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Chicago - The Commercial Law League of America is
pleased to announce that former Chicago Mayor Richard M. Daley will present the
2013 CLLA Chicago/Spring Convention keynote presentation.
A former Cook County state's attorney and state senator, Daley
served as Chicago's longest-running mayor from 1989 to 2011. He currently holds
an of counsel position at international law firm Katten Muchin Rosenman LLP, is
a director at The Coca Cola Company and chairs JP Morgan Chase's Global Cities Initiative.
Daley's CLLA Chicago/Spring meeting keynote speech, "City CEO: Rising to Challenges
and Change," will identify unique advantages that the current global economy
presents.
The CLLA's annual



Posted 1 year 7 weeks ago

A 7th Circuit opinion authored by Chief Judge
Easterbrook last week had me again looking across the street at 203 North
LaSalle and wondering whether the US Supreme Court will ever finally decide
whether there is a "new value" exception to the absolute priority rule (which
requires that when an unsecured creditor class objects to a plan of
reorganization, it must be paid in full before junior claims or interests get
anything). 
The question of whether there's a "new value" exception
to the absolute priority rule (i.e., whether
old equity can contribute new capital and receive new equity interests in the
reorganized entity) was expressly left open by the US Supreme Court in Bank of America



Posted 1 year 7 weeks ago

by Bill Gray
In our last
post
we outlined the "ordinary course payment" legal defense against a bankruptcy preference claim. Now let's look at the "subsequent
new value
" defense in a bit more detail.



Posted 1 year 7 weeks ago

I have previously written about Crystal Cox, a
self-styled investigative blogger, who found herself on the receiving end of a
judgment for $2.5 million after she posted caustic comments about a bankruptcy
trustee.  You can find the prior post here.  
One aspect of the District Court's opinion which raised my eyebrows was the
court's stingy application of the media privilege. Under the
District Court's view, most bloggers would not be entitled to some of the
protections available to the professional media.   
Apparently I was not the only one who thought this to be
a strange result. UCLA



Posted 1 year 8 weeks ago

by Bill Gray
In our last post we outlined the legal defenses against a
bankruptcy preference claim
. Now let's look at the "ordinary course
payment" defense in a bit more detail.
An ordinary course payment is, essentially, when there
was nothing at all unusual or out of the ordinary pertaining to the payment at
issue. For example, prior to the look back preference period, a debtor always
pays invoices from a creditor within 30 days of receipt of the invoice.
Likewise, for all payments made within the preference look back period



Posted 1 year 8 weeks ago

Just in time for Valentine's Day, the court-appointed
bankruptcy trustee overseeing the aftermath of Bernard Madoff's $65 billion
Ponzi scheme has sought court approval to make a third
distribution
to victims.  Irving Picard, the bankruptcy trustee,
indicated his intention in today's court filing to make payments totaling over
$500 million on 1,103 claims, representing an average distribution of $457,800.
 If approved, the distribution would represent approximately 5% of each
customer's net equity claim.  Many will be happy to know that the proposed
distribution



Posted 1 year 8 weeks ago

After entity coverage began to be added to the D&O
insurance policy a couple of decades ago, a recurring problem in the bankruptcy
context was whether or not the D&O policy proceeds were property of the
estate under Bankruptcy
Code Section 541
(a) and subject to the automatic stay under Bankruptcy
Code Section 362
. The question arose because the directors and officers of
the bankrupt company wanted access to the insurance proceeds to fund defense
expense or settlements, but the bankruptcy trustee wanted



Posted 1 year 8 weeks ago

by Bill Gray
One of the most difficult conversations a bankruptcy
attorney can have with a client is to explain the concept of bankruptcy "preference claims".  The conversation often
arises when a client suddenly receives a letter (or worse yet, a lawsuit) in
which someone is demanding that the client give back a payment it received
several years ago from a company that subsequently filed bankruptcy.  "How
can that be!?" they ask.  "They paid me for goods or services we provided
to them, and they owed us the payments!"  "Why do I have to give them the



Posted 1 year 8 weeks ago

By nearly any measure, the Chapter 11 cases of Hawker Beechcraft and its affiliates
(the "Debtors") stand as a significant success. The cases began
as a standalone reorganization predicated upon a restructuring support
agreement (the "RSA")
among the Debtors' senior lenders and noteholders,
which soon thereafter gained the support of the creditors' committee. The
cases then switched over to a sale process, and



Posted 1 year 9 weeks ago

NEW YORK - (Mealey's) The brother of convicted Ponzi
scheme mastermind Bernard L. Madoff has agreed to pay more than $90 million to
settle claims that he participated in his brother's massive Ponzi scheme but
could escape any payment under a consent order filed Feb. 6 in a New York
federal bankruptcy court (Irving H. Picard v. Peter B. Madoff, et al. [In
re:  Bernard L. Madoff], No. 09-1503, S.D. N.Y. Bkcy.; See October
2011, Page 8).

Under the terms of the consent order, Peter B. Madoff
agreed to pay $90,390,500 in money that he does not have, but Bernard L. Madoff
Investment Securities LLC liquidation trustee Irving



Posted 1 year 9 weeks ago