There has been quite a lot of discussion over the past few months about the bench rulings issued by Judge Drain of the Bankruptcy Court for the Southern District of New York in Momentive Performance Materials (see our extensive coverage in four parts here, here, here, and here), in particular his views on determining a cramdown rate of interest for secured creditors. As we noted before, Judge Drain’s bench ruling suggests that the allowed claim of a secured creditor may be satisfied by a long-dated replacement note with a below-market interest rate. Understandably, the specter of future cramdown scenarios has been spooking many a secured creditor. Continue reading >>

Where’s the Beef? (Part II)

October 30, 2014

This is the second of two posts on Saracheck v. Crown Heights House of Glatt, Inc., a recent decision from the Bankruptcy Court for the Northern District of Iowa regarding an avoidance action against food distributor, Crown Heights House of Glatt, Inc. commenced in the chapter 7 bankruptcy case of Agriprocessors, Inc. Our prior post […]

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Where’s the Beef? (Part I)

October 29, 2014

The question “Where’s the Beef?” is typically associated with the famous Wendy’s television commercial from 1984 and its lovable actress, Clara Peller. But the recent decision in the chapter 7 case of a national meat processor had an avoidance action defendant asking, “Where’s the Beef … (with me)?” after the debtor’s chapter 7 trustee attempted […]

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When the Stakes are High, Union Can’t Gamble with Gambling Debtors – Bankruptcy Court Approves Casino’s Rejection of CBA

October 28, 2014

When evaluating a debtor’s bankruptcy or restructuring options, determining how to increase or preserve the debtor’s liquidity is crucial to the analysis. Well-advised debtors with significant labor liabilities will need to explore whether attaining cost savings through rejection of their collective bargaining agreements is a viable alternative. When dealing with the issue of CBA rejection […]

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CCAA Court Reconsiders Accepted Claim Under Claims-Bar Order

October 27, 2014

NORTH OF THE BORDER UPDATE This article has been contributed to the blog by Andrea Lockhart, an associate in the insolvency and restructuring group of Osler, Hoskin & Harcourt LLP Introduction A recent decision of the British Columbia Supreme Court in Re Bul River Mineral Corp. highlights the discretionary nature of claims-bar orders under the […]

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Courtroom Drama: Argentinian Sovereign Debt

October 24, 2014

In July 2014, Argentina defaulted on a $539m interest payment on its sovereign debt in the latest round of its ongoing legal dispute with bondholders. Continue >>>

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Transcending Self-Protection: How a Selfless Creditor Can be Handsomely Rewarded

October 23, 2014

Outside of section 506(b) of the Bankruptcy Code, which affords secured creditors a right to enforce their contractual entitlements to fees, the Bankruptcy Code does not expressly give creditors a right to seek reimbursement of fees incurred during a debtor’s bankruptcy. Section 503(b)(3)(D) of the Bankruptcy Code, however, permits a creditor to seek reimbursement of […]

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