Securitized Loan Payments Safe Harbored Under Section 546(e)

May 14, 2015

The U.S. Bankruptcy Court for the Northern District of Illinois recently held in Krol v. Key Bank National Association (In re MCK Millennium Centre Parking, LLC) that the safe harbor of section 546(e) of the Bankruptcy Code applies to a debtor’s payments made in respect of mortgages pooled and held by a REMIC trust.  The […]

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Bankruptcy Court Analyzes Preference and Fraudulent Transfer Claims as Applied to the Termination of a Lease

May 13, 2015

Nothing says “closure” quite like a termination agreement reaffirmed by a bankruptcy court – right? Apparently not.  As demonstrated in In re Great Lakes Quick Lube Limited Partnership, under certain circumstances, a prepetition agreement for an early lease termination might provide unsecured creditors an opportunity to commence an action in the bankruptcy court seeking to […]

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What the Future Holds for Make-Whole Claims in Bankruptcy: Examining the Energy Future Holdings EFIH First Lien Make-Whole Decision – Part 1

May 12, 2015

Contributed by Jessica Liou Two recent decisions from large and highly contested chapter 11 cases add to the developing body of case law on the treatment of make-whole claims in bankruptcy.  First, in a two-part post, we discuss the United States Bankruptcy Court for the District of Delaware’s decision in Energy Future Holdings, and later, in […]

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Momentive Plan Confirmation Affirmed: Subordination Dispute

May 11, 2015

Judge Vincent Bricetti of the United States District Court for the Southern District of New York issued a ruling in the Momentive Performance Materials cases affirming the Bankruptcy Court’s confirmation rulings on Monday, May 4.  Key themes raised in this case of interest to distressed investors and addressed in Judge Bricetti’s ruling include the appropriate […]

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Happy Mothers Day From the Weil Bankruptcy Blog

May 8, 2015

“A boy’s best friend is his mother.” – Norman Bates “Let’s have a family gathering for the remaining family members who still speak to each other” – Someecards, Inc. On this Mothers’ Day weekend, we celebrate all mothers, wherever they may be.  But the Weil Bankruptcy Blog would never miss the opportunity to point out […]

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To Cap or Not to Cap, That is the Question: Bankruptcy Court Examines 502(b)(6)

May 7, 2015

Restructuring professionals cite giving the debtor a “fresh start” as one of the goals of bankruptcy.  In order to assist the debtor, the Bankruptcy Code contains a number of provisions capping claims.  One of these provisions is section 502(b)(6), which caps the claims of landlords for rent and other damages resulting from the termination of […]

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Closing a loophole, confirming market practice

May 6, 2015

Jetivia S.A. and another v Bilta (UK) Limited (in liquidation) and others [2015] UKSC 23 Insolvency practitioners and creditors alike will welcome the decision handed down by the Supreme Court on 22 April 2015. It reduces the wiggle room given to delinquent directors of insolvent companies when claims are brought against them, and confirms the […]

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