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Unsecured Debt

DLA Piper

Third Circuit Court Orders Solvent Debtors to Pay Contract Rate Interest, Make-Whole Fees to Unsecured Creditors

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Introduction - On September 10, 2024, the US Court of Appeals for the Third Circuit decided in In re Hertz that although make-whole fees are unmatured interest typically disallowed by section 502(b) of the Bankruptcy Code, a...more

Womble Bond Dickinson

Future Royalties and Bankruptcy: The Royalty Rollercoaster

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Be careful when you sell intellectual property (“IP”) in return for future royalty payments. You may think your contract is airtight, guaranteeing you a future annuity on the sales of product relating to your IP, but that...more

Mayer Brown

FSB Raises Concerns With CP and CD Markets

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On May 22, 2024, the Financial Stability Board (FSB) issued a report on vulnerabilities in the markets for commercial paper (CP) and negotiable certificates of deposit (CDs). The report analyzes the structure of the markets,...more

Vinson & Elkins LLP

Avoiding Investor Pitfalls in Complex Construction Financing Arrangements

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The frontier for construction project investment continues to grow – not just geographically and technologically – but also structurally, in the legal sense. Both equity and debt investors can employ a variety of complex...more

Holland & Knight LLP

Delaware Bankruptcy Court Grants Creditors' Committee of Debtor LLC Derivative Standing

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In a recent opinion, In re Pack Liquidating, LLC (Pack Liquidating), the U.S. Bankruptcy Court for the District of Delaware held that under Official Committee of Unsecured Creditors of Cybergenics Corp. v. Chinery...more

Latham & Watkins LLP

Lexology In-Depth - Acquisition And Leveraged Finance

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It was a muted start to the year for the acquisition and leveraged finance market due to a challenging macroeconomic climate. Interest rate hikes at one of the fastest paces on record, surging inflation (particularly in...more

Goodwin

Traps for the Unwary: Using Alternative Credit Data to Expand Credit Access to LMI Individuals and Underrepresented Communities

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Traditional credit underwriting methods, which are generally based on credit reports, have not always successfully captured the full picture of a borrower’s ability to repay. It is estimated that more than 45 million US...more

Ballard Spahr LLP

Bankruptcy Court Finds There Is No Excuse for Inconvenienced Creditors

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The U.S. Bankruptcy Court for the Eastern District of Virginia held recently that unsecured creditors who fail to monitor bankruptcy proceedings for treatment of their claim do not show “excusable neglect” and must face the...more

Stark & Stark

Commercial Foreclosures in Pennsylvania: How Deal Formation Impacts Litigation

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The fact that commercial transactions can very easily become complex is not a novel statement. When financial institutions lend money to commercial entities, the basic documentation required to evidence the loan, promise to...more

Proskauer Rose LLP

Key Issues When Navigating A Tenant's Bankruptcy

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Recently, two significant distressed companies with thousands of commercial leases, Rite Aid Corp. and WeWork Inc., each filed Chapter 11 bankruptcy cases, seeking in part to rationalize their geographic footprints through...more

Vinson & Elkins LLP

Vinson & Elkins Aviation Finance 2023 Recap: Top 5 Headline Events that Shaped the Aviation Industry

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As 2023 draws to a close we are taking a moment to recap on some of the headline events that have occurred in the aviation industry during the last 12 months:... 1. A New Aviation CLO Issuance- Alternative Aviation lender...more

Adams and Reese LLP

"The § 1111(b) Election: Overview, Considerations and Unique Issues in Subchapter V"

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Under § 506(a)(1) of the Bankruptcy Code, a secured creditor’s claim is secured only to the extent of the collateral’s value. Any amount over that value is bifurcated into a separate unsecured claim. Critically, if a...more

Troutman Pepper

$225,000 Punitive Damages Award Upheld Where Creditor Repeatedly Contacted Customer After Being Notified of Attorney...

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Earlier this year, a district court for the Middle District of Florida upheld a jury award of $225,000 in punitive damages in a debt collection case finding the defendant’s conduct “reprehensible” based on the physical harm...more

ArentFox Schiff

Avoiding Collateral Damage: Lessons of Lehman [Part II]

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In light of the banking failures of Silicon Valley Bank, Signature Bank and First Republic (as well as Credit Suisse), this summer, the Federal Reserve and the FDIC proposed guidance and rules for larger banks to (i) develop...more

Rivkin Radler LLP

Debtor Corp’s S Election: “Property” in Bankruptcy?

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Uncertain Future- The Congressional Budget Office (“CBO”) recently released some data for the federal government’s 2023 fiscal year. According to the CBO, the federal budget deficit for the year was $1.7 trillion, or...more

King & Spalding

Fifth Circuit Affirms Approval of Bid Protections for Debtor’s Prior Lender Over Unsecured Creditors’ Objection

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On July 25, 2023, the U.S. Court of Appeals for the Fifth Circuit affirmed a bankruptcy court’s approval of a break-up fee and expense reimbursement owed to a debtor’s prior lender, after the lender was not the winning bidder...more

Morrison & Foerster LLP

Darty Holdings SAS v Geoffrey Carton-Kelly: To Decide or Not to Decide?

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In this client alert, we set out the key findings by the Court of Appeal in Darty Holdings SAS v Geoffrey Carton-Kelly [2023] EWCA Civ 1135, which considers an appeal against the High Court decision that a repayment by Comet...more

King & Spalding

Texas Bankruptcy Court Awards Majority Stake in Reorganized Debtor to Unsecured Creditors After Avoiding the Value of the...

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On August 3, 2023, the U.S. Bankruptcy Court for the Southern District of Texas found that the majority of the shares of stock of a reorganized debtor should be allocated to unsecured creditors, and not the secured creditors,...more

Fox Rothschild LLP

Chapter 11 Plan Confirmed in Boxed, Inc.

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On August 30, the bankruptcy court for the District of Delaware confirmed Boxed Inc.’s second amended plan of liquidation on a fully consensual basis. The plan is the result of a global settlement among the debtors, the...more

Troutman Pepper

Who Is the Claims Agent and What Type of Information Can I Obtain on Their Website? - Creditor’s Rights Toolkit

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Troutman Pepper's Creditor’s Rights Toolkit is a series that provides practical insights to help creditors confront the challenges of commercial bankruptcy. A claims agent is a third party retained by the debtor to take on...more

Pullman & Comley, LLC

BANKRUPTCY BEAT: Connecticut Supreme Court Rules that New Homestead Law Applies to Protect up to $250,000 in Equity in a Home from...

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In an important ruling for personal bankruptcy cases in Connecticut, the Connecticut Supreme Court has ruled that Connecticut’s new homestead law, which increased the exempt amount of a “homestead” from $75,000 to $250,000,...more

Patterson Belknap Webb & Tyler LLP

The State of Student Loan Debt in Bankruptcy

On June 30, the Supreme Court ruled that the Biden administration did not have authority to forgive student loans under the Higher Education Relief Opportunities for Students Act of 2003 (HEROES Act). Despite this defeat,...more

Latham & Watkins LLP

Hong Kong Airlines - A Restructuring Unparalleled

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A novel debt restructuring plan will allow the carrier to recover following pandemic turbulence. In December 2022, Hong Kong Airlines’ Hong Kong scheme and English restructuring plan were sanctioned by the respective...more

Kaufman & Canoles

Title Insurance Client Alert - June 2023

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Recently, the Circuit Court of Arlington County, Virginia, issued an important decision involving the modification and enforcement of deeds of trust. In Mahaley v. Metters, CL21002581-00/01, 2023 Va. Cir. LEXIS 80 (Arlington...more

Cole Schotz

Top Considerations for Vendors Dealing with Distressed Companies

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As of March 2023, commercial chapter 11 filings were up 79% compared to the same period of 2022, which includes a number of large retailers. The first quarter of 2023 saw the highest number of corporate bankruptcy filings in...more

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