Business Restructuring Review
In this issue:
- When Bankruptcy and Equity Collide: Has the Bankruptcy Code De-Fanged the Constructive Trust?
The Second Circuit refused to impose a constructive trust on proceeds from a settlement of reinsurance claims, noting that "retention by the bankruptcy estate of assets that, absent bankruptcy, would go to a particular creditor is not inherently unjust."
- New Cayman Islands Corporate Insolvency Law
The new rules are the Companies Winding- Up Rules 2008, the Insolvency Practitioners’ Regulations 2008, the Foreign Bankruptcy Proceedings (International Cooperation) Rules 2008, and the Grand Court (Amendment No. 2 Rules) 2008.
- Fourth Circuit Restores Bankruptcy Safe Harbor Protections for Natural Gas Supply Contracts That Are "Commodity Forward Agreements"
The court of appeals ruled that natural gas supply contracts with end users are not precluded as a matter of law from constituting "swap agreements" under the Bankruptcy Code.
- Creditor That Used Debtor as Mere Instrumentality Qualifies as Non-Statutory Insider in Preference Litigation
In a matter of first impression, the Third Circuit ruled that a creditor that used the debtor as a "mere instrumentality" to inflate its own revenues was a "non-statutory" insider for purposes of preference litigation.
- Section 1146 Redux: Piccadilly Cafeterias Not the Last Word After All on Chapter 11 Transfer Tax Exemption
A New York bankruptcy court ruled that the sale of a chapter 11 debtor’s rental properties that was approved prior to confirmation of a plan but would not close until after confirmation was exempt from transfer tax because the sale was necessary to the plan’s consummation.