Our post last month titled Of Whiskey and Martha’s Vineyard Realty: Federal Receivership Ordered for Fast Growing Uncle Nearest Brand discussed a federal court’s decision to grant a lender’s motion for the appointment of a receiver for its borrower. Set forth below are: (i) brief updates on developments in the Uncle Nearest case; and (ii) discussion of a recently issued Third Circuit decision in the completely unrelated matter of Whittaker Clark & Daniels Inc. dealing with the power of a corporate board to commence bankruptcy after the appointment of a state court ... Continue Reading
Companies facing financial difficulties often utilize Chapter 11 to help effectuate a restructuring or sale as part of a case filed in the United States Bankruptcy Court. In other instances, a company’s lender – impatient with a company’s efforts to respond to financial challenges – may apply to a United States District Court for appointment of a federal receiver for the company.
The appointment of a federal receiver is an extraordinary remedy allowed only after a judicial finding that such a step is clearly necessary to protect a lender’s interest in its collateral. Continue Reading
Heidi J. Sorvino, Chair of White and Williams' Financial Restructuring and Bankruptcy Practice and Managing Partner of the New York Office, and Associates, Andrew E. Arthur and Michael Ingrassia, recently co-authored “The $7.5 Million Subchapter V Debt Limit Should be Reinstated," published by the American Bankruptcy Institute Journal. The article detailed a few reasons why restructuring professionals have urged Congress to reinstate the elevated debt limit and the benefits that could stem from this increase.
Click here to read the article.Continue Reading