Business Restructuring Review

November/December 2009 Jones Day Publications

In this issue:

Good Tidings for Claims Traders: Second Circuit Rules That Purchased Administrative Claims Not Disallowed by Operation of Section 502(d)
Addressing the matter before it as an issue of first impression, the court of appeals held that section 502(d) of the Bankruptcy Code does not mandate disallowance, either temporarily or otherwise, of administrative claims acquired from entities that allegedly received voidable transfers.
TOUSA Ruling Bad News for the Savings Clause
In the first test in the bankruptcy courts of the enforceability of savings clauses in "upstream guarantees," a Florida bankruptcy court set aside as fraudulent conveyances obligations incurred and liens granted by guarantor subsidiaries of the debtor.
Newsworthy
Focus Abroad—The Retail Sector: Restructuring Options in the Current Climate in the U.K., France, and Germany
An examination of the health (or otherwise) of the retail sector in the U.K., France, and Germany and the restructuring tools available in each country to deal with struggling retail businesses.
Fifth Circuit Rules That Creditor Has Standing to Seek Sanctions for Automatic Stay Violation
Addressing the issue as a matter of first impression, the court of appeals held that a creditor may seek an award of damages under section 362(k), provided that its claim is direct rather than derivative of the bankruptcy estate.
It’s About Time: New Amendments to the Federal Rules of Bankruptcy Procedure Revise Time Periods
Changes to the Bankruptcy Rules became effective on December 1.
Chapter 15 Four-Year Update: Rising Prominence of Section 363 Sales Not Confined to Chapter 11
A New Jersey bankruptcy court’s ruling may portend an emerging trend: the increasing reliance of foreign representatives in chapter 15 cases upon section 363(b) sales as an expeditious way to sell a foreign debtor’s U.S. assets.
New Amendments to Canadian Insolvency Law Take Effect A major package of reforms to Canada’s Bankruptcy and Insolvency Act and Companies’ Creditors Arrangement Act came into force on September 18, 2009.