On April 23, 2012, the United States Supreme Court heard oral argument on the issue of whether secured creditors have the absolute right to credit bid their secured claims in sales of encumbered assets pursuant to a chapter 11 plan. There is currently a split amongst the Circuit Courts of Appeal on this issue. In […]
Read MoreOn April 12, 2012, Reddy Ice filed for chapter 11 bankruptcy in the Northern District of Texas, revealing that it has secured $70 million in debtor-in-posssion financing, which will allow the Company to pay for operating and restructuring costs during its bankruptcy case. Reddy Ice is the largest manufacturer and distributor of packaged ice in the United States. […]
Read MoreValuation Generally The valuation of assets plays a central role in most business bankruptcies. Among other things, a proponent of a chapter 11 plan must establish an accurate value of the debtor’s business, as such valuation is often tied to distributions to creditors, who are voting to approve the plan. Valuation is also important in determining the amount of a secured […]
Read MoreIn Robbye R. Waldron v. Adams & Reese, L.L.P. (In re American International Refinery, Inc.), the Fifth Circuit Court of Appeals recently upheld the fee award to bankruptcy counsel to the debtor, notwithstanding that such counsel was indirectly paid a pre-bankruptcy retainer by a secured creditor of the debtor. The Court did, however, affirm the bankruptcy […]
Read MoreThe Bankruptcy Code contains elaborate rules for the employment of counsel, accountants, consultants, financial advisors and other outside professionals in all bankruptcy cases. These rules generally require bankruptcy court approval of all professional engagements. Section 327 of the Bankruptcy Code and Federal Rule of Bankruptcy Procedure 2014, as modified by Court opinions, contain the primary standards that bankruptcy courts use to approve […]
Read MoreAFA Foods, Inc., a leading ground beef processing company out of Pennsylvania, filed chapter 11 bankruptcy in Delaware on April 2, 2012. Its bankruptcy case is consolidated in Case No. 12-11127, which includes the cases of its affiliates. AFA is among the largest ground beef processing enterprises in the United States, processing more than 500 […]
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