In 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 […]
Read MoreThe U.S. economy is not yet on a certain path to a full recovery, Federal Reserve Chairman Ben Bernanke said in a televised interview with ABC News on Tuesday. “It’s far too early to declare victory,” Bernanke told ABC’s Diane Sawyer. Portions of the transcript of the interview were aired Tuesday night on “World News.” […]
Read MoreOn March 22, 2012, American Airlines, which filed bankruptcy on November 29, 2011, obtained bankruptcy court approval to extend its exclusive right to file a plan of reorganization until September 28, 2012. Under section 1121 of the Bankruptcy Code, a debtor has an exclusive period of time (120 days after the commencement of a case) […]
Read MoreThe notion of being insolvent or being bankrupt dates back numerous centuries. In Ancient Greece, where bankruptcy did not exist, if a man owed a debt and he could not pay, he and his wife, children or servants were forced into “debt slavery,” until the creditor recouped losses via their physical labour. In the Old […]
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