Legal Archives - Page 3 of 8

The Jevic Case: High Court Rejects Deviations to Chapter 11 Structured Dismissals

In March, the U.S. Supreme Court overruled the decision of three lower courts by determining the Bankruptcy Code does not permit “priority skipping” in Chapter 11 structured cases. Kurt Mayr and Shannon Wolf examine the pivotal Czyzewski v. Jevic Holding case and explain the implications for future structured dismissals in Chapter 11 cases.

A ‘Trade is a Trade’: Why It Matters Here and in Markets Around the World

A recent case before the New York State Court of Appeals ruled that a “trade is a trade” if an informal agreement exists even though a formal document has not been signed. Martin Eisenberg represented Stonehill Capital Management in this case that has international ramifications and creates stability in the marketplace.

April 20, 2017 Martin Eisenberg | Stonehill Capital Management ABF Journal

Chapter 7 Policy Maker: How Creditors Can Benefit from Chapter 7 Proceedings

Creditors often refrain from actively participating in Chapter 7 bankruptcy proceedings. Jack O’Connor interviews his colleague, Michael Traison, who represented the creditors in a Chapter 7 case and was able to recoup a significant amount for the estate in a precedent-setting decision.

March 24, 2017 In re Connolly North America | Jack O'Connor | LLC | Michael Traison | Sugar Felsenthal Grais & Hammer ABF Journal

Understanding Agreements Among Lenders: How the Unitranche Differs From an Intercreditor Agreement

Unitranche facilities are growing in popularity. They require less paperwork, so borrowers find them more economical and quicker to close. The unitranche is an agreement among lenders without the framework of the UCC or the Bankruptcy Code. Blank Rome’s Danielle Garcia and Alyssa Keon explain how unitranche facilities differ from intercreditor agreements and point out ways to create a more effective agreement among lenders.

February 7, 2017 Alyssa Keon | Blank Rome | Danielle Garcia | Unitranche Facilities ABF Journal

Blocking Rights in LLC Operating Agreements: Do These Provisions Help Lenders?

Traditionally, secured lenders have utilized blocking rights to prevent a limited liability company from filing for bankruptcy before the lenders have recovered the debt. Nancy Peterman explains that two recent court decisions have made it more difficult for lenders to use blocking rights without taking the rights of other stakeholders into account.

November 17, 2016 Greenberg Traurig | LLC Operating Agreements | Nancy Peterman ABF Journal

What’s in Your Intercreditor Agreement? For First Lien Lenders, the Devil’s in the Details

For many years, bankruptcy courts failed to enforce intercreditor agreements because the parties involved were not in bankruptcy. Courts today are enforcing these agreements strictly according to their text. Failure to note the precise wording of an intercreditor agreement can trip up a first lien lender and give the second lien lender the upper hand during bankruptcy proceedings.

September 16, 2016 bankruptcy | David W. Morse | Intercreditor Agreement | Otterbourg ABF Journal

Seven Banks to Pay $324MM in Rate Rigging Case

Seven of the world’s biggest banks have agreed to pay $324 million to settle claims they conspired to rig an interest rate benchmark used in the derivatives market. ABF Journal illustrator Jerry Gonzalez envisions the judgement day.

Lenders Beware: Failure to Investigate Suspicious Facts Can Void Your Security

If a deal seems suspicious in the early stages, the lender is required to go the extra mile to confirm that the borrower is being 100% honest. Michael Molinaro explains that the court expects a lender to check for fraud before a transfer of collateral is made. Failure to investigate can prove expensive.

July 20, 2016 Ackerman LLP | Michael L. Molinaro ABF Journal

Factoring Business Owner Charged With Lying to FBI

A New Jersey factoir reported a fraudulent client to the FBI. Instead of working with the Feds as they requested, he sold accounts to another factor. ABF Journal illustrator Jerry Gonzalez illustrates the fraud triangle.

June 7, 2016 FBI | William Kirchgessner ABF Journal

What’s In a UCC Name Requirement? When to Use Specific and Generic Names

Revisions in the Unified Commercial Code have made collateral descriptions on financial statements simpler. But there are times when only specific names will do. Attorney Jeffrey Wurst explains when a generic name will suffice and when a specific name is critical to ensure a security interest.

Category: Legal