Lehman Bankruptcy Court overrules UST fee objection and reaffirms confirmed plan provision *

USA - March 28 2013
In a recent contested matter in the historic cases, Lehman Brothers Holdings Inc., et al. (the "Debtors"), Case No. 08-13555 (Peck, J.), pending in…

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Eighth Circuit rules trademark license is executory contract in bankruptcy *

USA - October 15 2012
In In re Interstate Bakeries Corporation, ___ F.3d ___ (8th Cir. 2012), the Eighth Circuit Court of Appeals ruled that a perpetual, royalty-free trademark license was an executory contract and therefore subject to assumption or rejection by a bankruptcy debtor.

Co-authors: Anthony V. Lupo, David J. Kozlowski.

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Bankruptcy court validates right of holder to elect Chapter 7 trustee *

USA - August 13 2012
In a recent contested matter in the case Home Valley Bancorp., Inc., Case No. 11-65126-fra7, pending in the US Bankruptcy Court for the District of Oregon, the Bankruptcy Court validated the vote and election of a Chapter 7 trustee candidate by a security holder where (a) the Indenture Trustee for the debt issue declined to exercise its right under the Indenture to vote for a Chapter 7 trustee, (b) the security holder acted openly and actively with respect to the election of its Chapter 7 trustee candidate, and (c) the Indenture Trustee did not object to such actions by the security holder.

Co-authors: Jeffrey N. Rothleder, Andrew I. Silfen.

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Court enforces indenture successor obligor provisions and enjoins sale transaction *

USA - April 17 2012
In a recent case, In re BankAtlantic Bancorp., Inc. Litigation (Del.Ch. February 27, 2012), indenture trustees under multiple indentures of trust, as well as individual holders of trust preferred securities, sued to enforce certain successor obligor provisions that prohibited a bank holding company from selling “all or substantially all” of its assets unless the acquirer assumed the debt.

Co-authors: Andrew I. Silfen, Beth Brownstein.

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Court rejects noteholder’s attempt to circumvent indenture no-action clause *

USA - March 1 2012
In a recent case, RBC Capital Markets, LLC v. Education Loan Trust IV et al., 2011 WL 6152282 (Del. Ch. Dec. 6, 2011), a holder of notes issued under an indenture claimed that the issuer caused the trust to pay excess and unauthorized fees that allegedly reduced the amount of interest payments to the noteholder.

Co-authors: Andrew I. Silfen.

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