by Steve Krause
Davis Polk & Wardwell LLP; New York
In bankruptcy, a debtor often faces assessments for interest and penalties on property taxes from a variety of taxing jurisdictions. Addressing these claims can be frustrating and time-consuming. Frequently, the most confusing assessments are those for tax periods that straddle the petition date: Is the entire tax post-petition and thus entitled to administrative-expense treatment under § 503(b)(1)(B) of the Bankruptcy Code? Is the tax all pre-petition and thus a pre-petition unsecured claim entitled to priority status under § 507(a)(8)? Is the tax split according to the pre-petition and post-petition periods? The difference is important because administrative-expense claims must be paid in full before payment may be made on pre-petition unsecured claims, and administrative-expense claims may also be entitled to penalties and interest.
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by Patricia A. Redmond
Stearns Weaver Miller Weissler Alhadeff & Sitterson, P.A.; Miami
by Jessica D. Gabel
Georgia State University College of Law; Atlanta
The Limited Liability Company (“LLC”) is the secret agent of business entities. Part corporation, part partnership, this hybrid business entity enables its members and managers to take advantage of both the limited liability afforded to shareholders and directors of corporations and the pass through tax advantages available to partnerships. It is precisely this mongrel version of a business – occupying the twilight between corporation and partnerships – that leads to unpredictable and inconsistent treatment in the courts. A recent decision from the Florida Supreme Court, Olmstead v. Federal Trade Commission, [1] epitomizes the serpentine tangle surrounding LLCs.
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ABI's Winter Leadership Conference Educational Materials
In December 2010, at the 22nd Annual Winter Leadership Conference, the Business Reorganization Committee made a joint presentation with the Asset Sales Committee. The presentation was titled "Environmental Issues in Chapter 11 Sales and Reorganizations," and touched on topics such as state environmental laws, timing issues, asset sales and reorganizations. Presenters included Christopher R. Mirick, Moderator, of Cadwalader, Wickersham & Taft LLP in New York; Pierre G. Armand of the U.S. Department of Justice in New York; James Redwine of AlixPartners LLP in Baton Rouge, La.; and Adam P. Strochak of Weil, Gotshal & Manges LLP in Washington, D.C.
Environmental Issues in Chapter 11 Sales and Reorganizations
Another WLC session of interest was "Where the Rubber Meets the Road: Proofs of Claim, Claims Objections and Amendments to Rules 3001, 3002," presented by Lawrence R. Ahern, III, Moderator of Burr & Forman LLP in Nashville, Tenn; Patti H. Bass of Bass & Associates, PC in Tucson, Ariz.; Hon. C. Ray Mullins of the U.S. Bankruptcy Court (N.D. Ga.), Atlanta; and John Rao of the National Consumer Law Center in Boston. This panel focused on claims in recent caselaw, as well as real estate and environmental claims issues in recent caselaw.
Where the Rubber Meets the Road: Proofs of Claim, Claims Objections and Amendments to Rules 3001, 3002
ABI will be partnering with UTLAW and AIRA to sponsor VALCON2011 at the fabulous Four Seasons Hotel in Las Vegas, February 23-25. VALCON focuses on the dealmakers in the distressed debt, restructuring and valuation businesses, and is specifically geared towards dealmakers, fund investors, or financial and legal advisors. With up to 15/18 hours of CLE/CPE credits available, this is not an event to miss!
Click here to register.
