06/20/2012 - Weathering the Storm: Vitro’s Concurso Plan is Manifestly Contrary to Public Policy . . . at Least for Now
On June 13, 2012, the United States Bankruptcy Court for the Northern District of Texas (the “Bankruptcy Court”) published an opinion ruling on whether the Mexican Plan of Reorganization (the “Concurso Plan”) of the Mexican glass-manufacturing company, Vitro, S.A.B. de C.V., approved by the Federal District Court in Mexico, should be enforced under Chapter 15 of United States Bankruptcy Code.
01/09/2012 - Qimonda's Impact on Patent Licenses When a Licensor Goes Bankrupt in a Foreign Land
Can a U.S. patent licensee whose license has been rejected by a licensor under foreign law in a foreign bankruptcy rely on the protections of § 365(n) of the U.S. Bankruptcy Code? On October 28, 2011, the United States Bankruptcy Court for the Eastern District of Virginia issued an opinion addressing this in the Chapter 15 case of Qimonda AG (“Qimonda”).
01/09/2012 - The IP Beacon, January 2012
A Haynes and Boone Newsletter highlighting current issues in Intellectual Property Law.
11/08/2011 - Weathering the Storm: Qimonda, Patent Licenses and § 365(n)
On October 28, 2011, the United States Bankruptcy Court for the Eastern District of Virginia issued an opinion in the Chapter 15 case of Qimonda AG (“Qimonda”). The bankruptcy court held that the application of § 365(n) to executory licenses to U.S. patents was required to sufficiently protect the interests of U.S. patent licensees under Chapter 15 of the Bankruptcy Code and that the failure of German insolvency law to protect patent licensees was “manifestly contrary” to United States public policy.
09/20/2011 - Weathering the Storm: Living Will Requirement under Dodd-Frank
On September 13, 2011, the Board of Directors of the Federal Deposit Insurance Corporation (“FDIC”) unanimously approved a final rule implementing Section 165(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Rule”). The Dodd-Frank Rule requires (i) bank holding companies with $50 billion or more in assets and (ii) nonbank financial institutions, such as insurance companies and investment banks that are designated as “systemic” by the Financial Stability Oversight Council to create and submit “living wills.”
08/16/2010 - The Lehman and Charter Attack on Ipso Facto Clauses
Congress included five sections in the Bankruptcy Code that limit the enforcement of ipso facto clauses in a bankruptcy case (“Anti-Ipso Facto Sections”).
08/09/2010 - Cross-Border Insolvency: Chapter 15 and Avoidance Actions under Foreign Law
In a case of first impression, the United States Court of Appeals for the Fifth Circuit overruled the decisions of the United States Bankruptcy Court and the United States District Court for the Southern District of Mississippi and held that a chapter 15 proceeding may be used to pursue foreign law avoidance actions against defendants and assets in the United States.
05/03/2010 - Rule 2019 - It’s as Plain as the Nose on an Elephant's Face
Federal Rule of Bankruptcy Procedure 2019 requires every committee in a chapter 9 or chapter 11 bankruptcy case “representing” more than one creditor or equity security holder to file a verified statement containing certain disclosures, such as the amount of claims held by members of the committee, the dates the members acquired their claims and the amounts paid for the claims.
03/16/2010 - Sauce for the Goose? Dual Standard Emerging in Cross Border Insolvencies: Domicile Not Enough to Recognize Foreign Proceeding
Presented at the American Bankruptcy Institute 2009 Caribbean Insolvency Symposium on February 5-7, 2009. Will also be presented at the Practicing Law Institute's 32nd Annual Current Developments in Bankruptcy & Reorganization in New York City on April 19-20, 2010.
12/11/2009 - Weathering the Storm: Charter Communications Decision Allows Reinstatement of Debt
Many companies secured their financing several years ago when the credit market featured advantageous pricing and loose loan covenants. Because these favorable terms would be impossible for borrowers to obtain in today’s lending environment, many viable companies with highly leveraged capital structures are looking for strategies to restructure debt. Charter Communications (“Charter”), the country’s fourth largest cable television company, took a gamble during, arguably, the most challenging period in the modern era of global corporate finance. See how the company's bold moves paid off.
03/05/2009 - Chapter 15 of the U.S. Bankruptcy Code: New Procedures for Cross Border Insolvencies
The Bankruptcy Abuse, Prevention and Consumer Protection Act of 2005, which was signed into law in the United States on April 20, 2005 and became effective, for the most part, on October 17, 2005, creates a new chapter of the United States Bankruptcy Code (11 U.S.C. 101, et seq., as amended) (the “Bankruptcy Code”) – Chapter 15.
11/15/2007 - Welcome to the Jungle [of Claims Trading in Bankruptcy]
Presented at the 26th Annual Jay L. Westbrook Bankruptcy Conference in Austin, TX, November 15-16, 2007.
As a result of a growing number of investors interested in corporate takeovers, bankruptcy developed as a hot spot for mergers and acquisitions in the 1990s. This interest in acquiring claims against, or acquiring control of, distressed companies has resulted in the creation of a large market for the trading of claims against bankruptcy debtors.