In a recent article, Mayer Brown’s Matthew Wargin, Aaron Gavant, Jade Edwards, and Lauren Wray examine a new iteration of coercive sanctions imposed on potentially “double dipping” foreign creditors in Latin American airline Avianca’s chapter 11 case in the Southern District of New York. Avianca sought to sanction over 150 foreign creditors, asserting that
Case Law
Opinion of Interest – In re Serendipity Labs, Inc.
The U.S. Bankruptcy Court for the Northern District of Georgia ruled in In re Serendipity Labs, Inc., 620 B.R. 679 (Bankr. N.D. Ga. 2020) that a debtor was ineligible to proceed under the newly enacted Subchapter V of Chapter 11, designed specifically for small businesses, because it was an affiliate of an “issuer” (as…
What We’re Reading This Week [November 30, 2020]
Reuters reports that the Brazilian government will forgive approximately US$1.3 billion worth of debt owed to it by telecommunications firm Oi SA, which has been involved in a pending bankruptcy proceeding in Brazil since 2016. [Reuters; Nov. 27, 2020]
Reporting from Bloomberg indicates that boutique apparel chain Francesca’s Holdings Corp. is preparing to file for…
Opinion of Interest – Henry Hobbs Jr. v. Buffets LLC
In Henry Hobbs Jr. v. Buffets LLC the United States Court of Appeals for the Fifth Circuit upheld the constitutionality of a recent increase in United States Trustees fees that are charged to Chapter 11 debtors. The decision overruled a decision by the bankruptcy court, which held that the fee increase resulted in the application…
Marblegate Under Attack! Or Not? Out-of-Court Bond Restructurings in Light of NY Court of Appeals Decision in CNH Diversified
Mayer Brown partners Sean Scott, Matt Wargin, and Aaron Gavant, counsel Craig Reimer, and associate Sam Rabuck discussed the recent decision in CNH Diversified Opportunities Master Account, L.P. v. Cleveland Unlimited, Inc. from New York’s highest appellate court, the Court of Appeals, and its potential impact on minority noteholder rights in connection with a strict…
What We’re Reading This Week [October 26, 2020]
The Wall Street Journal reports that the trailing 12-month default rate for U.S. corporate issuers of speculative-grade bonds and loans was 8.5% in September of 2020, which is below the 11.2% forecasted by credit rating agency Moody’s in April 2020. [WSJ; Oct. 26, 2020]
Reporting from Business Insider details how subscription streaming service Quibi is…
What We’re Reading This Week [August 31, 2020]
Houston, TX-based oil services provider SAExploration Holdings Inc. has filed for chapter 11 bankruptcy protection in the United States Bankruptcy Court for the Southern District of Texas, reports the Wall Street Journal. SAExploration reportedly owes $6.8 million on a unsecured loan it received through the Paycheck Protection Program of the CARES Act. [WSJ; Aug.…
What We’re Reading This Week [August 10, 2020]
Bloomberg reports on the growing use of chapter 11 bankruptcy by large retail tenants in order to negotiate their way out of costly, long-term leases and the potential downstream effects of this process on both the commercial real estate and commercial mortgage backed securities markets. [Bloomberg; Aug. 6, 2020]
Delaware Bankruptcy Court Addresses Shareholder Blocking Rights
Mayer Brown partners Tom Kiriakos and Sean Scott and associates Tyler Ferguson and Alexander Berk discussed a recent bench ruling from the United States Bankruptcy for the District of Delaware concerning shareholder blocking rights in an article available here.
What We’re Reading This Week [July 13, 2020]
British communications and satellite internet company OneWeb, which filed for bankruptcy earlier this year in the United States Bankruptcy Court for the Southern District of New York, has received a $1 billion bid to purchase the company out of bankruptcy, reports CNBC. If the sale is approved, the U.K government and Bharti Global, which…