Los Angeles— Rimon is proud to welcome Bankruptcy and Creditors’ Rights attorney Jacquelyn Choi as a Partner in its Los Angeles office. Ms. Choi joins Rimon from Raines Feldman LLP, where she was a Partner. Ms. Choi counsels secured and unsecured creditors involving all facets of corporate bankruptcy and has extensive bankruptcy litigation and appellate experience. For more than a…

On April 22, 2020, Bankruptcy Judge Sean H. Lane of the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) issued an important opinion[1] regarding claim disallowance under Section 502(d) of the United States Bankruptcy Code (“Section 502(d)”).[2] In brief, the Bankruptcy Court, like other courts including the Third Circuit Court of…

In Energy Future Holdings Corp. v. Morgan Stanley Capital Grp., Inc., 2019 U.S. App. LEXIS 18458 (3d Cir. 2019) (“EFH”), the United States Court of Appeals for the Third Circuit issued an important, albeit nonprecedential, opinion about whether adequate protection payments and plan distributions made during a bankruptcy case should be re-allocated in accordance with the…

The Supreme Court of the United States has ruled that the rejection in bankruptcy by a debtor-licensor of an executory trademark license does not terminate the licensee’s right to use the trademark but instead has the same effect as a breach of that contract outside of bankruptcy.[1] Consequently, the licensee may continue to use the trademark…

Several foreign suppliers are seeking to compel payment by Sears Holding Corporation and subsidiary debtors (collectively the “Debtors”) for merchandise purchased by the Debtors during, or just before the commencement of, the Debtors’ Chapter 11 bankruptcy cases (the “Case” or “Sears”) pending in the United States Bankruptcy Court for the Southern District of New York…

Does a real estate company’s bankruptcy reorganization plan go up in smoke if a tenant uses the property to grow marijuana? Relying on the plain text of Bankruptcy Code Section 1129(a)(3)[1] and the particular facts and procedural history of the case, the United States Court of Appeals for the Ninth Circuit affirmed confirmation of the…

A Delaware bankruptcy court (the “Court”) recently considered conflicting security interest claims of (i) a vendor that manufactured and consigned goods to a merchant that later filed for bankruptcy, and (ii) a secured lender that had a perfected lien on inventory and proceeds. The decision has important lessons relating to consignments. Summary The consignor failed…

Creditors, secured lenders and debtors take note: the United States Circuit Court of Appeals for the Second Circuit has spoken on how to determine the appropriate “cramdown” interest rate for replacement notes issued to senior lien holders, and whether noteholders were entitled to the “make-whole” premium under the indenture. Read the details and potential ramifications here.…

Spain’s central government has now invoked Article 155 of the Spanish Constitution to take control from the secessionist-oriented government in the region of Catalonia.  The executive of the Catalonian regional government will be replaced, the regional police and finances will be controlled from Madrid and regional elections will be called to allow for a new…

Section 503(b)(9) of the Bankruptcy Code provides a seller of goods with an administrative expense claim equal to the value of goods received by the debtor within the 20 day period prior to the bankruptcy filing. Two recent decisions provide important guidance for sellers and buyers of goods on the eve of a debtor’s bankruptcy.…