10 results found
Jones Day | USA | 2 Dec 2016
In Brief: Delaware Bankruptcy Court Clarifies Burden of Proof for Automatic Stay Relief
In In re Abeinsa Holding, Inc., 2016 BL 335099 (Bankr. D. Del. Oct. 6, 2016), the U.S. Bankruptcy Court for the District of Delaware addressed what
Schulte Roth & Zabel LLP | USA | 8 Sep 2011
Second Circuit rejects borrower’s economic duress challenge and upholds validity of release contained in post-default forbearance agreement
On Aug. 26, 2011, the U.S. Court of Appeals for the Second Circuit held that a release of the lender given by the borrower in a forbearance agreement was not induced by economic duress and was therefore enforceable.
Day Pitney LLP | USA | 24 Feb 2011
New Jersey court analyzes counterclaim waiver provision in commercial loan documents
In a recent decision, the New Jersey Superior Court, Appellate Division, analyzed the enforceability of a counterclaim waiver provision contained in commercial loan documents.
Reed Smith LLP | USA | 13 Sep 2010
The Third Circuit expands the substantial-performance test to determine if a trademark license contract is executory
In re Exide Technologies, 607 F3d 957 (3rd Cir June 1, 2010) CASE SNAPSHOT This is an interesting case of seller's remorse.
Morgan Lewis | USA | 7 Dec 2009
Recent noteworthy decisions fall 2009
In re TOUSA, Inc., 408 B.R. 913 (Bankr. S.D. Fla. 2009) - prepetition lenders could not assert third-party claims against the debtors for breach of contract based on loan document representation that debtor borrowers, on a consolidated basis, would be solvent after the financing transaction because such claims did not depend on the outcome of the fraudulent transfer claims of the creditors, which asserted that individual debtor subsidiaries were insolvent.
Winston & Strawn LLP | USA | 19 Nov 2009
New York’s highest court narrows restrictions on transfer of claims
The New York Court of Appeals ruled on October 15, 2009 that transfers of legal claims do not violate New York’s champerty statute even where the transferee intends to enforce the claims in court, so long as the purpose of the transfer is not to profit from the costs of the resulting litigation.
Jones Day | USA | 1 Aug 2008
Can an executory contract lose its executoriness? "Maybe," says the Second Circuit
The ability of a chapter 11 debtor-in-possession (“DIP”) or bankruptcy trustee to assume or reject unexpired leases or contracts that are “executory” as of the bankruptcy filing date is one of the most important entitlements created by the Bankruptcy Code.
Cadwalader Wickersham & Taft LLP | USA | 31 Jul 2008
Contract party’s full performance does not prevent rejection of contract
In COR Route 5 Co. v. Penn Traffic Co.1 (In re Penn Traffic Co), the United States Court of Appeals for the Second Circuit held that a non-debtor party to an executory contract may not, by fulfilling its contractual obligations post-petition, deprive the debtor of its ability to reject an executory contract.
Cadwalader Wickersham & Taft LLP | USA | 21 Sep 2007
Pre-plan settlements that violate the absolute priority rule may face obstacles
In Motorola, Inc. v. Official Committee of Unsecured Creditors (In re Iridium Operating LLC), 478 F.3d 452 (2d Cir. 2007), the Official Committee of Unsecured Creditors (the “Committee”) and the debtors’ lenders sought approval of a settlement prior to confirmation of a plan of reorganization.
Reed Smith LLP | USA | 19 Feb 2007
Claim for failed stock trade is subject to mandatory subordination
In a case of first impression, the U.S. Court of Appeals for the Second Circuit has held that a claim for damages based on a chapter 11 debtor’s failure to issue shares of its common stock in exchange for a claimant’s stock in another company pursuant to a termination agreement is subject to mandatory subordination.