Speed Read

  1. Classes – turnover agreement was between creditors and not with the company, so neither it nor lock up changed rights being compromised
  2. Even if it had, judge found that rights were not so dissimilar – judge considered at a high level what FMS would suffer on liquidation compared with turnover and found that this would cause all reasonable senior lenders to “unite in a common cause”
  3. New Obligations – although not decided, concern raised by judge about ability of scheme to impose new obligations to indemnify new guarantees, at least directly. New obligation therefore deleted from scheme prior to sanction
  4. Stay provisons – scheme provisions preventing senior lenders taking action overseas deleted prior to sanction. FMS therefore free to commence actions in Germany
  5. Court confirmed jurisdiction over overseas companies and effect of law change to establish sufficient connection
  6. Court of Appeal has granted leave to appeal, to be heard in December.

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Third Quarter Review

November 20, 2014

Our Third Quarter Review covers the latest and greatest developments in the restructuring world in the past quarter and follows hot on the heels of the Inaugural Review published in September to coincide with the fourth anniversary of the founding of the Weil Bankruptcy Blog. And what a fascinating few months it’s been: Judge Drain […]

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Sixth Circuit Says, “I’m With the Underhills!”

November 19, 2014

You might recognize the last name “Underhill” from the 1980’s movie, Fletch. In the movie, the main character, Irwin “Fletch” Fletcher overhears snobby country club member Mr. Underhill speaking rudely to a waiter. To get revenge, Fletch famously tells the waiter he’s “with the Underhills” and proceeds to charge a Bloody Mary, a steak sandwich […]

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Thoughts on a New Age of Consent: What Does Consent Mean with Respect to Stern Claims?

November 18, 2014

“Will you, won’t you, will you, won’t you, won’t you join the dance?” – The Mock Turtle’s Song, Lewis Carroll’s Alice’s Adventures in Wonderland Vinny Gambini: Are you suuuuure? Mona Lisa Vito: I’m positive. – My Cousin Vinny By now, readers of the Weil Bankruptcy Blog should be familiar with the myriad issues raised in […]

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Crumbs Bake Shop Finds Layers of Rights Under a Rejected Trademark License

November 17, 2014

As previously discussed here and here, section 365(n) of the Bankruptcy Code offers special protection for licensees of intellectual property. When a debtor-licensor rejects an intellectual property license, section 365(n) allows the licensee to elect to retain its rights under the license without binding the licensor to any continuing obligations.

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Bank of England’s New Strategy for Resolving Failing Financial Institutions

November 14, 2014

On 23 October 2014, the Bank of England published its strategy for resolving failing financial institutions in an orderly manner. The Bank of England’s new publication outlines the three stages of resolution – stabilisation, restructuring and exit from resolution – and sets out exactly how the Bank would use its “toolkit” of resolution measures in […]

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Free Trade, Comity, and the Bankruptcy Code

November 13, 2014

Those of us old enough to remember the passage of the North American Free Trade Agreement (or NAFTA) recall its promise of free movement of goods, services, persons, and capital between Canada, the United States, and Mexico, and greater economic prosperity in each of these countries. Regardless of whether you think that promise was fulfilled, […]

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