Restructuring

Ronit J. Berkovich, Sara Coelho, and Dana Kaufman have published an article in LSTA’s 2012 Loan Market Chronicle, entitled 2011: A Reminder to Secured Creditors to Take Nothing for Granted.  The authors discuss a number of key court decisions issued in 2011 that affect secured creditors’ rights, options, and liabilities in bankruptcy cases.  Specifically, the authors examine the famous TOUSA decisions addressing the scope of fraudulent conveyance liability, the Enron decision interpreting one of the Bankruptcy Code’s safe harbors against fraudulent conveyance actions, the DBSD anti-gifting decision, the Zais decision upholding the involuntary bankruptcy of a CDO, and the Seventh Circuit’s River Road decision finding a right for secured creditors to credit bid on their collateral when it is sold under a chapter 11 plan.  Ultimately, the authors conclude that, in 2011, more questions concerning secured creditors’ rights were raised than answers decided, setting the stage for 2012 to be an interesting year.
To read the article, follow this link.