Insights

Drew Parobek, a partner in the Vorys Cleveland office, and Thomas Loeb, an associate in the Vorys Columbus office, co-authored an article for Law360 titled “What High Court Sears Case May Mean for Section 363 Sales”.

The Supreme Court has agreed to hear a dispute between Mall of America and Transform Holdco LLC as to whether a lease Transform acquired at a bankruptcy sale can be challenged after that sale has closed. Sections 363(b)(1) and 363(m) of the Bankruptcy Code are at play here. Section 363(b)(1) generally permits a bankruptcy trustee, after notice and hearing, to use, sell, or lease property that belongs to the bankruptcy estate outside of the ordinary course of business. Section 363(m) protects good faith purchasers at these bankruptcy sales, and states that the reversal or modification on appeal of a Section 363 bankruptcy sale does not affect the validity of that sale where the purchaser purchased the property in good faith, unless the sale was stayed pending appeal.

The United States Supreme Court recently made clear that bankruptcy litigation is different than most civil litigation when it unanimously held that a bankruptcy court’s order denying relief from the automatic stay is a final appealable order. 

On October 10, 2019, the United States Bankruptcy Court for the Southern District of Ohio (OHSB) entered General Order 30-2 implementing Complex Chapter 11 procedures.

On March 20, 2019, the U.S. Supreme Court decided Obduskey v. McCarthy & Holthus LLP, unanimously holding that a business engaged in nonjudicial foreclosure proceedings is not a “debt collector” under the Fair Debt Collection Practices Act (the “FDCPA”), except for the limited purpose of one section.

The Sixth Circuit recently held that Baker Botts, L.L.P. v. ASARCO, L.L.C., 135 S. Ct. 2158 (2015) does not apply to contempt sanctions.

Jeff Marks, a partner in the Vorys Cincinnati office, and Jeff Bieszczak, an associate in the Vorys Cleveland office, co-authored the feature article for the Cleveland Metropolitan Bar Association’s Bankruptcy and Commercial Law Section Newsletter Fall 2018 Edition

Leveraged transactions, such as leveraged buyouts (LBO) and leveraged recapitalizations, carry the risk of being unwound in a later bankruptcy of the party that transferred assets (including granting liens) or incurred obligations in the transaction.

In a continuing effort to alert our lender clients and other friends to developments in the bankruptcy, restructuring, workout and creditors’ rights space, provided below is a summary of recent noteworthy court decisions.

If your bank is in the process of a merger or has agreed to buy or sell a portfolio of mortgage loans, notices must be provided to the borrowers before and after the transaction closes.

House Bill 390 (HB 390)is effective on September 28, 2016. The foreclosure reform included in HB 390 impacts both residential and commercial property foreclosures.

The Bankruptcy Judges and Chapter 13 Trustees for the United States Bankruptcy Court for the Southern District of Ohio have reviewed and approved a proposed District Wide Mandatory Form Chapter 13 Plan and proposed form Order Confirming Chapter 13 Plan and Awarding Attorney Fees.

As part of a modernization project that was begun by the Advisory Committee on Bankruptcy Rules in 2008, most of the Official Bankruptcy Forms will be replaced with substantially revised, renumbered and reformatted versions, effective December 1, 2015.

Jackie Ford, partner in the Vorys Houston and Columbus offices, authored an article for Law360 on whether traditional definitions of property and ownership include social media accounts.

In December 2014, Ohio Governor John Kasich signed into law Substitute House Bill No. 9, which significantly revises Ohio’s law of Receiverships. Vorys today released a comprehensive analysis of the amended law. Key features of the amendments are summarized below.

In a recent decision in a Delaware Chapter 11 case, the court took the unusual step of capping the amount of a secured lender’s loan that could be used in the lender’s credit bid in a Section 363 sale.

Jeffrey A. Marks, a partner in the Vorys Cincinnati office, authored a chapter for Inside the Minds: Creditors’ Rights in Chapter 11 Cases. Marks’ chapter was titled “Real Estate Chapter 11 Filings: Key Issues.”

Vorys partners Sheila Nolan Gartland and Reginald Jackson served as editors for the American Bankruptcy Institute’s When Gushers Go Dry: The Essentials of Oil & Gas Bankruptcy.

Jeffrey Marks, a partner in the Vorys Cincinnati office, authored a column about the decision from U.S. Court of Appeals for the Sixth Circuit in Onkyo Electronics V. Global Technovations for Law360.