Introduction

Judge Kevin J. Carey, Chief Judge of the Delaware Bankruptcy Court, issued a decision recently in the S-Tran Holdings bankruptcy that addresses whether letters of credit constitute property of the bankruptcy estate.  The Court’s decision in S-Tran Holdings is worth review as letters of credit are a common part of a debtor’s pre and

Introduction

In recent months, bankruptcy auctions went forward in two different bankruptcy proceedings that illustrate the extent to which auctions can vary both procedurally and substantively. One auction involved the sale of a single asset and lasted less than an hour, while the second auction involved the sale of the debtor’s entire business and lasted

Introduction

On June 25th, the Debtors in the SemCrude bankruptcy present their Motion Approving Debtors’ Disclosure Statement (the “Motion”).  Debtors’ Motion provides a good opportunity to review the standards by which bankruptcy courts often measure the content of a debtor’s disclosure statement.  The following provides a summary of some of the frequently cited cases and

Introduction

Section 341 of the Bankruptcy Code requires the United States Trustee to “convene and preside at a meeting of creditors.”  Section 341(a) of the Code requires the trustee to convene what is commonly referred to as a “341 meeting” or “meeting of creditors” within a “reasonable time” after a debtor files for bankruptcy.  Bankruptcy

Introduction

On March 10, 2009, the Honorable Christopher S. Sontchi of the United States Bankruptcy Court for the District of Delaware issued a decision addressing the standard for preliminary injunctive relief in bankruptcy.  This post will look at the substantive and procedural issues considered by the Court in Broadstripe LLC v. National Cable Television Cooperative (In re Broadstripe). Specifically, when is injunctive relief appropriate in a bankruptcy proceeding and how does a party go about seeking injunctive relief under the Federal Rules of Bankruptcy Procedure?

Background

Broadstripe filed for bankruptcy in Delaware on January 2, 2009.  In July of 2000, eight years prior to filing for bankruptcy, Broadstripe joined the National Cable Television Cooperative ("NCTC") whereby NCTC agreed to negotiate master programming agreements for Broadstripe.  Under the programming agreements,  Broadstripe paid NCTC the licensing fees for programming services and NCTC distributed the funds paid by Broadstripe to various programmers (such as Fox, Disney, etc.).  In the months leading up to bankruptcy, Broadstripe failed to pay NCTC over $3.4 million in licensing fees.  However, after filing for bankruptcy Broadstripe paid NCTC all licensing fees incurred from the petition date forward. 


Continue Reading

Introduction

The Fairchild Corporation (“Fairchild” or the “Debtor”), filed for bankruptcy in Delaware on March 18, 2009.  Fairchild’s bankruptcy proceeding is before the Honorable Christopher S. Sontchi of the United States Bankruptcy Court for the District of Delaware.  According to its press release, Fairchild operates in three markets:  aerospace, real estate and motor cycle apparel. 

Introduction

Bankruptcy lawyers are sometimes asked how a business or individual can be required to defend a lawsuit in Delaware.  Typically, this issue arises when a debtor commences an adversary action, such as filing a preference complaint, and sues a defendant who has no ties to Delaware.  “How can they do this?” is a common

Introduction

Foamex International Inc. (“Foamex” or “Debtors”), located in Media, Pennsylvania, filed for bankruptcy in the United States Bankruptcy Court for the District of Delaware on February 18, 2009.  Foamex is one of the largest manufacturers of polyurethane and polymer foam products. (Read Foamex’s Declaration in Support of First Day Motions here).  Foamex generated