Delaware Bankruptcy Court Declines to Bind Credit Bidders to the Mast

Section 363(k) of the Bankruptcy Code grants secured creditors the right to credit bid up to the full amount of their claim as a form of currency to bid to purchase assets securing their claim from a debtor in connection with a stand-alone sale of assets under section 363(b). In […]

Tenth Circuit B.A.P. on Novinda’s Classification: No Gerrymandering, No(n)-Creditor Interest, No Problem

Recently in Novinda,1 the Tenth Circuit Bankruptcy Appellate Panel2 upheld the separate classification of creditor claims in a chapter 11 plan on the basis that, among other things, such claims possessed certain attributes (described as “non-creditor interests”) that distinguished them from other similarly situated claims, overruling objections from Appellant creditors […]

Getting off on the Right Foot: Bankruptcy Court Rejects U.S. Trustee’s Unconventional Position That Management Consultant Must be Retained Under Section 327 of the Bankruptcy Code

In In re Nine West Holdings, Inc., the United States Bankruptcy Court for the Southern District of New York overruled the U.S. Trustee’s objection to the debtors’ application to retain Alvarez & Marsal North America, LLC (“A&M”) to provide the debtors an interim CEO and certain additional personnel pursuant to […]

Absolute(ly) No – A Reminder That When It Comes to Reorganization, Equity Comes Last

A fundamental tenet of chapter 11 bankruptcies is the absolute priority rule. Initially a judge-created doctrine, the absolute priority rule was partially codified in section 1129(b)(2)(B)(ii) of the Bankruptcy Code. Under section 1129, plans must be “fair and equitable” in order to be confirmed. Section 1129(b)(2)(B)(ii)1 provides guidance as to […]

A Check is Transferred When It’s Honored, Not Delivered

Readers familiar with contract law undoubtedly know the “mailbox rule,” that an offer is accepted the moment a document goes in the mail.1  The United States Bankruptcy Appellate Panel for the Ninth Circuit (the “BAP”) recently dealt with its own variant of the mailbox rule: does the issuance of a […]

Joint Plan Cramdown: Per Plan or Per Debtor?

The Bankruptcy Code’s cramdown provisions are a powerful tool for debtors in the plan confirmation process. Pursuant to section 1129(a)(10) of the Bankruptcy Code, a plan may be confirmed if, among other things, “at least one class of claims that is impaired under the plan has accepted the plan.” Once […]

From Gucci to Knock-off: How Bankruptcy Leaves Trademark Licensees at Risk

If you were to walk down Fifth Avenue and see a store displaying a white apple suspended in a large glass case, more likely than not you would immediately think of the California-based tech giant who shares its name with the nutritious snack. Similarly, if the person walking in front […]