federal Bankruptcy…
Valuing Assets in Chapter 11 – A Moving Target
By Oren Haker
A recent decision out of the First Circuit Court of Appeals illustrates the importance of the value of the collateral of creditors with fulcrum security, as that value relates to creditors’ rights to pendency interest.
In re SW Boston Hotel …
The Muddy Waters of Claim Classification
By Oren Haker
The chapter 11 case of In re Hyatt out of the Bankruptcy Court for the District of New Mexico illuminates a debtor’s use of claim classification to allocate creditors different recoveries under a liquidating plan. While this debtor was ultimately…