Zone of Insolvency

Zone of Insolvency

Category Archives: US

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The use of mediation to improve global restructuring outcomes in a post-pandemic world

Posted in Australia, Financial Restructuring & Insolvency, Global, Singapore, UK, US
Jurisdictions across the world have been seeking to simplify their domestic insolvency processes and create flexible restructuring alternatives to enable viable entities experiencing financial distress to have better prospects of recovery. In an article co-authored by Scott Atkins and Debra Grassgreen and published in the Global Restructuring Review, the authors discuss the potential uses of mediation… Continue Reading

2021 World Bank & INSOL International’s Legislative & Regulatory Group: COVID-19 response and the challenges ahead

Posted in Australia, Canada, Europe, Latin America, Singapore, UK, US
This article was first published on the Private Sector Development Blog on July 27, 2021. The article is co-authored with Mahesh Uttamchandani (Practice Manager, Financial Inclusion, Infrastructure & Access in the Finance, Competitiveness, and Innovation Global Practice, World Bank Group) and Andrés F. Martínez (Chair, World Bank/INSOL International Legislative and Regulatory Group). COVID-19 continues to… Continue Reading

Global bankruptcy financial restructuring and insolvency group releases the Q3 2021 issue of International Restructuring Newswire

Posted in Australia, Canada, Europe, Latin America, UK, US
Our global bankruptcy financial restructuring and insolvency team has released its quarterly International Restructuring Newswire. In this issue, our team examines the impact of the COVID-19 pandemic on the global restructuring market and the reform of legal framework that governs restructurings in Italy, Hong Kong, mainland China and Australia. Also, we are pleased to announce the appointment of… Continue Reading

So Many Troubled California Health Care Districts, So Many Have Filed Chapter 9—Lessons To Be Learned

Posted in US
With the increasing financial pressures on California hospitals in general, and rural hospitals in particular, it is likely that growing numbers of California health care districts will seek chapter 9 protection in the future. For further discussion on the challenges facing California health care districts you can read the Article which was featured in California Bankruptcy… Continue Reading

Global bankruptcy financial restructuring and insolvency group releases the Q2 2021 issue of International Restructuring Newswire

Posted in Australia, Canada, Europe, Latin America, UK, US
This issue of the International Restructuring Newswire surveys recent developments in no fewer than five countries. In the United States, on the 15th anniversary of the enactment of the Model Law on Cross-Border Insolvency as Chapter 15, we present our annual survey of new case law in the US. These decisions have far-reaching influence in the… Continue Reading

Norton Rose Fulbright’s global insolvency chair is conference chair of INSOL International’s Latin America Virtual Seminar

Posted in Latin America, US
Global Head of Financial Restructuring and Insolvency Howard Seife is conference chair of INSOL International’s Latin America Virtual Seminar, which will cover the latest news and developments in cross-border restructurings in Latin America. The seminar will run over three different dates—March 4, March 11 and March 18. INSOL International is a global federation of lawyer… Continue Reading

Litigation trends survey

Posted in Australia, Canada, Europe, Singapore, UK, US
Fieldwork for Norton Rose Fulbright’s sixteenth annual litigation trends survey was conducted in December 2020, providing up-to-date insights on key US disputes trends across a tumultuous year and a look ahead into 2021. View our sixteenth annual litigation trends survey here for insights from 183 corporate counsel on disputes trends, the impact of COVID-19 on… Continue Reading

Contagion liability risk in the United States and Australia for parent entities arising from the insolvency of a subsidiary

Posted in Australia, US
With the influx of insolvency cases expected on a global basis in coming months as government support measures are wound back, now is an opportune time for businesses to consider the extent of their potential exposure if a subsidiary liquidates. In particular, can losses be isolated within a liquidating subsidiary, or will there be a contagion… Continue Reading

Global financial response to the COVID-19 crisis

Posted in Bankruptcy Courts, Involuntary Bankruptcy, US
We have launched our interactive cross-border guide to the financial support on offer to businesses during the COVID-19 crisis and considerations for banks, corporates and directors trading through the turmoil. We also look at some of the issues being considered in the lending market as well as changes in insolvency law, reviewable transactions and tips… Continue Reading

Opposing the National Bankruptcy Conference’s proposal to legislatively repeal Fairfield Sentry

Posted in US
On August 20, 2018, the National Bankruptcy Conference (the “NBC”), a group of bankruptcy judges, professors, and professionals that has consulted with Congress on the drafting of the U.S. Bankruptcy Code, sent a letter to Congress proposing a series of amendments to Chapter 15, which governs the process for obtaining recognition of a foreign insolvency… Continue Reading

English Court of Appeal affirms application of the “Gibbs Rule” in a cross-border restructuring

Posted in Australia, US
Under the English common law rule known as the “Gibbs rule,” a contractual obligation can be changed or discharged only in accordance with the law governing that obligation. Consequently, a debt governed by English law may not be discharged in a foreign insolvency or under a foreign restructuring plan unless the creditor submits to the… Continue Reading

Eleventh Circuit rules doctrine of equitable mootness applies in chapter 9

Posted in US
On August 16, 2018, the United States Court of Appeals for the Eleventh Circuit issued an opinion in the chapter 9 case of Jefferson County, Alabama, reversing the decision of the District Court and ruling that the doctrine of equitable mootness applies in municipal bankruptcies. In Jefferson County’s chapter 9 case, the bankruptcy court confirmed… Continue Reading

In a 5-4 decision, SCOTUS levels the retail playing field

Posted in US
Brick and mortar retail businesses have been experiencing financial distress, with retail defaults at an all time high. In 2018 alone, there have been over a dozen retailers filing for bankruptcy protection, several of which, including Toys “R” Us and The Bon-Ton Stores, have been forced to liquidate. However, while many traditional “mall tenants” and… Continue Reading

SCOTUS Determines That 546(e) Safe Harbor Does Not Protect Transfers Where Financial Institution Is A Mere Conduit

Posted in US
In a decision significantly impacting the ability of a plaintiff to prosecute avoidance actions, the United States Supreme Court, in Merit Management Group, LP v. FTI Consulting, Inc., 583 U.S. ___ (2018), unanimously held that a transfer of funds, where a financial institution served as a mere conduit, does not entitle the recipient of the… Continue Reading

First Circuit Weighs in on Scope of Intellectual Property Protected by Bankruptcy Code Section 365(n)

Posted in US
In a decision last month, the First Circuit maintained the relatively narrow scope of protection provided to intellectual property licensees upon rejection of a license in bankruptcy. Focusing on the statute’s language, the court of appeals held that Bankruptcy Code section 365(n) fails to protect either a trademark license or exclusive distribution rights of a… Continue Reading

Contract Provisions Do Not Override Distribution Provision of an Italian Restructuring Plan

Posted in US
U.S. companies that engage in business in multiple jurisdictions should be mindful of a recent decision by the United States Bankruptcy Court for the District of Delaware. In the Chapter 15 case of Energy Coal S.P.A., the bankruptcy court held that U.S. choice of law and forum selection provisions in a contract with a non-U.S.… Continue Reading

So. Cal. Luxury Real Estate Developer Woodbridge Group Files Chapter 11 Case

Posted in US
Woodbridge Group of Companies, a luxury real-estate developer, filed for chapter 11 reorganization on December 4, 2017.  Woodbridge and its 200-plus affiliates operated a sprawling, complex real estate enterprise that focused on the acquisition and development of high-end properties. Although the company estimates the value of its properties to be nearly $1 billion, it asserts it… Continue Reading

Second Circuit Adopts “Efficient Market” Approach to Calculate Cramdown Interest

Posted in US
Last week, the Second Circuit established an “efficient market”-based approach for calculating cramdown interest rates. Adopting a test established by the Sixth Circuit, the Second Circuit held that courts must apply a market interest rate where an efficient market exists. See Momentive Performance Materials Inc. v. BOKF, NA (In the Matter of: MPM Silicones, L.L.C.),… Continue Reading

Good News/Bad News in Keeping Affiliates out of Bankruptcy

Posted in US
A bankruptcy filing by one company does not necessarily mean that its affiliates will also file for bankruptcy. It is common for a financially distressed company to file for bankruptcy while its financially sound affiliates continue business operations in the ordinary course. The bad news, however, is that a court may disregard a company’s decision not… Continue Reading