By: Michael D. Langford
Kilpatrick Townsend & Stockton LLP; Atlanta
The bankruptcy court in Geltzer v. Mooney (In re MacMenamin’s Grill Ltd.),[1] recently concluded that the safe harbor of § 546(e) of the Bankruptcy Code precluding avoidance of “settlement payments” does not apply to transfers made to shareholders of a privately held corporation.[2] A review of the background of the transaction is necessary to understand how the bankruptcy court reached this conclusion, a decision on its face at odds with three decisions in 2009 from Circuit Courts of Appeal.
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by: Lauren J. Grous
Saul Ewing LLP; Philadelphia
Do you sign proofs of claim on behalf of a client? Many young attorneys have done it early in their careers, either out of convenience or an eve-of-the-bar-date request of a client to file a proof of claim on its behalf, and likely have thought nothing of it. A recent opinion from the U.S. Bankruptcy Court for the Southern District of Texas in Duke Investments Ltd., et al. v. Amegy Bank N.A. (In re Duke Invs. Ltd.), Adv. No. 10-03577, [ECF. No. 94] (Bankr. S.D. Tex. June 17, 2011), discusses the potential problems that can arise from this seemingly simple act and urges attorneys representing creditors in bankruptcy cases to think twice about lending their autograph to Form B-10.
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by: Samuel R. Diamant
University of North Carolina School of Law; Chapel Hill
Distressed opportunity in the U.S. is shaping up to be the best opportunity in a lifetime. —John Paulson, February 2009[1]
As John Paulson, manager of New York-based hedge fund Paulson & Co., noted, even in a maligned economy there remains much opportunity for the investor with cash. Purchasers of distressed assets, commonly known as distressed investors, have become influential in corporate bankruptcy proceedings. A distressed investor seeks to purchase when the market value for the bankruptcy claim is below what the distressed investor views as the claim’s true value. Nearly any type of claim may be traded, providing liquidity to the seller, though likely at a discount to the distressed investor who purchases. Similarly, equity securities in bankruptcy may also be held or acquired by distressed investors.
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ABI has been busy this summer creating new online products with the goal of saving you time and resources. The newest addition to this lineup is Search - search.abi.org. This new member resource searches more than 2 million keywords across all the ABI information platforms. The search covers every issue of the ABI Journal since 1997 and every ABI Law Review since 1995, in addition to all books, CLE conference materials and other exclusive ABI content. This search feature is also available on your smartphone or tablet.
Get up-to-speed and in the know quickly with Search - search.abi.org.
ABI is pleased to announce the launch of another new product, materials.abi.org. At this new conference educational materials website members can sort resources dating back to 2005 by conference, speaker or keyword. Exclusively for our members, files will be downloaded to your device in PDF format. This new website is also accessible on your smartphone or tablet, and all documents are newly formatted to be compatible. Click here to view the new materials website.
ABI's Southwest Bankruptcy Conference was held in Las Vegas earlier this month, and resulted in several educational sessions of interest to the committee. Among the relevant sessions was "Think Before You File," which offered a variety of pointers to consider when assisting a client with deciding whether or not to file. Areas covered include making the most of your client intake meeting, requesting proper documentation, deciding which type of bankruptcy is best suited for the individual and credit counseling and ethics standard requirements. The session was moderated by John R. Bollinger of the Boleman Law Firm, PC in Richmond, Va. Panelists included August B. Landis of the Office of the U.S. Trustee, Hon. Michael K. Nakagawa of the U.S. Bankruptcy Court for the District of Nevada and Brian D. Shapiro of the Law Office of Brian D. Shapiro, all of Las Vegas. Click here to view "Think Before You File" educational materials.
Next, panelists for "Ethical Challenges Representing Committees" used the educational session to discuss Rule 2006 and the differences between case law before and after Universal Building Products. Attendees were also provided a hypothetical fact pattern and an appendix of related case law and studies. The session was moderated by Jeffrey N. Pomerantz of Pachulski Stang Ziehl & Jones LLP in Los Angeles. Panelists included Hon. Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware in Wilmington, Roberta A. DeAngelis of the Office of the U.S. Trustee in Philadelphia, Scott L. Hazan of Otterbourg, Steindler, Houston & Rosen, PC in New York and Larry H. Lattig of Mesirow Financial Consulting, LLC in Dallas. Click here to view "Ethical Challenges Representing Committees" educational materials.
Panelists for the session "Building Your Book of Business" offered suggestions on how to market yourself, giving pointers on topics such as creating your brand, thought leadership, networking, client development and creativity and how to balance practice with business development. Scott Y. Stuart of Donlin Recano and Company, Inc. in New York moderated the session. Panelists included Brett A. Axelrod of Fox Rothschild LLP in Las Vegas, Sheila T. Smith of Deloitte Financial Advisory Services LLP in Boston, J. Scott Victor of SSG Capital Advisors LLC in West Conshohocken, Pa. and Howard J. Weg of Peitzman, Weg & Kempinsky LLP in Los Angeles. Click here to view "Building Your Book of Business" educational materials.
"Financial Statements 101: Everything You Always Wanted to Know but Were Afraid to Ask" was a session used to discuss financial statements in a general review, the balance sheet, income and cash flow statements, footnotes and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization). An abundance of sample graphs, charts and statements were also provided. Nicole Horton of Ernst & Young Capital Advisors, LLC in Los Angeles moderated the session. Panelists included Hon. Charles G. Case, II of the U.S Bankruptcy Court for the District of Arizona in Phoenix, William K. Creelman of BDO Consulting in Costa Mesa, Calif., David K. Gottlieb of Crowe Horwath LLP in Sherman Oaks, Calif. and Mandy Townsend of Conway MacKenzie, Inc. in Las Vegas. Click here to view "Financial Statements 101: Everything You Always Wanted to Know but Were Afraid to Ask" educational materials.
Finally, panelists for the session "Tell It to Me Straight: Effective Advocacy Tips" provided attendees with useful suggestions for proper litigation, professional conduct and effective persuasion from the points of view of experienced litigators and judges. Candace C. Carlyon of Shea & Carlyon, Ltd. in Las Vegas moderated the session. Panelists included Hon. Bruce T. Beesley of the U.S. Bankruptcy Court District of Nevada in Reno, Robert J. Keach of Bernstein Shur in Portland, Maine, Robin E. Phelan of Haynes and Boone, LLP in Dallas and Hon. Gregg W. Zive of the U.S. Bankruptcy Court for the District of Nevada in Reno. Click here to view "Tell It to Me Straight: Effective Advocacy Tips" educational materials.