Bankruptcy & Restructuring: Structured Dismissals, Out-of-Court Workouts, and Safe Harbors

(84 Ratings)

Produced on: October 13, 2017

Course Format On Demand Audio

Taught by

Categories:

Course Description

Time 60 minutes
Difficulty Intermediate

There have been many significant court decisions recently that will impact corporate restructurings far into the future. Earlier this year in Czyzewski v. Jevic Holding Corp., the Supreme Court limited the utility of “structured dismissals” in Chapter 11 cases, which have become an increasingly popular method of effecting corporate reorganizations or liquidations, particularly in cases where a Chapter 11 plan cannot be confirmed. The Jevic decision thus narrowed the range of restructuring alternatives for very distressed Chapter 11 debtors. In addition, the Second Circuit Court of Appeals in Marblegate Asset Management, LLC v. Education Management Finance Corp. restored clarity to the capital markets regarding the question of whether distressed companies may conduct out-of-court restructurings that do not by their terms alter core payment terms of indentures for publicly-issued debt securities.

The Second Circuit’s decision reversed an earlier lower court opinion that had introduced significant uncertainty into a very popular restructuring method. Finally, a number of influential courts recently opined on the scope of the Bankruptcy Code’s “safe harbor” against preference and certain fraudulent transfer avoidance actions. That safe harbor protects certain transfers arising in connection with securities contracts, commodity contracts and forward contracts involving specific types of financial intermediaries from these “claw-back” actions, which benefits defendants and hinders plaintiffs.

Michael J. Riela, a partner in the Creditors’ Rights and Business Reorganization practice group at the law firm of Tannenbaum Helpern Syracuse & Hirschtritt LLP, will discuss these significant recent cases, as well as their potential effect on future restructuring strategies and options.


Learning Objectives:

  1. Understand the recent cases regarding corporate bankruptcies, as well as their effect on strategies and options in future restructuring matters
  2. Discuss the future of structured dismissals of Chapter 11 cases
  3. Consider the effect of out-of-court workouts involving public debt securities
  4. Examine the Bankruptcy Code’s “safe harbor” from preference and certain fraudulent transfer avoidance actions

Faculty

Michael Riela

Tannenbaum Helpern Syracuse & Hirschtritt LLP

Mike Riela is a partner in Tannenbaum Helpern’s Creditors’ Rights and Business Reorganization practice. With more than 15 years of experience, Mike advises companies on complex restructuring, distressed M&A, loan transactions and bankruptcy related litigation matters. Mike has in-depth experience in advising clients on corporate and real estate bankruptcies, workouts, Chapter 11 and Chapter 7 bankruptcy cases, debtor-in-possession (DIP) and bankruptcy exit loan facilities, secondary market trading of distressed debt and trade claims, Section 363 sales and bankruptcy retention and fee agreements and disputes. His clients include banks, administrative agents, indenture trustees, hedge funds, private equity firms, professional services firms, trade creditors, contract counterparties, shareholders, debtors and investors.

Mike has represented buyers of assets in Section 363 and out-of-court sales from sellers such as Evergreen Solar, Inc., Sonic Telecommunications International, Ltd, Urban Communicators PCS Limited Partnership, US Aggregate, Inc., and Vectrix Corporation, as well as representing lenders, trustees and administrative agents in major Chapter 11 cases and workouts such as Delta Air Lines, Inc., Extended Stay Inc., Buffets Inc., Legends Gaming LLC, Nortel Networks, Premier International Holdings Inc., and many others.

Mike also works with clients on cybersecurity and data privacy issues, including the assessment and investigation of information security and data breach incidents. Before any data breaches occur, Mike prepares and helps clients implement written information security programs, systems access policies, and incident response plans. After clients suffer a breach, Mike assists with their response and advises on their legal duties, including clients’ duties under various security breach notification laws.

Prior to joining Tannenbaum Helpern, Mike was a shareholder at Vedder Price and was a counsel at Latham & Watkins. He has been recently selected to serve on the 2016 Bankruptcy editorial advisory board for the Law360 publication.



Reviews

GP
Georgian P.

Interesting program! Very helpful material! Speaker knowledgeable and informative! Great course!

JB
Jared B.

The presenter was quite good. I only have the basics of bankruptcy under my belt, but this CLE was still extremely clear and engaging.

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$59

$ 59 Business, Corporate, & Securities Law and Bankruptcy & Restructuring In Stock

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