Corporate Bankruptcy: Addressing Emerging Issues in 2019
The past years have seen the busy landscape of corporate bankruptcy. Along with the increasing number of business bankruptcy petitions is the influx of emerging risk issues and challenges which make bankruptcy proceeding more complicated for both creditors and borrowers. Successful execution and preservation of value will be dependent on the company’s adaptability to the current paradigm. Overcoming the pitfalls will require in-depth knowledge of the latest legal trends and developments.
Join a panel of key thought leaders and professionals assembled by The Knowledge Group as they present an in-depth discussion of the emerging trends and developments in corporate bankruptcy. Speakers will dig deeper as they offer effective risk mitigation strategies and significant compliance practices to help practitioners in this evolving legal climate.
Key issues covered in this course are:
- Bankruptcy Laws: Recent Developments
- Emerging Issues and Challenges
- Risk Mitigation Strategies
- Best Compliance Practices
- What Lies Ahead
Cullen and Dykman LLP
- Small Business Reorganization Act of 2019
- Substantive Changes
- Other Notable New Law
Nelson Mullins Riley & Scarborough LLP
Recent Supreme Court Decisions on Bankruptcy Issues
Standard of Review of Bankruptcy Court Decision on Determination of Insider – U.S. Bank Nat. Ass’n ex rel. CW Capital Asset Mgmt. LLC v. Vill. at Lakeridge, LLC, 138 S. Ct. 960 (2018):
- The holding of the case is fairly straightforward: a clear-error standard is proper when appellate courts review a lower court's determination of whether a transaction is at arm’s length. Bankruptcy courts assess whether transactions are arm's length in part in order to determine whether parties are “insiders” of the debtor and thus subject to special rules and requirements.
Trademark Licensee Rights in Bankruptcy – Mission Product Holdings, Inc. v. Tempnology, LLC, 139 S. Ct. 1652 (2019):
- The First Circuit and held that rejection of an executory trademark license does not bar the licensee from continuing to use the mark. As Justice Kagan, writing for the majority, said, “A rejection breaches a contract but does not rescind it.”
- In so holding, the Court recognized that section 365 and “fundamental principles of bankruptcy law” mandate that rejection is not the same as rescission. In particular, the Court relied upon Bankruptcy Code section 365(g), which provides that rejection “constitutes a breach of such contract” immediately before the filing of the bankruptcy petition.
- This decision will likely enhance the negotiating leverage of trademark licensees vis a vis secured lenders and other creditors and make it more difficult for debtor-licensors to rebrand their businesses and reorganize.
Standard for Imposition of Contempt for Violating the Discharge Injunction – Taggart v. Lorenzen, 139 S. Ct. 1795 (2019):
- The Court rejected a strict-liability standard for contempt claims regarding violations of the discharge injunction. The Court unanimously held that a bankruptcy court may “impose civil contempt sanctions when there is no objectively reasonable basis for concluding that the creditor’s conduct might be lawful under the discharge order,” rejecting the argument that a subjective, good faith belief about the inapplicability of the discharge injunction is a defense to contempt.
- In so holding, the Court said relied upon section 524(a)(2), the statutory discharge injunction, and by section 105(a), the bankruptcy version of the All Writs Act. The rested its conclusion upon a longstanding interpretive principle: When a statutory term is “obviously transplanted from another legal source,” it “brings the old soil with it.” Because the Bankruptcy Code provides that a discharge order “operates as an injunction,” under 11 U.S.C.A. § 524(a)(2), and that a court may issue any “order” or “judgment” that is “necessary or appropriate” to “carry out” other bankruptcy provisions, 11 U.S.C.A. § 105(a), these provisions bring with them the “old soil” that has long governed how courts enforce injunctions in the civil context.
Who Should Attend:
- Bankruptcy Lawyers and Consultants
- Financial Executives
- Financial Reporting Officers
- Corporate Lawyers and Consultants
- Financial Advisors
- Top Level Executives
As a practical business, financial, and legal advisor, Ms. Bass counsels corporate and individual clients regarding operations, growth and risk management. Her clients include manufacturing companies, pharmaceutical corporations, medical service providers, consulting firms, personal care management networks, commercial mortgage servicers, and financial institutions.
In her creditors rights, bankruptcy and business litigation practices, Ms. Bass’ experience includes financial workouts both inside and outside the context of pending bankruptcy proceedings, and matters before both state and federal courts; valuation disputes; protection of secured creditor collateral positions and enforcement of secured obligations; prosecution and defense of actions under state and federal fraudulent conveyance laws; officer and director liability; commercial foreclosures and receiverships; lender liability litigation; commercial property lease negotiations and eviction proceedings; domestication and enforcement of foreign money judgments; partnership and corporate dissolution and accounting; and protection investor rights under the Securities and Exchange Act.
As a practical business, financial, and legal advisor, Ms. Bass counsels corporate and individual clients regarding operations, growth and risk …
Shane Ramsey is the Vice Chair of the Nelson Mullins Riley & Scarborough LLP Bankruptcy and Financial Restructuring Practice Group. Mr. Ramsey regularly represents committees of unsecured creditors, indenture trustees, secured creditors, unsecured creditors, bondholders, noteholders, liquidation trustees, plan administrators, disbursing agents, and other entities in bankruptcy reorganizations, liquidation proceedings, and bankruptcy related litigation.
Mr. Ramsey also has experience handling complex civil litigation matters in both state and federal courts and in alternative dispute resolution settings, including arbitration and mediation. His business litigation experience includes contract disputes, business torts, breach of fiduciary duties, officer and director liabilities, and other general litigation matters.
Shane Ramsey is the Vice Chair of the Nelson Mullins Riley & Scarborough LLP Bankruptcy and Financial Restructuring Practice Group. Mr. …
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Method of Presentation:
General knowledge of bankruptcy laws
NY Category of CLE Credit:
Areas of Professional Practice
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About Cullen and Dykman LLP
Drawing on a depth of experience and a rich tradition and history that bridges three centuries, Cullen and Dykman LLP is a solution-oriented general practice law firm.
Cullen and Dykman LLP has been serving institutional and individual clients in the New York metropolitan area since 1850. Our commitment to quality, cost-effective legal services has helped us build long-term relationships with clients in all types of industries. We offer a wide range of comprehensive legal services, including banking, corporate, energy, real estate, litigation, labor, municipal and trust and estates. Our offices are strategically located to best serve our clients. We have full service offices in Garden City (one of the largest law offices on Long Island), Wall Street (Manhattan), Albany (New York State's capital), and Washington D.C., as well as offices located in Brooklyn Heights and Newark, New Jersey. Our mission is to provide all of our clients — from individuals and small businesses to large utilities and financial service companies — with innovative and practical legal advice. We invite you to contact us to learn how Cullen and Dykman LLP can assist you with your legal needs.
About Nelson Mullins Riley & Scarborough LLP
Nelson Mullins Riley & Scarborough LLP provides advice and counsel in litigation, corporate, securities, finance, banking, mergers and acquisitions, financial services, healthcare, technology, intellectual property, labor and employment, government relations, regulatory, bankruptcy and creditors' rights, immigration, international law, and other needs of clients ranging from private individuals to large businesses.
With more than 65 diversified practice areas, Nelson Mullins works closely with its clients to find solutions to legal and business problems. With more than 500 attorneys and government relations professionals practicing from offices in Florida, Georgia, Massachusetts, New York, Tennessee, West Virginia, Colorado, the District of Columbia, and throughout the Carolinas, Nelson Mullins has strong roots in the business community and an appreciation for new directions in the business world.
Many Nelson Mullins clients—including growth companies, expanding local businesses, and major international companies—retain the Firm to provide all of their legal services. Other clients are national companies requiring assistance with specific regional or local legal matters. The Firm also represents international companies interested in locating facilities in the United States.
The Firm is large enough to provide the necessary resources and experience, yet personal enough to provide individual client attention. At heart, Nelson Mullins is an entrepreneurial firm dedicated to providing the highest quality legal services to our clients. Nelson Mullins encourages its lawyers to approach each client individually, working to understand the needs, goals, and long-term plans of each client. By identifying these strategic issues, our attorneys can develop an individualized approach targeting each facet of the client, creating specific solutions to help address each need, to reach each goal, and to realize each long-term plan.