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Three for the Lenders

A series of recent decisions may provide boosts for the positions of lenders. Post-Petition Interest on an Oversecured Claim In re Family Pharmacy, Inc. held that Missouri law, like New York law, distinguishes between permissible default interest and impermissible penalties. However the case diverges from the majority view adopted by several circuit courts of appeal insofar…

Client Alerts | May 27, 2020 | Creditors’ Rights and Bankruptcy Litigation | Special Situations and Credit

Puttin’ on the Ritzen: Supreme Court Rules that Stay Relief Denial is Appealable

A recent Supreme Court decision, Ritzen Group Inc. v. Jackson Masonry, LLC, has enhanced the position of secured creditors and litigants in bankruptcy cases by allowing them to promptly challenge bankruptcy court rulings concerning the automatic stay. Background The case grew out of a sale of real property that did not close. The buyer (Ritzen) sued…

Client Alerts | January 23, 2020 | Creditors’ Rights and Bankruptcy Litigation

Hot Off The Press: Newest Tribune Decision Affirms Safe Harbor Defenses

The latest decision by the Second Circuit Court of Appeals in the long-running Tribune Company fraudulent conveyance litigation provides Court of Appeals endorsement of safe harbor defenses to clawback actions that had been considered potentially vulnerable following the Supreme Court’s decision in Merit Management Group LP v. FTI Consulting, Inc. The opinion amounts to a reconsideration and reaffirmation…

Client Alerts | December 23, 2019 | Creditors’ Rights and Bankruptcy Litigation

Lessons from Willful Blindness Decision Alerts

A recent decision by Judge Stuart Bernstein of the Bankruptcy Court for the Southern District of New York, Irving Picard, as trustee for Bernard L. Madoff Investment Securities LLC v. Citibank, N.A., clarifies the parameters of the “willful blindness” standard applicable in fraudulent conveyance actions, and illustrates practical applications of safe harbor defenses that may be asserted…

Client Alerts | December 5, 2019 | Hedge Funds | Creditors’ Rights and Bankruptcy Litigation