View Recent Blog Posts in Bankruptcy and Business Reorganization

  • “Artificially Impaired” Creditors Can Vote on Chapter 11 Plans in the Fifth Circuit By J. Eric Lockridge and Benjamin M. Anderson The U.S. Fifth Circuit Court of Appeals dealt a blow to secured creditors in a recent opinion affirming a successful “cramdown” reorganization plan in a commercial real estate (“CRE”) case. See In re Village at Camp Bowie I, L.P., — F.3d — (5th Cir. Feb. 26, 2013), [...] Continue Reading... ....
  • Lenders and Developers Need to Understand How Louisiana’s Private Works Act Applies to Their Projects By J. Eric Lockridge A recent opinion from the United States Bankruptcy Court in Baton Rouge, Louisiana shows that even experienced lenders and developers may not always understand how Louisiana’s Private Works Act applies to their project, and how much leverage a properly filed notice of contract can provide to a general contractor.  Tuscany Reserve, [...] Continue Reading... ....
  • Landlord Entitled to Immediate Possession of Possession of Premises By J. Eric Lockridge Does a tenant’s failure to expressly assume a commercial lease within 120 days of filing bankruptcy give its landlord the right to immediate possession of the leased premises? Yes, according to several recent court decisions. The bankrupt tenant’s landlord is entitled to immediate possession of the leased premises, without going through [...] Continue Reading... ....
  • 363 Sales of Assets in Bankruptcy – Chrysler and Beyond By Eric Lockridge The judge overseeing Chrysler LLC’s bankruptcy entered an order on June 1, 2009 approving Chrysler’s motion seeking permission to sell substantially all of its assets to a new company.  The procedure by which this sale was accomplished, and by which a similar sale in the GM bankruptcy will likely be accomplished, is known [...] Continue Reading... ....
  • Businesses Seeking Bankruptcy Protection at Highest Level in Two Years By Eric Lockridge The number of businesses seeking bankruptcy protection hit its highest level in more than two years in March, as the recession sends more companies into financial crisis, according to a story today in the Dow Jones Daily Bankruptcy Review. The 7,843 commercial bankruptcy filings in March 2009 represent a 23.2% jump from [...] Continue Reading... ....
  • “Zone of Insolvency” Claims Against Officers and Directors Still Alive (and Well?) Outside of Delaware By J. Eric Lockridge In the current economy, corporate officers and directors face an increased risk of derivative suits and other litigation against them from frustrated shareholders and other stakeholders in a corporation. Should officers and directors also be concerned about claims brought against them by their company’s creditors? The answer may depend on what [...] Continue Reading... ....
  • Preparing for a Tenant’s Bankruptcy – the Landlord’s Perspective by J. Eric Lockridge In today’s distressed retail market, the possibility of a tenant’s bankruptcy is a top concern for managers and owners of retail centers. Owners of commercial office buildings in many parts of the country are becoming increasingly concerned about tenant bankruptcies, too. Landlords need to know the options available when a tenant [...] Continue Reading... ....
  • How Does Chapter 11 Affect My Business When a Customer, Competitor or Vendor Files for Bankruptcy? By J. Eric Lockridge Chapter 11 bankruptcies are on the rise, and many expect that trend to continue. In the third quarter of 2008 there were 70% more Chapter 11 filings than in the third quarter of 2007, according to Automated Access to Court Electronic Records, a company that tracks bankruptcy statistics. Experts are predicting [...] Continue Reading... ....