Maintaining Cash Reserves While Dealing with Revised §366 of the Bankruptcy Code
by Joseph A. Malfitano, Young Conaway Stargatt & Taylor LLP
The ability of chapter 11 debtors to maintain cash reserves is about to get harder. Hurricanes Katrina and Rita have put a dent in the entire nation's economy and likely will have a significant impact on corporate profits for at least the rest of this year. The storms devastated one of the most critical regions in the country for energy production and already have claimed responsibility for record-high prices for gasoline, heating oil, jet fuel and other products. Economists are predicting that energy prices this winter could double or triple. Some corporations have already been put on notice by their energy suppliers that pricing could increase by 100 to 250 percent depending on the timing for restoration of the Gulf refineries.
As widely reported, Congress recently enacted the most comprehensive set of amendments to the Bankruptcy Code 1978.
Judicial Update
July - September 2005
by Ian Fredericks, Young Conaway Stargatt & Taylor LLP
Below are summaries of cases that I thought members of the committee may find interesting. The summaries appear in date order beginning in July. Please contact me at ifredericks@ycst.com with any suggested areas of the law that members would prefer that I focus on, including consumer or business and legal areas of importance (i.e., retention, compensation, plan process, etc.).
Agenda for the 2005 Winter Leadership Conference
The Financial Advisors Committee will present a joint panel with the Bankruptcy Litigation and Professional Compensation Committees at the Winter Leadership Conference on Saturday, December 3. These three committees will present a mock trial of an objection to final professional fees and a program on changes important to our committees under the new law. The mock trial will be presented in two parts, scheduled for 9:30 and 11:15 a.m.
Things to Look For in Future Newsletters
Judicial Update
Each Update will include summaries of reported decisions from across the country that could directly or indirectly impact financial advisors in the bankruptcy context.
Articles
The Financial Advisors Committee welcomes articles from all ABI members. In order for an article to be included in the newsletter, the subject matter of the article must include information that members of this committee would find useful in their practice. Please forward any articles or other submissions to Ian Fredericks.