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Commercial Bankruptcy Chapter 11 Royalties

Jones Day

Third Circuit: Unsecured Claim for Royalties from Intellectual Property Purchased by Debtor Discharged Under Chapter 11 Plan

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Mitigating risk of loss associated with a bankruptcy filing should be an element of any commercial transaction, especially if it involves a sale or license of intellectual property rights. A ruling recently handed down by the...more

Latham & Watkins LLP

Third Circuit Finds Future Royalty Obligations From Sale Transaction Dischargeable in Bankruptcy

Latham & Watkins LLP on

The Third Circuit ruled that the obligations are prepetition “contingent and unliquidated” claims that can be discharged in a bankruptcy. In the chapter 11 bankruptcy of Mallinckrodt plc and certain subsidiaries (In re...more

Opportune LLP

Overriding Royalty Interest: A Viable Alternative To Conventional Debt-for-equity Restructuring

Opportune LLP on

By Glenn Sniezek When an oil and gas company is over-leveraged and needs to restructure its debt, the typical option that most companies look at is converting all or a portion of its debt to equity via an in-court or...more

Jones Day

Patently Abusive Chapter 11 Cases Filed by Non-Financially Distressed Companies Dismissed for Bad Faith

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In the service of the Bankruptcy Code’s goals of giving debtors a "fresh start" and ensuring that estate assets are fairly and equally distributed among similarly situated creditors, the Bankruptcy Code contains an array of...more

King & Spalding

Fifth Circuit Issues Decision Concerning Overriding Royalty Interests and Louisiana Oil Well Lien Act Claims

King & Spalding on

The ATP Oil & Gas Corporation bankruptcy case (Case No. 4:12-bk-36187, S.D. Texas) (“ATP”) involved the intersection of energy and bankruptcy law on a variety of issues. Most recently, the Fifth Circuit Court of Appeals...more

Foley & Lardner LLP

Franchisor Bankruptcy Case Dismissed as a Bad Faith Filing

Foley & Lardner LLP on

The United States Bankruptcy Court for the District of Delaware recently issued an opinion discussing the tension between using bankruptcy as a legitimate tool to maximize value versus using bankruptcy merely as a litigation...more

Shumaker, Loop & Kendrick, LLP

Client Alert: Dumbing Down Intellectual Property: Chapter 11 Impact on IP License Agreements

Innovation and creativity are essential for competitive advantage and success in a global economy. The attendant intellectual property assets are the product of substantial capital investment, and companies should carefully...more

Latham & Watkins LLP

Is Your ORRI What You Think It Is?

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Bankruptcy Court reinforces importance of parties’ intent in determining the nature of overriding royalty interests under state law. On April 2, 2015, the United States Bankruptcy Court for the District of Delaware...more

Troutman Pepper

Bankruptcy Sales: “It Ain’t Over ’Til It’s Over”

Troutman Pepper on

Great Plains Royalty Corp. v. Earl Schwartz Co. (In re Great Plains Royalty Corp.), 520 B.R. 292 (Bankr. D. N.D. 2014) – Two companies that acquired assets in a bankruptcy auction moved to reopen the case to clarify...more

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