Claims

Too Close for Comfort? LATAM Judge Upholds $1.3 Billion in Intercompany Loans

12/15/22

A decision earlier this year in the LATAM Airlines Group bankruptcy addressed the validity of claims arising from intercompany loans between a corporate debtor’s affiliates.  Judge James L. Garrity’s opinion overruling objections to the claims provides helpful guidance on an issue that often gives rise to disputes in chapter 11 cases.

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Nobody’s Default? Ninth Circuit to Decide Whether Defaults Need to be ‘Material’ Before Landlords Get Adequate Assurance Under the Bankruptcy Code

09/13/22

Section 365 of the Bankruptcy Code allows debtors to “assume” unexpired leases, recommitting themselves and their counterparties to the existing lease terms, subject to approval by the Bankruptcy Court.  If there are existing defaults under the lease, section 365(b) appears to require that the debtor provide the counterparty with adequate assurance of prompt cure of defaults, compensation for losses resulting from the defaults, and adequate assurance of future performance under the lease, ensuring that the landlord enjoys the full benefit of its bargain going forward.

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Driving While Unimpaired – Delaware Judge Issues Important Ruling in Hertz Chapter 11 Case on Allowance of Make-Whole Premiums, Treatment of Unimpaired Creditors, and Postpetition Interest (Part 2)

02/09/22

The allowance of postpetition interest in solvent debtor chapter 11 cases has become an important issue in recent years for corporate issuers, bondholders and other creditors.  This post will examine a recent decision in the Hertz case by Judge Mary Walrath of the U.S.

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Driving While Unimpaired – Delaware Judge Issues Important Ruling in Hertz Chapter 11 Case on Allowance of Make-Whole Premiums, Treatment of Unimpaired Creditors, and Postpetition Interest (Part 1)

01/28/22

The treatment of make-whole premiums in chapter 11 cases in solvent debtor cases has become an important issue in recent years for corporate issuers and bondholders.  This post will examine a recent decision in the Hertz case by Judge Mary Walrath of the U.S. Bankruptcy Court for the District of Delaware on the allowance of such claims.  (Judge Walrath also addressed other topics in her decision pertaining to the treatment of unimpaired creditors and postpetition interest, which will be examined in a separate post.)

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Beware of Post-Confirmation Bar Dates In Chapter 11 Plans

12/22/21

A recent decision reminds creditors of the harsh consequences of failing to comply with a court imposed deadline for filing claims in a bankruptcy case. The U.S. Court of Appeals for the Third Circuit recently held in Ellis v. Westinghouse that claims accruing after confirmation of a chapter 11 plan, but  before the plan goes effective, are subject to the administrative claim deadline established by the plan.

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Two Important Rulings on Payment of Indenture Trustee Fees in Chapter 11 Cases

11/29/21

Two recent judicial decisions, Sanchez Energy and Tribune Media, highlight the challenges faced by indenture trustees and their professionals in chapter 11 cases where there are no recoveries to noteholders. 

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When Consumers Get Notices About A Business’s Bankruptcy — When You Are Suddenly A Creditor.

03/07/18

My community was recently rocked by two businesses who were suddenly in Chapter 7 bankruptcy with unhappy clients and customers.   Chapter 7 bankruptcy for business is a very different process than when people file for

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Opinion in Altegrity Reinforces the Position of the Bankruptcy Court on “Claims”

11/29/16

On November 28, 2016, Judge Laurie Selber Silverstein of the Delaware Bankruptcy Court ruled on a motion for relief from the automatic stay (we she treated as a motion for relief from the discharge injunction) in the Altegrity bankruptcy, Case No. 15-10226.  The “Opinion” is available here.  The Opinion was issued following legal argument and, by agreement of the parties, based only upon undisputed facts.  Opinion at *1.

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