Section 365(h) of the Bankruptcy Code provides tenants special protections in the event their landlord files for bankruptcy, by giving tenants the option of retaining their possessory rights under their leases, notwithstanding the landlord’s rejection of such leases. A question that has divided courts across the county is what happens to a tenant’s possessory interest … Continue Reading
The latest turn in the ongoing Petters bankruptcy saga came on June 11, when U.S. Bankruptcy Judge Gregory Kishel issued a 46-page order examining 2012 amendments to the Minnesota Uniform Fraudulent Transfer Act (MUFTA). Specifically, Judge Kishel reviewed whether the MUFTA amendments created a complete defense and barred the Petters trustee’s avoidance claims against several … Continue Reading
Any business executive worth her salt will admit that timing is everything in business. Launch a product before consumers are ready to try something new or enter a market after the niche is saturated and even the best business plan is unlikely to see you through. The ongoing RadioShack bankruptcy is a good illustration of … Continue Reading
This blogger fondly remembers the RadioShack cassette player/recorder her great-grandmother gave her in the late 1970s. Cutting-edge technology at the time, the gadget allowed traveling musical entertainment and roving recording, a level of freedom that I have maintained through the years right down to my smartphone and Bluetooth headset. So like many others, I greeted … Continue Reading
A recent decision out of the First Circuit Court of Appeals illustrates the importance of the value of the collateral of creditors with fulcrum security, as that value relates to creditors’ rights to pendency interest. In re SW Boston Hotel Venture, LLC, et al. involved a failed construction project by SW Boston Hotel Venture, LLC … Continue Reading
The chapter 11 case of In re Hyatt out of the Bankruptcy Court for the District of New Mexico illuminates a debtor’s use of claim classification to allocate creditors different recoveries under a liquidating plan. While this debtor was ultimately successful in getting its Disclosure Statement approved by the Bankruptcy Court, this strategy ultimately hinges … Continue Reading
