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I Really Can’t Stay: Supreme Court Clarifies Scope of Bankruptcy Automatic Stay

The United States Supreme Court has issued an opinion that clarifies the extent to which the automatic stay imposes obligations on creditors that seized their debtor’s property pre-petition and resolves a broad split among the circuit courts. The decision, City of Chicago v. Fulton, provides protection for creditors but adds to the burdens faced by…

Client Alerts | January 20, 2021 | Creditors’ Rights and Bankruptcy Litigation

BAM! Madoff Defendants Socked with Substantial Prejudgment Interest

A recent decision from a New York bankruptcy court provides guidance on how federal courts may approach requests for prejudgment interest in fraudulent conveyance cases. The decision, Picard v. BAM LP, highlights a risk faced by defendants in litigation of lengthy duration and provides practical guidance on how federal judges may exercise their discretion regarding…

Client Alerts | January 4, 2021 | Creditors’ Rights and Bankruptcy Litigation

Not Just the Usual Suspects: Court of Appeals Allows Lender’s Suit Against Parties that Financed Hostile Bankruptcy

A recent decision by the New York Court of Appeals adds teeth to the ability of real estate lenders to dissuade borrowers from filing bankruptcy and highlights the risks faced by borrowers that choose bankruptcy – and those that assist them. The decision, Sutton 58 Associates LLC v. Pilevsky, permits a lender to pursue a…

Client Alerts | December 10, 2020 | Creditors’ Rights and Bankruptcy Litigation | Real Estate Litigation | Financing

The Trustee Strikes Back: Greektown Decision May Limit Safe Harbor Defenses

A recent decision from a Michigan bankruptcy court shows potential limits to Safe Harbor defenses to clawback actions and may provide new hope to trustees and other clawback plaintiffs that seek to push back against defendant-friendly decisions in the Second Circuit. The decision, In re Greektown Holdings, LLC, highlights the importance of appropriately and carefully…

Client Alerts | December 8, 2020 | Creditors’ Rights and Bankruptcy Litigation

IBOR Transition – IBA Announces Plan For Key USD LIBOR Tenors Beyond 2021

The ICE Benchmark Administration (“IBA”) announced earlier this week that it will consult on its intention to extend publication of the overnight and one-, three-, six-, and 12-month USD LIBOR rates until June 30, 2023. The June 2023 extension, however, applies only to legacy contracts—no new USD LIBOR contracts will be permitted after 2021.1 The…

Client Alerts | December 3, 2020 | Commercial and Corporate Litigation | Derivatives | Hedge Funds | Risk Management

Tax Issues and Planning to Consider Before Year-End 2020

November 2020 This annual newsletter briefly highlights certain tax issues and planning that hedge fund managers (and other high-net-worth individuals) should consider (or reconsider) before year-end. Although year-end tax planning is always important, the potential increase in tax rates in 2021 makes it even more important this year-end. The election may be over, but uncertainty…

Client Alerts | November 10, 2020 | Business Advice and Planning | High Net Worth Individual Planning | Hedge Funds | Private Equity Funds | Planning for Fund Managers

SEC Expands the Definition of Accredited Investors: Action Required

On August 26, 2020, the Securities and Exchange Commission (the “SEC”) adopted previously proposed amendments (the “Amendments”) that expand the definition of “accredited investor” (or “AI”) applicable to private placements under Regulation D, and the definition of “qualified institutional buyer” (or “QIB”) under Rule 144A, each under the Securities Act of 1933, as amended (the…

Client Alerts | November 9, 2020 | Investment Management | Securities and Corporate Finance

LIBOR Transition – ISDA Prepares to Launch 2020 IBOR Fallbacks Protocol and Supplement

Following a favorable review from the Antitrust Division of the U.S. Department of Justice, the International Swaps and Derivatives Association (“ISDA”) announced on October 9, 2020 that it intends to publish a protocol, along with updates to its standardized documentation to provide for fallback rates and procedures to account for the potential discontinuation of certain…

Client Alerts | October 19, 2020 | Derivatives | Investment Management

SEC Proposes New “Finder” Exemption Registration

In an effort to assist small businesses raise capital, on October 7, 2020, the Securities and Exchange Commission (the “SEC”) voted to propose a new limited, conditional exemption (the “Proposed Exemption”) from the broker-dealer registration requirements of Section 15(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) for natural persons who…

Client Alerts | October 16, 2020 | Securities and Corporate Finance