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Results: 1-10 of 309

Delaware Bankruptcy Court decision in SemCrude poses setback to triangular set-off

  • Cadwalader Wickersham & Taft LLP
  • -
  • USA
  • -
  • January 16 2009

The United States Bankruptcy Court for the District of Delaware has ruled that a creditor cannot effect a “triangular” set-off of the amounts owed between it and three affiliated debtors, despite pre-petition contracts that expressly contemplated multiparty set-off

Second Circuit upholds “earmarking” doctrine defense to preference action

  • Cadwalader Wickersham & Taft LLP
  • -
  • USA
  • -
  • February 26 2008

The next time you negotiate a settlement payment with a financially troubled party, you may want to keep in mind an ancient term related to livestock herding: earmarking

Creditor may recover a prepayment penalty in a solvent case even though the penalty is not reasonable under section 506(b) of the Bankruptcy Code

  • Cadwalader Wickersham & Taft LLP
  • -
  • USA
  • -
  • February 26 2008

In UPS Capital Business Credit v. Gencarelli (In re Gencarelli), the First Circuit Court of Appeals addressed the issue of whether a secured creditor is entitled to collect a prepayment penalty from a solvent debtor

Urban Communicators ruling overturned: secured lenders entitled to presumption of post-petition interest at contract rates

  • Cadwalader Wickersham & Taft LLP
  • -
  • USA
  • -
  • January 30 2009

In the March 2008 issue, we discussed a decision from the In re Urban Communicators PCS, Ltd. Partnership case

Recent circuit court equitable subordination decisions emphasize requirement that misconduct result in actual harm to other parties

  • Cadwalader Wickersham & Taft LLP
  • -
  • USA
  • -
  • January 30 2009

In recent opinions, the United States Courts of Appeals for the Fifth and Seventh Circuits have revisited the doctrine of equitable subordination and have underscored the requirement that, before a court can equitably subordinate a creditor's claim, the court must find that other creditors have been harmed by the actions of the creditor

LBO payments for privately-held company not subject to avoidance

  • Cadwalader Wickersham & Taft LLP
  • -
  • USA
  • -
  • January 30 2009

In In re Elrod Holdings Corp., the Bankruptcy Court for the District of Delaware recently considered whether section 546(e) of the Bankruptcy Code operates to protect pre-petition transfers made in exchange for stock of a privately-held company, or is limited to transactions involving publicly traded securities

Continued viability of “earmarking doctrine” defense to preference actions affirmed by Fifth Circuit

  • Cadwalader Wickersham & Taft LLP
  • -
  • USA
  • -
  • January 30 2009

In In re Entringer Bakeries, Inc., the United States Court of Appeals for the Fifth Circuit affirmed the viability of the “earmarking doctrine” as a judicially created defense to a preference action under section 547(b) of the Bankruptcy Code

Bankruptcy court refuses to enforce a restrictive real estate covenant due to unprecedented economic distress

  • Cadwalader Wickersham & Taft LLP
  • -
  • USA
  • -
  • January 30 2009

In In re TOUSA, Inc., the Bankruptcy Court for the Southern District of Florida considered whether to enforce a restrictive real estate covenant that set a price floor for the sale of house lots in a residential development

Debtor should consider whether creditor has set-off rights before rejecting executory contracts

  • Cadwalader Wickersham & Taft LLP
  • -
  • USA
  • -
  • April 25 2008

In CDI Trust v. U.S. Electronics, Inc. (In re Communications Dynamics, Inc.), the United States Bankruptcy Court for the District of Delaware addressed the issue of whether a rejection damages claim is subject to set-off against a pre-petition debt owed by the creditor to the debtor

Obtaining foreign main proceeding status under chapter 15 becomes increasingly difficult

  • Cadwalader Wickersham & Taft LLP
  • -
  • USA
  • -
  • April 25 2008

As recently reported in our Fall 2007 issue, Judge Lifland’s decision in In re Bear Stearns High-Grade Structured Credit Strategies Master Fund, Ltd., limited the ability of offshore funds in financial distress to utilize chapter 15 of the Bankruptcy Code