Bankruptcy Law

DELAWARE BANKRUPTCY MEMO (7/18/2011)

DELAWARE BANKRUPTCY COURT HOLDS INDIRECT OWNER AND LENDER LIABLE FOR DEBTOR’S WARN ACT VIOLATIONS  (370 KB)

On July 8, 2011, the United States Bankruptcy Court for the District of Delaware, per the Honorable Mary F. Walrath, issued an opinion applying the Worker Adjustment and Retraining Notification Act (the “WARN Act”), which may have important ramifications to owners of and lenders to distressed businesses that may be considering plant closings or mass layoffs of employees.  The case provides guidance for investors and lenders regarding the degree to which they should involve themselves in the employment decisions of their portfolio companies.
 
Click here to download a summary, analysis and copy of the Court’s Opinion and related documents.

CLIENT ALERT (11/19/2010)

DELAWARE BANKRUPTCY COURT DENIES OFFICIAL COMMITTEE OF UNSECURED CREDITORS' APPLICATIONS TO RETAIN TWO LAW FIRMS DUE TO IMPROPER SOLICITATION OF WOULD-BE COMMITTEE MEMBERS AND FAILURE TO ADEQUATELY DISCLOSE SUCH CONTACTS  (843 KB)
 
In re Universal Building Products can be broadly characterized as a cautionary tale highlighting the perils professionals can face if appropriate care is not taken to comply with all requirements of the Bankruptcy Code, the Bankruptcy Roles and the Delaware Local Bankruptcy Rules that apply to professionals seeking engagements for which Court approval is required, along with any applicable rules governing professional conduct.  Click here to download Judge Walrath's opinion and an analysis by Morris Nichols partner Gregory Werkheiser and associate Matthew Harvey.