In a decision holding that surety bonds are not executory contracts, the Fifth Circuit signaled that courts may in the future utilize the functional approach to determine if multiparty contracts are executory in nature. The case, filed in the United States Bankruptcy Court for the Middle District of Louisiana as In re Falcon V, L.L.C.
U.S. Supreme Court Gives Good News to Secured Lenders, Tempered with Words of Caution
The U.S. Supreme Court offered some good news to secured lenders last week, tempered with words of caution. In Chicago v. Fulton, the Court held that a secured creditor does not violate Section 362(a)(3) of the Bankruptcy Code by merely continuing to hold property of its debtor after that debtor files a bankruptcy petition.
Is That a Real Covenant, or Just an Executory Contract? Midstream Agreements to be Tested in Coming Wave of E&P Bankruptcy Cases.
Every few weeks, another news outlet reports that a wave of energy-related bankruptcy cases is on the way. See links below if you need some examples.[1] A recent decision in the Alta Mesa bankruptcy case about pipeline contracts has some important lessons for producers and midstream companies evaluating how future bankruptcy cases may affect
COVID-19 and OPEC are Having a Major Impact on E&P-Related Finance, Acquisitions, and Bankruptcies
The recent OPEC/COVID-19-related drop in energy prices may soon set off a tidal wave of energy-related bankruptcies. Funding for exploration and production (“E&P”) companies is much harder to find, and much more expensive, than it was just a few weeks ago. Reserve reports that might have been at “concern” status at year end will be
Draft Carefully – Recent U.S. Supreme Court Case Serves as Lesson to Properly Preserve Issues on Appeal
The Supreme Court of the United States recently handed down a decision on the statute of limitations period under the Fair Debt Collection Practices Act (the “FDCPA”) to start off its term. The case provides a lesson to practitioners to draft carefully; the failure to do so may result in the loss of the cause
Recent United States Supreme Court Decision Tackles Question of What Happens When Bankruptcy Meets Intellectual Property
A recent United States Supreme Court decision handed down in May addressed what occurred when contract, bankruptcy, and intellectual property laws intersected.[1] In Mission Products Holdings, Inc. v. Tempnology, LLC nka Old Cold, LLC, the Supreme Court was presented with the question of whether a debtor’s rejection of an executory contract rescinded