Bankruptcy and Corporate Restructuring co-chair Scott Markowitz wrote a New York Law Journal article, “The Bankruptcy Times They Are Changing: Real Estate Developers Beware,” which appeared in the publication’s special report on Corporate Restructuring and Bankruptcy. The article explores some of the significant trends Scott has seen over the last 30 years that he has been representing middle-market debtors in Chapter 11 cases in New York City with respect to what the Bankruptcy Code denominates as “single asset real estate” cases.
On May 20, 2019, the U.S. Supreme Court issued a long-awaited and important decision in Mission Product Holdings, Inc. v. Tempnology, LLC, 587 U.S. __ (2019) (the Supreme Court decision), resolving a split amongst various Circuit courts concerning the impact of rejection of trademark licenses by debtor-licensors in a bankruptcy case.
In 2018, the First Circuit in Mission Product Holdings, Inc. v. Tempnology, LLC, 879 F.3d 389 (1st Cir. 2018) (the Tempnology Decision) decided that trademark licensees lost their rights under a trademark license when the chapter 11 debtor-licensor rejected the trademark license between the parties. This decision by the First Circuit conflicted with another circuit court decision from the Seventh Circuit, leading the U.S. Supreme Court to resolve the conflict amongst the circuits regarding the rights of a licensee in a trademark that is rejected by a debtor-licensor in a bankruptcy case.
Tarter Krinsky & Drogin’s Bankruptcy & Corporate Restructuring Group recently completed its successful representation on behalf of The Brown Publishing Company Liquidating Trust, which was created several years ago in connection with the confirmed bankruptcy plan of The Brown Publishing Company and its affiliated debtors in the Bankruptcy Court for the Eastern District of New York (E.D.N.Y.).
One of the most controversial bankruptcy court cases of the past year was Fisker Automotive Holdings, Inc. ("Fisker") decided in Delaware. Many investors have feared the Fisker decision would forever change the market for the strategic acquisition of secured debt. However, Fisker should only be read in the context of the particular facts and circumstances of that case.
This article addresses the two types of fraudulent transfers - actual fraud and constructive fraud and provides guidance on how best to protect yourself against the risk of possible fraudulent transfer litigation.
As most investors know, you can obtain a great deal purchasing assets out of a bankruptcy estate. But do you want to be the first interested party to negotiate and enter into a purchase agreement? Do you want to be the party that conducts all of the due diligence and sets the minimum purchase price?
This article addresses issues to consider when purchasing real estate assets in bankruptcy including other parties with rights to the property, which leases or other interests may exist, and the intentions of current tenants and other parties in interest.
Bankruptcy can be an important financial tool. Through the Chapter 11 process, bankruptcy can allow a company to restructure its debt and become a more efficient and profitable business, without the threat of looming creditors. There are many benefits to a Chapter 11 proceeding. For example a corporation’s existing management can stay in control of the business as a Debtor in Possession (DIP) as long as it continues to exercise reasonable business judgment and does not act in an incompetent or fraudulent manner.