News & Analysis as of

Commercial Bankruptcy Affiliates

Stark & Stark

99 Cents Only Is Not Enough to Avoid Chapter 11 Bankruptcy

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​​​​​​​Number Holdings, Inc. the parent company of 99 Cents Only Stores LLC (“99 Cents” or the “Company”), an extreme value retail store operator, along with several affiliates, filed for Chapter 11 bankruptcy protection in...more

Miller Canfield

Passage of Bankruptcy Threshold Adjustment and Technical Corrections Act

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Congress has made some small but important changes to the Bankruptcy Code through its enactment of the Bankruptcy Threshold Adjustment and Technical Corrections Act (the "Act") on June 21, 2022. The most important of these...more

Robinson & Cole LLP

An ‘Affiliate’ of a Public Company Is Barred from Reorganizing Under the Bankruptcy Code’s New Subchapter V

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The Small Business Reorganization Act of 2019 (SBRA) aims to simplify and shorten the Bankruptcy Code’s reorganization process for small-business debtors, making Chapter 11 more accessible. Effective as of February 2020,...more

WilmerHale

Olinda Star Achieves Broad Intercompany Cross-Border Relief

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Complex intercorporate structures and related financings pose specific challenges in the cross-border insolvency context. Where a number of affiliates are liable for the debts of a common corporate enterprise, complete...more

Dechert LLP

Third Circuit Clarifies the Inner Workings of Foreclosure on Repo Collateral

Dechert LLP on

In the fifth opinion involving the repo liquidation saga of HomeBanc, the Third Circuit addressed several crucial issues involving the liquidation and valuation of repo collateral in bankruptcy. In re HomeBanc Mortg....more

Pillsbury Winthrop Shaw Pittman LLP

Nonconsensual Third-Party Release Limits: Substantial Financial Contribution Won’t Buy Non-Debtors a Release From Claims That...

Reorganization plans providing for non-debtor releases (i.e., releasing non-debtors from claims by creditors of the debtor) have been regularly challenged in recent years, frequently by the United States Trustee and other...more

Latham & Watkins LLP

Fifth Circuit: Make-Whole Premiums Should Be Disallowed as Unmatured Interest

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Fifth Circuit finds that make-whole premiums should be considered unmatured interest subject to disallowance under Section 502(b)(2) of the Bankruptcy Code to the extent designed to compensate for future interest payments. ...more

A&O Shearman

Keep Comity and Carry On: US Bankruptcy Court Grants Recognition and Enforcement of a Foreign Debtors’ Settlement Agreement...

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Parties involved in cross-border bankruptcy /restructuring situations may be wary of the risk that repeated litigation in different courts with jurisdiction over the same debtor will result in conflicting judgments. The...more

Bennett Jones LLP

Poseidon Plan of Arrangement Resolves Director and Auditor Liability Claims

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The Alberta Court of Queen's Bench recently sanctioned the Companies' Creditors Arrangement Act ("CCAA") plan of compromise and arrangement (the "Plan") of Poseidon Concepts Corp. and certain of its affiliates (together,...more

Katten Muchin Rosenman LLP

Sears Canada Files for CCAA Protection: A Distressed Investor's Overview of US Bankruptcy and Canadian Insolvency Law

On June 22, Sears Canada Inc. ("Sears Canada") and certain affiliates1 (collectively, the "Sears Canada Group") sought and obtained insolvency protection under the Companies' Creditors Arrangement Act (CCAA) from the Ontario...more

Dechert LLP

Substantive Consolidation: It’s Alive and Well (or Maybe Just Alive)

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The doctrine of substantive consolidation (generally- the power of a bankruptcy court to consolidate the assets and liabilities of affiliated entities in bankruptcy) is a recognized remedy exercised by bankruptcy courts – one...more

King & Spalding

Resolution of Intercreditor Dispute in Favor of ABL Lenders in the RadioShack Bankruptcy Case

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On May 11, 2016, the Delaware bankruptcy court issued an opinion in the RadioShack bankruptcy case addressing an intercreditor dispute between Salus Capital Partners, LLC, the “last out” lender in RadioShack’s prepetition...more

Shumaker, Loop & Kendrick, LLP

Essar Steel Affiliates File Chapter 11 and Chapter 15 Petitions in Delaware

Certain North American based affiliates of Essar Steel Ltd (Mumbai) have today filed Chapter 11 and Chapter 15 petitions in Delaware. ESML Holdings Inc. and Essar Steel Minnesota LLC have filed Chapter 11 proceedings in...more

Alston & Bird

Finance Advisory: When Vendors Are Consigned to a Lower Authority

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The latest in a long line of troubled retailers, Sports Authority Holdings, Inc., and certain affiliated entities, filed for bankruptcy protection on March 2, 2016. The bankruptcy case highlights one of the key aspects of...more

Cole Schotz

New Case Filing – Chapter 15 – PT Holdco, Inc.

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PT Holdco, Inc. and four of its affiliates, including Primus Telecommunications Canada, Inc., which resell residential and business telecommunications services, have commenced cases (Lead Case No. 16-10131 (LSS)) under...more

Cole Schotz

New Delaware Chapter 11 Filing – Affiliates of Variant Holding Company, LLC

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Thirty-four affiliates of Variant Holding Company, LLC (“Variant”) have filed chapter 11 petitions before the United States Bankruptcy Court for the District of Delaware. The debtors will seek to have their cases jointly...more

Cole Schotz

New Delaware Chapter 15 Filing – Thane International, Inc.

Cole Schotz on

Consumer product marketer Thane International, Inc. and six affiliates have filed a chapter 15 petition before the United States Bankruptcy Court for the District of Delaware (Lead Case # 15-12186). The case has been...more

Cole Schotz

New Delaware Filing – Affirmative Insurance Holdings, Inc. et al.

Cole Schotz on

Affirmative Insurance Holdings, Inc. (OTC: AFFM), a provider of non-standard personal automobile insurance policies, and ten affiliates have filed chapter 11 petitions before the United States Bankruptcy Court for the...more

Cole Schotz

New Delaware Chapter 11 Filing – American Apparel, Inc.

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American Apparel, Inc. (APP, NYSE) and five affiliates have filed chapter 11 petitions in the United States Bankruptcy Court for the District of Delaware (lead case # 15-12055-BLS) and will seek approval of a pre-packaged...more

Morris James LLP

Prepared Food Manufacturer, Golden County Foods, Inc., Cooks Up A Chapter 11 Case

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On Friday, May 15, 2015, Golden County Foods, Inc. (“GCF”), a business that manufactures prepared foods, filed a voluntary chapter 11 petition in the United States Bankruptcy Court for the District of Delaware. It was joined...more

King & Spalding

Williams v. FDIC (In re Positive Health Management) - Lender Forced to Return Payments Made by Non-Borrower

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On October 16, 2014, the United States Court of Appeals for the Fifth Circuit entered an order requiring a real estate lender, First National Bank (the “Lender”), to refund certain mortgage payments it received from...more

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