Recharacterization

NCBJ 2021: Even the Circuits Can't Agree

10/10/21

 ABI Editor at Large Bill Rochelle hosted a group of three panels discussing three different legal issues. The issues included one legitimate circuit split, a dispute between lower courts and a divided state court panel.

Recharacterization

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Could Supreme Court Case on Debt Recharacterization Provide a Pathway Out of the Stern v. Marshall Maze?

07/20/17

The Supreme Court recently granted certiorari in PEM Entities LLC v. Levin, in which it will decide whether federal or a state law should apply when a debt claim held by a debtor’s insider is sought to be recharacterized in bankruptcy as a capital contribution and treated as equity.  The case raises important questions about the extent to which the commencement of a proceeding under the U.S.

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Winter 2014 Edition Of Bankruptcy Resource Now Available

01/02/14

I hope you had a wonderful holiday season and Happy New Year everyone.

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Winter 2014 Edition Of Bankruptcy Resource Now Available

01/02/14

I hope you had a wonderful holiday season and Happy New Year everyone.

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Ninth Circuit Opens The Door To Recharacterization Of Debt As Equity

05/08/13

In bankruptcy, prepetition loans made by insiders are often investigated, and sometimes challenged, by debtors, creditors' committees, or trustees.

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Summer 2012 Edition Of Bankruptcy Resource Now Available

07/26/12

The Summer 2012 edition of the Absolute Priority newsletter, published by the Bankruptcy & Restructuring group at Cooley LLP, of which I am a member, has now been released. The newsletter gives updates on current developments and trends in the bankruptcy and workout area.

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Winter 2012 Edition Of Bankruptcy Resource Now Available

02/13/12

The Winter 2012 edition of the Absolute Priority newsletter, published by the Bankruptcy & Restructuring group at Cooley LLP, of which I am a member, has recently been released. The newsletter gives updates on current developments and trends in the bankruptcy and workout area.

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Court Finds Recharacterization of "Loans" Depends on State Law

08/20/11
The Fifth Circuit has upheld a Texas bankruptcy court's order recharacterizing the ostensible debt of a non-insider as equity. Matter of Lothian Oil Incorporated, No. 10-50683 (5th Cir. 8/9/11). Unlike other circuits to consider the issue, the Fifth Circuit relied on Sec. 502(b) and Texas state law rather than the Court's equitable powers under Sec. 105. You can find the opinion here.
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Court Finds Recharacterization of "Loans" Depends on State Law

08/20/11
The Fifth Circuit has upheld a Texas bankruptcy court's order recharacterizing the ostensible debt of a non-insider as equity. Matter of Lothian Oil Incorporated, No. 10-50683 (5th Cir. 8/9/11). Unlike other circuits to consider the issue, the Fifth Circuit relied on Sec. 502(b) and Texas state law rather than the Court's equitable powers under Sec. 105. You can find the opinion here.
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