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In a World of Reimagination: A New York Bankruptcy Court Rejects a Creditor’s Hindsight Approach to the Critical Vendor Defense
In Devices Liquidation Trust v. KMT Wireless LLC (In re Pers. Commc’ns Devices LLC), the U.S. Bankruptcy Court for the Eastern District of New York denied a critical vendor’s motion for summary judgment that advocated for a “hindsight extrapolation” approach to the critical-vendor defense.[1]
Creditors Can Do Business with Cannabis Companies and Still Reorganize Under Chapter 11 (At Least in the Ninth Circuit)
The value of the legitimate cannabis industry in the U.S. (measured by annual sales) is rapidly approaching $10 billion and is expected by some to exceed $20 billion within the next five years. As the market grows, companies that do not grow or sell cannabis are nonetheless doing business with some that do. Media companies are running advertisements for dispensaries, agricultural-equipment manufacturers are selling machinery to cannabis growers and lawyers, and accountants and other professionals are providing services to clients directly involved in the industry.
Contract Assumption – A Potent Defense to Preferences and Fraudulent Transfers
Bankruptcy attorneys are familiar with the statutory defenses to preferences and fraudulent transfers. Less familiar is the so-called “contract assumption defense.” Courts have employed that non-statutory defense to bar preferences and fraudulent transfers based on three primary arguments:
2017 Winter Leadership Conference - Plan Issues Facing Secured And Unsecured Creditors
Hosted by the Secured Credit and Unsecured Trade Creditors Committees. Unsecured trade creditors and secured creditors confront similar plan analysis issues, including gerrymandering, vote incentivization schemes, drop dead provisions, and golden shares. The panel will discuss some of those “creative” plan provisions and interesting confirmation issues that impact both secured and unsecured creditors.
Committee Webinar - Navigating Health Care Bankruptcies to Maxamize Creditor Recoveries
The panelists for this webinar will discuss the various types of health care cases and the competing interests that arise from a number of perspectives, including debtor, creditor, and provider-side interests. The panel will provide an overview of the uniqueness of bankruptcy health care cases and identify proven strategies to assist practitioners to guide unsecured creditors through these difficult and often complex reorganizations.