August 2013

You are browsing the site archives for August 2013.

The recent New York case of Lichtenstein v. Willkie Farr addresses a borrower’s conflict caused, in part, by a loan covenant. The covenant invoked personal liability of the members in the event the entity files a voluntary bankruptcy. The court had to resolve the tension between that provision and an entity’s members’ fiduciary duty of loyalty precluding “corporate waste” and a member placing their personal interests ahead of the interest of the entity. (more…)

We’ve previously blogged about the significance of § 510(c) surcharges, particularly on how to plan for them. In line with this post, Timothy Lupinacci (Birmingham office) and Erno Lindner (Memphis office) have published a new article in the ABI Journal discussing the general surcharge standards and exploring a recent tenant-in-common debtor’s attempt to surcharge collateral for the cost of a bankruptcy filing: (more…)