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Entries by Douglas J. Schneller

Third circuit affirms plan distributions are not proceeds of collateral

Insight Douglas J. Schneller Douglas J. Schneller · July 29, 2019
In Energy Future Holdings Corp. v. Morgan Stanley Capital Grp., Inc., 2019 U.S. App. LEXIS 18458 (3d Cir. 2019) (“EFH”), the United States Court of Appeals for the Third Circuit issued an important, albeit nonprecedential, opinion about whether adequate protection payments and plan distributions made during a bankruptcy case should be

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SCOTUS Holds Licensee May Continue Using Trademark After Rejection in Bankruptcy

Insight Douglas J. Schneller Douglas J. Schneller · June 11, 2019
The Supreme Court of the United States has ruled that the rejection in bankruptcy by a debtor-licensor of an executory trademark license does not terminate the licensee’s right to use the trademark but instead has the same effect as a breach of that contract outside of bankruptcy.[1] Consequently, the licensee may continue to use the

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LIBOR Fallbacks- Alternative Reference Rates

Insight Douglas J. Schneller Douglas J. Schneller · Fred Chang Fred Chang · Q. Scott Kaye Q. Scott Kaye · Emma R. Larson Emma R. Larson · Robert Q. Lee Robert Q. Lee · Suzanne L’Hernault Suzanne L’Hernault · Lisa-Marie Monsanto Lisa-Marie Monsanto · Yaacov P. Silberman Yaacov P. Silberman · Patrick Maschio Patrick Maschio · May 20, 2019
LIBOR Fallbacks: What’s Next After LIBOR? At the end of 2021, the London Interbank Offered Rate (“LIBOR”) may cease as a reference interest rate.[1] For years LIBOR has served as the leading baseline reference interest rate for loans and other financial instruments such as floating rate notes. In order to minimize or avoid loan

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Sears Fights with Vendors Whether Goods Were Delivered Prepetition or Postpetition

Insight Douglas J. Schneller Douglas J. Schneller · May 16, 2019
Several foreign suppliers are seeking to compel payment by Sears Holding Corporation and subsidiary debtors (collectively the “Debtors”) for merchandise purchased by the Debtors during, or just before the commencement of, the Debtors’ Chapter 11 bankruptcy cases (the “Case” or “Sears”) pending in the

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9th Circuit Declines to Dismiss a Marijuana-Related Chapter 11 Case, Affirms Plan Confirmation

Insight Douglas J. Schneller Douglas J. Schneller · May 09, 2019
Does a real estate company’s bankruptcy reorganization plan go up in smoke if a tenant uses the property to grow marijuana? Relying on the plain text of Bankruptcy Code Section 1129(a)(3)[1] and the particular facts and procedural history of the case, the United States Court of Appeals for the Ninth Circuit affirmed confirmation of the

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Sports Authority and Consignments: Lessons for Lenders and Vendors

Insight Douglas J. Schneller Douglas J. Schneller · May 09, 2019
A Delaware bankruptcy court (the “Court”) recently considered conflicting security interest claims of (i) a vendor that manufactured and consigned goods to a merchant that later filed for bankruptcy, and (ii) a secured lender that had a perfected lien on inventory and proceeds. The decision has important lessons relating to

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Visa & Mastercard Interchange Fees Merchant Class Action Update

Insight Douglas J. Schneller Douglas J. Schneller · John J. Hanley John J. Hanley · Patrick Maschio Patrick Maschio · April 24, 2019
In recent years merchants, regulators, banks and financial institutions, consumers and other parties have been keenly focused on “interchange fees” charged to merchants by issuers of credit or debit cards for any transaction in which the card is used for a purchase. Interchange fees typically consist of a percentage fee, based on the

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Top 10 Issues to Consider When Dealing with Loan Participations. Rimon Partners Douglas J. Schneller and John J. Hanley in Thomson Reuters

Insight John J. Hanley John J. Hanley · Douglas J. Schneller Douglas J. Schneller · November 05, 2018
Rimon Partners John J. Hanley and Douglas J. Schneller thoroughly summarize the considerations that lenders should take into account when deciding whether or not to participate in a loan. Read the full article here.

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Default Interest Is Enforceable in Bankruptcy Except When It’s Not

Insight Douglas J. Schneller Douglas J. Schneller · John J. Hanley John J. Hanley · August 21, 2018
Default interest is a very common feature in all manner of lending transactions in today’s market.  However, few legal issues have created more confusion or generated more litigation.  Bankruptcy courts, in particular, have struggled with the issue but have failed to develop a consistent framework.  There are many pitfalls but

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Top Ten Issues to Consider When Dealing with Loan Participations

Insight Douglas J. Schneller Douglas J. Schneller · John J. Hanley John J. Hanley · July 24, 2018
Rimon Partners, John Hanley and Douglas Schneller, have an important update titled "Top Ten Issues to Consider When Dealing with Loan Participations". Loan participations can be an effective way for lenders to reduce their exposure to a borrower’s credit and manage their loan portfolios and liquidity, and for investors to acquire an

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Second Circuit Opines on Cramdown Interest and Make-Whole Premiums

Insight Douglas J. Schneller Douglas J. Schneller · November 13, 2017
Creditors, secured lenders and debtors take note: the United States Circuit Court of Appeals for the Second Circuit has spoken on how to determine the appropriate “cramdown” interest rate for replacement notes issued to senior lien holders, and whether noteholders were entitled to the “make-whole” premium under the

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Third Circuit SemCrude Decision Impacts Oil Producers and Purchasers

Insight Douglas J. Schneller Douglas J. Schneller · September 04, 2017
Applying Delaware law, the United States Circuit Court of Appeals for the Third Circuit issued a ruling that will significantly affect the rights of upstream producers of oil and gas and secured creditors generally. The court determined that upstream oil producers did not have automatically perfected security interests in oil they sold

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3rd Circuit and Delaware Bankruptcy Court Hold That “Receipt” Under Bankruptcy Code Section 503(b)(9) Requires Physical Possession

Insight Douglas J. Schneller Douglas J. Schneller · August 03, 2017
Section 503(b)(9) of the Bankruptcy Code provides a seller of goods with an administrative expense claim equal to the value of goods received by the debtor within the 20 day period prior to the bankruptcy filing. Two recent decisions provide important guidance for sellers and buyers of goods on the eve of a debtor’s bankruptcy. Read more

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Insolvency of Alitalia Puts Creditors on Notice to Make Claims

Insight Douglas J. Schneller Douglas J. Schneller · Emma R. Larson Emma R. Larson · Stephen Díaz Gavin Stephen Díaz Gavin · Claudio Palmieri Claudio Palmieri · July 20, 2017
The May 2, 2017 bankruptcy filing for Alitalia might be the end of the journey for the troubled Italian flag carrier, but creditors in the U.S., Italy and elsewhere might still have a ticket to recover some claims. Alitalia has now also filed for bankruptcy protection in the U.S. under Chapter 15 of the Bankruptcy Code. Chapter 15 was added

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U.S. Supreme Court: Filing a Time-Barred Claim in a Chapter 13 Bankruptcy Case Does Not Violate the Fair Debt Collection Practices Act

Insight Douglas J. Schneller Douglas J. Schneller · July 11, 2017
The U.S. Supreme Court recently issued a 5-3 decision holding that a creditor filing a proof of claim in a Chapter 13 bankruptcy case for a time-barred debt was not false, deceptive, misleading, unconscionable or unfair conduct in violation of the Fair Debt Collection Practices Act (FDCPA). Learn more here. > You may also find

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U.S. Supreme Court: Purchaser of Defaulted Loans Not a Debt Collector Under the Fair Debt Collection Practices Act

Insight Douglas J. Schneller Douglas J. Schneller · July 11, 2017
The U.S. Supreme Court recently held that a purchaser for its own account of a defaulted loan is not a debt collector within the meaning of the Fair Debt Collection Practices Act (FDCPA). Learn more here. > You may also find this complementary article of interest: U.S. Supreme Court: Filing a Time-Barred Claim in a

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First Circuit: Bankruptcy Court “Retention of Jurisdiction” Provision Requires More Than Mere Words

Insight Douglas J. Schneller Douglas J. Schneller · July 11, 2017
The First Circuit recently ruled that the bankruptcy court lacked the authority to adjudicate disputes under a contract because there was no “arising under,” “arising in” or “related to” jurisdiction — in spite of the fact that the contract itself, previously approved by the bankruptcy court, included a

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Client Alert: Only in New York? Assignee Permitted to Enforce Mortgage Without Being Holder of the Note

Insight Douglas J. Schneller Douglas J. Schneller · June 09, 2017
Can an assignee of an interest in a mortgage and mortgage note by way of a written assignment enforce the underlying obligations under New York law if the original note was not delivered and indorsed to it? On May 31, 2017, in an unsigned opinion that will interest sellers and buyers of loans and other loan market participants, the Court of

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Client Alert: 2nd Circuit Affirms Debtor’s Decision to Nix Sale After Market Price Increases

Insight Douglas J. Schneller Douglas J. Schneller · June 09, 2017
In a decision that will be of interest to distressed investors and sellers and buyers of bankruptcy claims, the United States Circuit Court of Appeals for the Second Circuit affirmed a lower court decision which permitted a claims seller – and debtor in bankruptcy – to disapprove a trade confirmation after the market price had

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Rimon Law Welcomes Finance and Restructuring Attorney, Douglas Schneller, as Partner to its New York City Office

News Douglas J. Schneller Douglas J. Schneller · May 01, 2017
(New York City) May 1, 2017 – Rimon is joined by finance and insolvency attorney, Douglas Schneller, as Partner in its New York City office. Mr. Schneller handles a broad range of complex transactional matters involving bank finance and lending; restructuring, bankruptcy and insolvency; trade and receivable finance; par, distressed and

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