(American Bankruptcy Institute, 2009)
Skadden, Arps, Slate, Meagher & Flom LLP; Wilmington, Del.
Have you ever wanted to get in on the ground floor of an emerging opportunity? Well, in case you weren't there when fire was discovered, you now have a second chance in the new ABI publication, Handbook on Second Lien Loans & Intercreditor Agreements, written by Mark N. Berman and Jo Ann J. Brighton. The subject of this beginner's handbook is concededly beyond the common experience of many new practitioners, but second lien loans are an increasingly common form of financing that restructuring professionals are likely to encounter frequently in practice both now and in years to come. Practitioners who therefore undertake to learn the language and complexities of second lien financing now will find themselves well-positioned to provide cutting edge advice to debtors and lenders alike as second lien financing issues take center stage in regular chapter 11 practice.
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The Garden City Group, Inc.; Chicago
In ASM Capital LP v. Ames Dept. Stores Inc. (In re Ames Dept. Stores Inc.), No. 07-1362, 2009 WL 2972510 (2d Cir. Sept. 18, 2009), the Second Circuit considered “whether section 502(d) of the Bankruptcy Code, which bars allowance of certain claims filed against the debtor’s estate by alleged recipients of preferential transfers, also bars allowance to such a claimant of postpetition administrative expenses pursuant to section 503(b) of the Bankruptcy Code.” Ames Dept., 2009 WL 2972510 at *1. In ruling that no such bar exists, the Second Circuit vacated the lower courts’ decisions.
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Proskauer Rose LLP; New York
With the greatest financial crisis in a century roaring full steam ahead with no end in sight, bankruptcy filings are up as well as §363 sales. Sales pursuant to §363 of the Bankruptcy Code have become more common than traditional plans of reorganization in bankruptcy cases. As a consequence, senior secured lenders have enforced their right to credit bid in such §363 sales. The majority of the case law involves the rights of secured lenders and a secured lender’s ability to credit bid. However, a recent decision in the U.S. Bankruptcy Court for the District of Delaware, In re Electroglas Inc.,[1] discussed the issue of whether noteholders may credit bid. Judge Walsh held that noteholders may not credit bid, either directly or indirectly, their portion of the notes or all of their notes.[2] The court examined the provisions of the indenture to reach its decision.
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ABI's 21st Annual Winter Leadership Conference will take place Dec. 3-5 at the gorgeous La Quinta Resort & Club in La Quinta, Calif. This year's conference will offer insights from some of the top insolvency and restructuring experts on issues confronting the profession in 2010.
The Young & New Members Committee will partner with the Business Reorganization Committee to present a session entitiled "Fixing Broken Not-For-Profit Entities: Just Because You Don't Have to Pay Taxes Doesn't Mean You Don't Have to Make Money" on Friday, Dec. 4 at 3:45 p.m. Panelists will discuss confirmation issues for nonprofits, conversion statutes and the manner in which charitable gifts are handled for the nonprofit sector. Panelists will include Robert J. Feinstein of Pachulski Stang Ziehl & Jones LLP in New York, Matthew W. Levin of Alston & Bird LLP in Atlanta and Andrew M. Troop of Cadwalader, Wickersham & Taft LLP in New York. Please click the link below to view the materials.
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