Provide the electric service and keep the money: the latest development in bankruptcy law involving payments made to an electric supplier *

USA - August 7 2012
On August 2, 2012, the Court of Appeals for the 5th Circuit issued a decision in Lightfoot v. MXEnergy Electric, Inc. (In re MBS Management Servs., Inc.). No. 11-30553, (5th Cir. Aug. 2, 2012).

Co-authors: Sandy Rizzo.

Curiosity safe on Mars, forward contracts safe under section 546(e) of the Bankruptcy Code *

USA - August 6 2012
As NASA engineers breathe a sigh of relief after the “seven minutes of terror” that was the rover Curiosity’s landing on Mars, recipients of payments under commodity forward contracts can—at least in the Fifth Circuit—rest assured that agreements that meet the basic definition of forward contract contained in section 101(25) of the Bankruptcy Code will be protected from preference liability should their counterparties find themselves in bankruptcy.

Co-authors: William A. Wood III.

Creditors and professionals: take notice if you want to serve on or represent a creditors’ committee in Delaware *

USA - November 10 2010
Last Thursday, a Delaware Bankruptcy Court disqualified two law firms from representing an Official Committee of Unsecured Creditors based on their conduct in soliciting proxies from creditors who were not existing firm clients.

Co-authors: Evan D. Flaschen.