One topic we regularly write about on the Bankruptcy Blog is releases – especially third-party releases. In fact, as recently as Thursday, we wrote about third-party releases. The topic of third-party releases is often controversial, and circuits disagree about the extent to which they are permissible, if at all. In a recent memorandum opinion confirming the chapter 11 plan of drybulk shipper Genco Shipping and its debtor affiliates, the Honorable Sean Lane of the United States Bankruptcy Court for the Southern District of New York in In re Genco Shipping & Trading Limited, et. al. waded into the controversy by considering the appropriateness of third-party releases – and non-consensual ones at that. Continue reading >>

Comment Period Closes for Canadian Government Public Consultation Process on Insolvency Law Reform

July 21, 2014

NORTH OF THE BORDER UPDATE This article has been contributed to the blog by Patrick Riesterer. Patrick Riesterer is an associate in the insolvency and restructuring group of Osler, Hoskin & Harcourt LLP. We recently reported on the public consultation process on insolvency law reform initiated by Industry Canada, the Canadian federal department responsible for […]

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Highlights From 2014 (and Beyond)

July 18, 2014

It’s a beautiful day for the beach.  Even though some of us may be at the beach today (and if you are at the beach, why didn’t you invite us?), bankruptcy, like time, waits for no one.  Wherever we happen to be, ‘tis the season for a little something light – or at least lighthearted.  […]

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The Fourth Circuit Provides a Useful Roadmap for Debtors Seeking Third-Party Releases

July 17, 2014

The inclusion of third-party releases in plan of reorganization can be a particularly contentious aspect of the plan confirmation process. Debtors seeking such releases typically face opposition from affected creditors and scrutiny from bankruptcy courts that consider such releases prone to abuse. As the Fourth Circuit’s recent decision in National Heritage Foundation, Inc. v. Highbourne […]

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The Pain that Comes along with Walking a Mile in Your Own Shoes … Circuits Refuse to Allow Reorganized Debtors to “Step in the Shoes” of Debtors in Possession as Subrogees

July 16, 2014

Walk a mile in my shoes Walk a mile in my shoes Yeah, before you abuse, criticize and accuse Walk a mile in my shoes (Elvis Presley, “Walk a Mile in My Shoes”) Walk a mile in these Louboutins But they don’t wear these *%!# where I’m from I’m not hating, I’m just telling you […]

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Code vs. Contract: Fifth Circuit holds that Section 506(b) Governs Recovery of Proceeds from a Foreclosure Sale After the Automatic Stay Has Been Lifted

July 15, 2014

When an oversecured creditor forecloses on a debtor’s property after the automatic stay has been lifted, does the Bankruptcy Code (as opposed to state law) govern recovery of attorney’s fees and other amounts from the sale proceeds? Does the bankruptcy court have jurisdiction over the distribution of such proceeds? In Goldsby v. 804 Congress LLC […]

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Could a Bitcoin Exchange Constitute a “Stockbroker”?

July 14, 2014

This is the third post in our Bitcoin Bankruptcy series on the Weil Bankruptcy Blog.  In the spring of this year, the shutdown of Japanese bitcoin exchange Mt. Gox made us think about what might have happened if Mt. Gox were a U.S.-based bitcoin exchange.  We began the series by taking a general look at […]

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