Bankruptcy courts possess broad discretion to dismiss chapter 11 bankruptcy cases for “cause” under Section 1112(b) of the Bankruptcy Code. While the Bankruptcy Code enumerates a long (though non-exhaustive) list of instances when a case may clearly be dismissed for cause, courts generally agree that cases may also be dismissed under Section 1112(b) for the
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The Effective Use of Section 363 sales
When a company is not likely to survive a restructuring, its assets may have value to a third-party buyer. Absent legal protection, a buyer of a financially distressed business will usually be concerned that the company’s creditors could pursue the acquired business on various legal theories, including “successor liability,” and on that basis may decline…
Bankruptcy Round-Up: In The News
Members of the Bankruptcy, Reorganization and Capital Recovery Group at Greenberg Glusker have been turned to for their thought leadership by several news outlets this year. Here is a round-up of our activity thus far: Brian Davidoff was quoted in Law360 in the article “Bankruptcy Cases And Trends To Watch In 2023.” “While…
When it Comes to Assuming Executory Contracts, a Default is a Default; But the Equities Still Matter
The recent decision of the Ninth Circuit in In re Hawkeye Entertainment, LLC contains a few important takeaways with respect to the treatment of executory contracts and unexpired leases under section 365 of the Bankruptcy Code. First, for purposes of section 365(b)(1), the Ninth Circuit has established that a default does not need to be a…
Crypto Contagion
Cryptocurrency had a market cap of $10 million in early 2011; it rocketed to nearly $3 trillion in February 2022 and is now down to about $1.1 trillion today. Some of this year’s more notable gyrations in crypto’s fall from grace include the following:
- In May there was a decline of billions of dollars in value related
…
Vulnerability of Customers’ Crypto in Bankruptcy; Is Help on the Way?
The major cryptocurrencies have experienced significant declines in 2022; with the crypto market shedding $2 trillion of its peak $3 trillion market capitalization in November 2021. Amid this “crypto winter,” Terra Luna and its algorithmic stablecoin collapsed, triggering a domino effect of losses and illiquidity throughout the crypto industry. The hedge fund Three Arrows Capital…
Bankruptcy & Restructuring Roundtable Highlights
Bankruptcy – and the restructuring process – are challenging and complex endeavors, requiring a variety of tactics and resolution mechanisms. For the parties involved, financial expectations can be at odds with the reality of the situation, and knowing when to compromise and how best to proceed for your organization’s specific needs is essential. Due to…
Announcements from Our Group
Greenberg Glusker’s Bankruptcy, Reorganization & Capital Recovery Group is excited to share some announcements with our clients and colleagues. Firm News: We’re pleased to announce that Keith Patrick Banner was elevated to partner effective January 1, 2022. Keith focuses on business insolvency and distressed transactions with experience in a variety of industries, including retail, entertainment,…
Bankruptcy Venue Reform and Upcoming Conference Call to Discuss Proposed Bill
What do the Dodgers, American Apparel, Rubio’s Fish Tacos, California Pizza Kitchen, MGM Studios, and Pacific Sunwear have in common? Each is an iconic Southern California brand. But that’s not all they have in common. According to statistics, over the last 20 years 143 California based companies having over $32 billion in assets, and over 211,000 employees have…
The Dead (and Their Bankruptcy Estate) Cannot Hold Property Under Recent Ninth Circuit Bankruptcy Appellate Panel Decision
I recently had the pleasure of working with my colleagues Benny Roshan and Jillian Berk on an appeal before the Ninth Circuit Bankruptcy Appellate Panel (B.A.P), which tested the ever-evolving intersection between bankruptcy law and probate and trust law. In re Rens, __ B.R. __ , No. AP 19-90067-LA, 2021 WL 5049829 (B.A.P. 9th Cir.…