Business Restructuring Review | May–June 2021 – Insolvency/Bankruptcy/Re-structuring

In this problem:

First Impressions: Third Circuit Cancels Triangular Compensation In Bankruptcy

In In re Orexigen Therapeutics, Inc., 990 F.3d 748 (3d Cir. 2021), the United States Court of Appeals for the Third Circuit ruled prima facie that “triangular netting” did not meet the Bankruptcy requirement of “mutuality” Coded. [read more …]

Should the Equitable Mootness Bar only appeal Chapter 11 plan confirmation orders?

As a recent decision by the United States District Court for the North District of Texas demonstrated, courts disagree on whether moot fairness should apply only to appeals. plan confirmation orders. In Harden Healthcare LLC v OLP Wyoming Springs LLC (In re Senior Care Centers, LLC), 2021 WL 632779 (ND Tex. February 18, 2021), the district court upheld a bankruptcy court order approving a settlement reached in a sale transaction. In that decision, the court held that the appeal was neither fair nor moot, noting that, according to the Fifth Circuit precedent, moot fairness should not be extended to such a “new frontier”. [read more …]

Debate Intensifies Requests for Substantial Contribution in Chapter 7 Cases

In In re Concepts Am., Inc., 625 BR 881 (Bankr. ND Ill. 2021), the US Bankruptcy Court for the Northern District of Illinois ruled that “[t]The clear and unambiguous language of § 503 (b) (3) (D) [of the Bankruptcy Code] is conclusive – requests for substantial contributions are allowed as administrative expenditure only in Chapters 9 and 11, and not in Chapter 7. ” [read more …]

Bankruptcy court reclassifies deemed loan as equity

In In re Live Primary, LLC, 2021 WL 772248 (Bankr. SDNY March 1, 2021), the US Bankruptcy Court for the Southern District of New York ruled that an alleged loan made to a start-up limited liability company by one of its members must have been treated as a capital contribution because, among other things, the company was insufficiently capitalized and the unsecured “loan” was not properly documented, carried a de minimis interest rate and was only repayable in the event of a share offer or a change of control. [read more …]

In short: “Failed” Delaware Corporation Can Transfer Assets to Creditors Instead of Foreclosure Without Shareholder Consent

In Stream TV Networks, Inc. v SeeCubic, Inc., 2020 WL 7230419 (Del. Ch. December 8, 2020), the Delaware Court of Chancellery ruled that the assets of Stream TV Networks, Inc., an insolvent 3D television technology company incorporated in Delaware, could be transferred to an affiliate of two of Stream’s secured creditors in lieu of foreclosure without seeking approval from Stream shareholders under Section 271 of the General Corporation Law of Delaware or Stream’s Certificate of Incorporation. [read more …]

US Supreme Court denies Landmark review
Tribune Safe Harbor decision

On April 19, 2021, the United States Supreme Court refused to hear an appeal from a landmark 2019 decision of the United States Court of Appeals for the Second Circuit regarding the applicability of the sphere of Bankruptcy Code security for certain payments of securities, commodities or futures. to prevent bankruptcy avoidance of $ 8.3 billion in payments made to shareholders of Tribune Co. as part of its 2007 leveraged buyout. [read more …]


Jones Day was ranked # 1 in the 2021 BTI Consulting Group A-Team Customer Service Report for the fifth consecutive year and the 13th time since BTI published its results, based on independent research.

Bruce Bennett (Los Angeles and New York) was featured in the new book The Caesars Palace coup: how a billionaire brawl over the famous casino exposed the power and greed of Wall Street (Diversion Books, March 2021) for his role as representative of senior bondholders in the 2016 bankruptcy cases of gaming giant and hotel Caesars Entertainment.

Corinne Ball (New York) was interviewed in a Turnaround Management Association podcast on March 17, 2021 titled “Interview with a Turnaround Legend: Past, Present and Future of Bankruptcy Law”.

Bruce Bennett (Los Angeles and New York), Heather Lennox (Cleveland and New York), and Ben Larkin (London) have been classified in the Bankruptcy / Restructuring or Restructuring / Insolvency practice areas in Global Chambers 2021.

An article written by Corinne Ball (New York) titled “The ‘Two Hats’ Doctrine for Shared Directors and Officers Weakens When Assessing Waiver of Attorney-Client Privilege Suggesting Caution on Sharing Legal Advice” was published in the issue of 21 April 2021 from The New York Legal Journal.

An article written by Bruce Bennett (Los Angeles and New York), Heather Lennox (Cleveland and New York), Christopher DiPompeo (Washington), and Dan. T. Moss (Washington) entitled “Supreme Court: Mere Retention of Property Does Not Violate Automatic Stay” was published on April 9, 2021, in the Bulletin of the Office of International Law.

Corinne Ball (New York) was among the recognized “Senior Statespeople” in the field of bankruptcy / restructuring in Global Chambers 2021.

An article written by Dan T. Moss (Washington) and Mark G. Douglas (New York) titled “Second Circuit: Madoff Ponzi Scheme Customers Did Not Receive Fictitious Profit Payments ‘For Value'” was published in the March 2021 issue of The Wall Street Lawyer.

Roger Dobson (Sydney), Katie Higgins (Sydney), Tim L’Estrange (Melbourne), and Lucas Wilk (Perth) were recognized in the field of insolvency and reorganization law in the 2022 edition of Australia’s best avocados. ” Roger Dobson (Sydney) was also named “Advocate of the Year” for 2022 in the distressed investing and debt trading area.

An article written by Charles M. Oellermann (Columbus) and Mark G. Douglas (New York) titled “The year of bankruptcy: 2020” was published on March 12, 2021 in the Bulletin of the Office of International Law.

Attachments : Review of corporate restructuring May-June 2021

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

Comments are closed.