News Archive

Posted: January 7, 2016
1. Executive SummaryA scheme of arrangement is a statutory, court-supervised procedure under Part 26 of the UK Companies Act 2006 (the "CA 2006") which allows a company to make a compromise or arrangement with its members or creditors (or a class of them). Schemes of arrangement are not an insolvency procedure although they can be used, amongst other things, to obtain approvals from creditor classes for debt restructurings of insolvent companies where unanimous class approvals would otherwise be required.
Posted: January 7, 2016
The recent Supreme Court of Nova Scotia decision in Business Development Bank of Canada v D’Eon Fisheries Limited [2015 NSSC 160] dealt with the issue of whether fishing quota entitlements are personal property subject to the Personal Property Security Act (Nova Scotia) (the “PPSA”).
Posted: January 4, 2016
Many thanks to all of the ACIC Fellows that completed and returned the CLE topic cards at the Annual Meeting in October.  We appreciate your ideas and feedback!  Congrats to Jenna Jenson, Ed Hammond and Bill Bulmer as the lucky winners, by random drawing, of the special prize—an ACIC travel mug!  We look forward to seeing you all at the Spring Forum!
Posted: October 28, 2015
Wells Fargo Bank, N.A. v. 804 Congress, LLC, 756 F. 368 (5th Cir. 2014).Although a deed of trust may set out a specific amount as payment for trustee fees and provision for counsel fees, a bankruptcy court, in assessing a claim for payment of trustee fees (and counsel fees) for a post-bankruptcy foreclosure  can determined whether the fees are reasonable (and therefore recoverable at a high level of priority in the bankruptcy scheme-- secured claims), with the rest of the claim being either allocated to general unsecured claims or disallowed. 
Posted: October 28, 2015
Williams v. Federal Deposit Insurance Company (In re Positive Health Management), 769 F. 3d 899 (2014).
Posted: October 21, 2015
In TMT Procurement Corp. v. Vantage Drilling Co. (In re TMT Procurement Corp.), 764 F.3d 512 (5th Cir.
Posted: October 21, 2015
California Bank & Trust v. DelPonti, 181 Cal. Rptr. 3d 216 (Cal. Ct. App. 2014).Five Corners Rialto, LLC (“Five Corners”) obtained a construction loan from Vineyard Bank (“Bank”) to develop a 70-unit townhome project, with guaranties from Thomas DelPonti and David Wood (“Guarantors”).  When the first phase of the project was nearly complete, the Bank stopped funding approved payment applications, preventing completion and sale of the first-phase units, which, in turn, caused Five Corners to default on the loan.
Posted: October 21, 2015
Riverisland Cold Storage, Inc. v. Fresno-Madera Production Credit Association, 2015 WL 2213195 (Cal. Ct. App. 2015).
Posted: October 21, 2015
Citizens Bank and Trust Co. v. Security First Insurance Holdings (In re Brooke Capital Corporation), 588 Fed. Appx. 834 (10th Cir. 2014).
Posted: October 20, 2015
Failure to read a contract did not necessarily preclude equitable relief from the contract terms based on misrepresentations, although such claims for equitable relief ultimately were found to be moot.  Riverisland Cold Storage, Inc. v. Fresno-Madera Production Credit Association, 2015 WL 2213195 (Cal. Ct. App. 2015).
Posted: September 24, 2015
Website and Social Media Committee:The Website and Social Media Committee is responsible for the oversight and promotion of the College’s website and LinkedIn account. In addition to the chairs, committee members are comprised of representatives from other committees, each of whom is the responsible person for such other committees to update relevant content on the site and LinkedIn to promote engagement by committees and users. The committee is presently working on creating a printable version of the online membership directory.
Posted: September 22, 2015
Where limitation of liability clause in loan participation agreement was sufficiently prominent to be enforceable, the lead lender could be liable only for breaches of contract resulting from gross negligence or willful misconduct; participant’s contract right to require lead lender to repurchase loan on default was not an unenforceable liquidated damages clause.  2010-1 SFG Venture LLC v. Lee Bank & Trust Co., No. A15A0271, 2015 WL 4114064 (Ga. Ct. App. July 9, 2015).
Posted: September 22, 2015
In re Davis, 528 B.R. 757 (Bankr. E.D. Tenn. 2015).A bankruptcy trustee brought an adversary proceeding against a mortgagee, claiming a priority interest in settlement proceeds paid by a third party for damage to the debtor’s mortgaged real property.  The trustee contended that the mortgagee’s interest in the proceeds was unperfected because of its failure to file a UCC financing statement.
Posted: September 22, 2015
Obtaining loans to purchase property, the plaintiffs (“Borrowers”) executed notes secured by mortgages on real estate.  To facilitate securitization, numerous financial institutions pooled the mortgages together and transferred them to various trusts, in which investors then purchased interests in the form of mortgage-backed securities.  The trustees entered into contractual agreements with loan servicers (the “Servicers”) who would, among other things, (i) convey payments received from Borrowers to the appropriate trustee and (ii) make certain disbursements, i.e.
Posted: September 22, 2015
In April 2006, owners of real property in Hinesburg, Vermont (“Borrowers”) sought to refinance the loan on such property and executed (i) a promissory note, indorsed in blank, in an amount of $221,650 (the “Note”) and (ii) a mortgage granting a lien on Plaintiff’s interest in the property to secure their obligations under the Note (the “Mortgage”).  In March 2006, prior to finalization of Borrowers’ refinancing, J.P.
Posted: September 22, 2015
In October 2005, CAS, LLC, a Rhode Island limited liability company (“Debtor”) owning and operating real property in Middletown, Rhode Island, executed a promissory note (the “Note”) evidencing a $500,000 loan from Sovereign Bank (the “Original Creditor”).  Debtor executed a mortgage on the Middletown property to secure payment and performance of the loan (the “Mortgage”).  In September 2012, the Original Creditor assigned its right, title and interest in the Note and Mortgage to Northeast LP IV, LLC (“Creditor”). 
Posted: September 22, 2015
Channing Real Estate, LLC, a New York limited liability company acting through its principal member (“Buyer”), and Brian Gates, a Connecticut resident (“Seller”), met in September 2007 to negotiate Buyer’s purchase of a 50 percent interest in Seller’s company, which owned commercial real estate in Connecticut (the “Company”).  Both sides eventually entered into an option agreement in principle for Buyer to purchase such interest for $250,000.  Between August 2008 and December 2008, the parties exchanged several drafts of the transaction documents but failed to execute written agreemen
Posted: August 24, 2015
Do you still remember all of your favorite board games from when you were a kid and the thrill when you emerged victorious?  Well now we are all players in the investment game and we still like to come out on top.  However, the rules of the game are complex and constantly evolving and we are always looking for a way to get ahead of the competition.  
Posted: August 21, 2015
            On March 26, 2015, Judge Christopher S. Sontchi of the Bankruptcy Court of the District of Delaware held that holders of $2.18 billion principal amount of the 10% First Lien Notes due 2020 of Energy Future Intermediate Holding Company LLC (“EFIH”) were not entitled to a make-whole or other damage claim upon repayment of the Notes in bankruptcy.
Posted: August 21, 2015
            On April 13, 2015, the Second Circuit denied rehearing on its earlier decision giving effect to the filing of a UCC termination statement mistakenly identifying a security interest that JPMorgan, as administrative agent for a $1.5 billion loan to General Motors Corp. (“GM”), did not intend to terminate.

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