Business Reorganization

Bankruptcy Trends in the Gaming Field: Update of Winter Conference Materials

For those of you lucky enough to attend the Business Reorganization Committee’s excellent CLE panel at the Winter Leadership Conference in Tucson, Ariz., on gaming, destination resort and hotel chapter 11 cases, or to have purchased ABI’s CD-rom of 2002 Winter Leadership Conference educational materials, panelist Rudy Cerone has been kind enough to ass

Third Circuit Courts Continue Broad Definition of §510(b) “Damages”

In a recent decision, the U.S. District Court for the District of New Jersey, relying on the Circuit’s decision in In re Telegroup Inc., 281 F.3d 133 (3d Cir.

U.S. Trustee Crusade Against Indemnity and Exculpation Clauses in Financial Advisor Retention Agreements Yields Mixed Results

An admitted campaign by the Office of the United States Trustee to bar indemnity and exculpation provisions in retention agreements for financial advisors hired by trustees, debtors and committees is yielding some results in recent reported decisions.

Recent Decisions Limit §1146(c) Relief

Section 1146(c) of the Code provides that delivery of an instrument of transfer (such as a bill of sale or deed) “under a plan confirmed under §1129 of this title, may not be taxed under any law imposing a stamp tax or similar tax.” In some jurisdictions, courts include in §363 sale orders entered in chapter 11 cases, preconfirmation, a provision that the sale is not subject to transfer taxes under §1146(c) because the sale is in contemplation of a plan.

Business Reorganization Committee News

ABI’s Business Reorganization Committee will present a program at the Winter Leadership Conference in Tucson, Ariz., entitled “Emerging Issues In Hospitality, Entertainment Venue and Gaming Bankruptcies.” Panelists include Rudy J. Cerone, McGlinchey Stafford PLLC, Douglas Draper, Heller Draper Hayden Patrick & Horn LLC, and Linda F. Cantor, Pachulski, Stang, Ziehl, Young & Jones PC. The program will be part of the committee’s meeting on Dec. 6, 2002, at 8:00 a.m.

U.S. Trustee Crusade Against Indemnity and Exculpation Clauses in Financial Advisor Retention Agreements Yields Mixed Results

An admitted campaign by the Office of the United States Trustee to bar indemnity and exculpation provisions in retention agreements for financial advisors hired by trustees, debtors and committees is yielding some results in recent reported decisions. The attempt to generate a per se rule against a bankruptcy professional’s obtaining, as a term of his or her employment, indemnity or exculpation from the estate for his or her acts of negligence has been unsuccessful. In re Metricom Inc., 275 B.R. 364 (Bankr. N.D. Cal.

Recent Decisions Limit §1146(c) Relief

Section 1146(c) of the Code provides that delivery of an instrument of transfer (such as a bill of sale or deed) “under a plan confirmed under §1129 of this title, may not be taxed under any law imposing a stamp tax or similar tax.” In some jurisdictions, courts include in §363 sale orders entered in chapter 11 cases, preconfirmation, a provision that the sale is not subject to transfer taxes under §1146(c) because the sale is in contemplation of a plan.

Post-confirmation Conversion from 11 to 7: What’s in the Estate?

A problem that continues to divide the courts is what, if any, assets are in the chapter 7 estate when a chapter 11 case is converted to a chapter 7 case after confirmation of a plan of reorganization in the chapter 11 case. The problem arises because §1141(b) and typical plan language provide for vesting of assets in the reorganized debtor and the “disappearance” of the chapter 11 estate upon confirmation.

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