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HTMLSeven Things Business Owners Need To Know About Bankruptcy Preferences
Mark Ludolph; Heyl, Royster, Voelker & Allen Professional Corporation;
Legal Alert/Article
July 26, 2016, previously published on Spring 2016
Most business owners have experienced the frustration of a customer filing for bankruptcy, leaving a substantial unpaid balance. In some cases, you file your proof of claim with the bankruptcy court and await the resolution to determine what, if any, distribution (usually pennies on the dollar) you...

 

HTMLU.S. Bankruptcy Court in California Issues Decision on Enforceability of Prepetition Waivers of the Automatic Stay
Duane Morris LLP;
Legal Alert/Article
July 23, 2016, previously published on May 4, 2016
Adding to the unsettled body of case law on the enforceability of prepetition waivers of the automatic stay, on April 27, 2016, the U.S. Bankruptcy Court for the Central District of California issued a memorandum decision finding that cause existed to grant relief from stay where a chapter 11...

 

HTMLViolation of the Automatic Stay Seeking to Enforce Arbitration Award Against Nondebtor: Beware, You May Be on Thin Ice
Duane Morris LLP;
Legal Alert/Article
July 22, 2016, previously published on May 13, 2016
The United States Bankruptcy Court for the Southern District of Ohio, Eastern Division, (“the Court”) held in In re John Joseph Louis Johnson, III, Case No. 14-57104, 2016 WL 1719149, that a creditor violated the automatic stay by seeking to enforce an arbitration award against...

 

HTMLEleventh Circuit Holds That Bankruptcy Rules Apply to Adversary Proceedings in District Court, Orders Reinstatement of $6-Million Verdict on Procedural Grounds
Sutherland Asbill Brennan LLP;
Legal Alert/Article
July 8, 2016, previously published on July 1, 2016
When a federal district court oversees adversary bankruptcy proceedings, is the post-trial deadline to request judgment as a matter of law governed by Federal Rule of Civil Procedure 50(b), which allows 28 days to file such a motion—or by Bankruptcy Rule 9015(c), which allows only 14 days?...

 

HTMLCity of Aurora Now Requires Registration of Vacant or Foreclosed Properties
Casey B. Hicks; Weltman, Weinberg & Reis Co., L.P.A.;
Legal Alert/Article
June 16, 2016, previously published on May 19, 2016
Ordinance Number 016-004 was recently enacted in Aurora, Illinois and requires all vacant or foreclosed properties to be registered by the owner with the city. The ordinance defines “owner” broadly; it includes a mortgagee that has instituted foreclosure proceedings against the...

 

HTMLWorried about a Sears Insolvency? Here are 5 Lessons from the Target Canada Insolvency for Landlords to Remember
David Ullman; Blaney McMurtry LLP;
Legal Alert/Article
June 16, 2016, previously published on May 18, 2016
Unfortunately for the Landlord community in Canada’s retail space, the flood of retail insolvencies is likely not over. In addition to open speculation about Sears, 2016 has already seen the insolvency of major Canadian retail locations previously occupied by Danier Leather, Aeropostale, PJ...

 

HTMLU.S. Supreme Court Holds that "Actual Fraud" Discharge Bar Encompasses Fraudulent Transfers
Shay Dvoretzky, Emily J. Kennedy; Jones Day;
Legal Alert/Article
June 16, 2016, previously published on May 2016
On May 16, 2016, the U.S. Supreme Court decided Husky International Electronics, Inc. v. Ritz, No. 15-145, holding that the "actual fraud" bar to discharge under section 523(a)(2)(A) of the Bankruptcy Code encompasses an individual debtor's knowing receipt of fraudulently transferred...

 

HTMLFirst Impressions: Third Circuit Rules That a Terminated Collective Bargaining Agreement May Be Rejected Under Section 1113
Mark G. Douglas, T. Daniel (Dan) Reynolds; Jones Day;
Legal Alert/Article
June 15, 2016, previously published on May/June 2016
In In re Trump Entm’t Resorts UNITE HERE Local 54, 810 F.3d 161 (3d Cir. 2016), the U.S. Court of Appeals for the Third Circuit answered a question of apparent first impression among the circuit courts of appeal by ruling that section 1113 of the Bankruptcy Code permits a bankruptcy trustee...

 

HTMLSeventh Circuit Rules That Prepetition Nonresidential Lease Termination Is Voidable “Transfer” in Bankruptcy
Mark G. Douglas, Timothy (Tim) Hoffmann; Jones Day;
Legal Alert/Article
June 15, 2016, previously published on May/June 2016
Even before Congress added section 365(c)(3) to the Bankruptcy Code in 1984, it was generally understood that a nonresidential real property lease which has been validly terminated under applicable law prior to a bankruptcy filing by the debtor-former tenant cannot be assumed or assigned in...

 

HTMLBlocking Member Provision in LLC Agreement Designed to Prevent Bankruptcy Filing Unenforceable
Mark A. Cody, Mark G. Douglas; Jones Day;
Legal Alert/Article
June 15, 2016, previously published on May/June 2016
A contractual waiver of an entity’s right to file for bankruptcy is generally invalid as a matter of public policy. Nonetheless, lenders sometimes attempt to prevent a borrower from seeking bankruptcy protection by conditioning financing on a covenant, bylaw, or corporate charter provision...

 


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