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Results: 1-10 of 254

Court affirms separate classification, holds artificial impairment not per se impermissible

  • Reed Smith LLP
  • -
  • USA
  • -
  • June 12 2013

In a matter of first impression in the Fifth Circuit, the court affirmed the bankruptcy court’s confirmation of a chapter 11 cramdown plan, holding

Defrauded initial lien holder maintains priority over subsequent innocent lenders

  • Reed Smith LLP
  • -
  • USA
  • -
  • June 12 2013

The court granted summary judgment in favor of a defrauded lender in a lien priority dispute with subsequent third-party lenders. The court

Following Castleton Plaza, competitive bidding required where insider asserts ‘new value’ exception to absolute priority rule

  • Reed Smith LLP
  • -
  • USA
  • -
  • June 12 2013

The court denied confirmation of the debtor’s plan, finding that: (i) the debtor failed to demonstrate that it would be able to obtain financing to

Ninth Circuit joins majority, holds unstayed judgments not ‘bona fide dispute’

  • Reed Smith LLP
  • -
  • USA
  • -
  • June 12 2013

Judgment creditors of Georges Marciano filed an involuntary chapter 11 petition against Marciano, who appealed the state judgments before the petition

Seventh Circuit rules rejection of executory trademark license does not terminate the license, creates a split of authority

  • Reed Smith LLP
  • -
  • USA
  • -
  • June 12 2013

In a matter of first impression in the Seventh Circuit, the court held that a chapter 7 trustee’s rejection of an executory contract did not terminate

Trustee fails to carry burden, court affirms pre-petition transfers to cover check-kiting losses not avoidable preference

  • Reed Smith LLP
  • -
  • USA
  • -
  • June 12 2013

Pre-petition, the debtor engaged in a check-kiting scheme using accounts held at two banks. As a result of the scheme, one of the banks incurred

Bank loses possessory lien following turnover of funds to trustee should have sought adequate protection

  • Reed Smith LLP
  • -
  • USA
  • -
  • June 12 2013

The bank, which held a possessory lien in the deposit account of the debtor, lost its lien when it turned over the funds in the account to the trustee

Exit lenders liable for conversion where distributions contravene credit agreement

  • Reed Smith LLP
  • -
  • USA
  • -
  • June 12 2013

A group of lenders participated in a syndicated loan. When the borrowers filed for bankruptcy, the lenders were forced to buy certain of the

Post-petition lock-down agreement does not equate to impermissible vote solicitation

  • Reed Smith LLP
  • -
  • USA
  • -
  • June 12 2013

After filing its chapter 11 petition, the debtor entered into a Reorganization Support Agreement with certain creditors, which required those

Fourth Circuit is the first to hold absolute priority rule applicable to individual Chapter 11 debtors

  • Reed Smith LLP
  • -
  • USA
  • -
  • June 12 2013

The Court of Appeals for the Fourth Circuit is the first court of appeals to determine whether the absolute priority rule continues to apply to