We are happy to announce that, after receiving substantial interest from Secured Credit Committee (SCC) members, four new SCC leaders were appointed. Please congratulate Damian Schaible, Arnold Rosenberg, Mark Stingley and Terri Gardner on their new positions. (Their backgrounds and specific appointments are noted below.) We could not be more pleased to have such dynamic and capable individuals join Co-Chairs Doug Deutsch and Scott Avila and Education Director Stephen V. Falanga on the new SCC's leadership team.
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Davis Polk & Wardwell LLP; New York
Davis Polk & Wardwell LLP; New York
Davis Polk & Wardwell LLP; New York
The recent decision of Hon. Arthur J. Gonzalez in the chapter 11 cases of Chrysler LLC and its affiliated debtors recalls the oft-repeated maxim "be careful what you wish for." In re Chrysler LLC, et al., Case No. 09-50002 (AJG) (Bankr. S.D.N.Y. April 30, 2009). In the context of syndicated lending, lenders have "wished for" and contracted to enter into intercreditor agreements that appoint a single agent to act on behalf of the syndicate, usually subject to the consent of holders of a specified percentage of syndicated loans. Such agreements greatly reduce the costs of collective action and prevent individual lenders from negotiating preferential treatment for themselves at the expense of the rest of the syndicate. Who would not wish for such a quick, efficient and fair decision-making process?
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Debevoise & Plimpton LLP; New York
In a recent decision that caught the attention of many in the secured lending community, the U.S. Bankruptcy Court for the District of Montana equitably subordinated a $232 million secured claim arising from a loan made to the Yellowstone Mountain Club LLC, the developer of an exclusive golf and ski community in Montana, by a lending syndicate led by Credit Suisse.[1] Troubled by Credit Suisse's "predatory lending practices," the court subordinated the secured claim to the claims of Yellowstone's unsecured creditors, notwithstanding its determination that the loan was negotiated at arm's length. Despite its questionable reasoning, the decision may signal greater judicial scrutiny of the actions of secured lenders during the current economic crisis.
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The 5th Annual Mid-Atlantic Bankruptcy Workshop will be held August 6-8 at the Hotel Hershey in Hershey, Pa. This year's program will offer seven hours of CLE credit, networking opportunities and the region's best speakers who will cover all of the topics you need to know in this economic climate. In addition to the theme park, guests can take advantage of championship golf, a luxurious spa and all the amenities expected of a truly grand hotel. One of the sessions will be of great interest to the committee.
Panelists in the session "Anything but Bankruptcy! Redux: Nonbankruptcy Alternatives" will discuss how to sell senior secured notes and the evolution of laws concerning intangible property. Hon. Thomas P. Agresti of the U.S. Bankruptcy Court (W.D. Pa.) in Erie, Pa. will moderate. Panelists will include M. Colette Gibbons of Schottenstein, Zox & Dunn Co., LPA in Cleveland, Mark A. Gittelman of PNC Bank, NA in Philadelphia, Camille W. Hill of Bond, Schoeneck & King, PLLC in Syracuse, N.Y., Michael R. Lastowski of Duane Morris LLP in Wilmington, Del. and Nancy A. Valentine of Hahn Loeser & Parks LLP in Cleveland. Please click the links below to view relevant materials by Mr. Gittelman and Ms. Valentine.
Sales of Senior Secured Notes as a Bankruptcy Alternative
Selling General Intangibles and Other Unique Assets
