Note from Peter S. Clark, II, (CR&B Practice Group Leader):

Welcome to the October 2015 issue of the CR&B Alert, the newsletter produced by Reed Smith's Commercial Restructuring & Bankruptcy Group. Readers who wish to print and read the newsletter in its entirety may do so by downloading the .PDF below. Please share your feedback and ideas. We appreciate the opportunity to serve you.

In this Issue:

• Third Circuit: Bankruptcy Sale Proceeds Not Subject to Bankruptcy Code Priority Scheme
• French Supreme Court Rules out Liability for Undercapitalising Companies
• Security Interest Was Perfected Even Though Financing Statements Filed Prior to Debtor’s Execution of the Security Agreements
• Insider Guarantor Not a ‘Creditor’ Where Indemnification Rights Are Waived
• Court Refuses to Recharacterize Loans from Sole Shareholder Even Though Business Was Undercapitalized
• Litigation Funding for Liquidators in Singapore: Re Vanguard Energy Pte Ltd
• The Third Circuit’s Internal Split on the Viability of Equitable Mootness Continues
• Who Owns the Social Media Accounts in a Closely Held Business?
• ‘Operating Interests,’ ‘Working Interests,’ ‘Production Payments’ and ‘Overriding Royalty Interests’ – How Do These Interests Fit Within ‘Property of a Debtor’s Estate’ Under the Bankruptcy Code?
• Landlord’s Corner
• What Constitutes ‘Value’ Under Texas UFTA? Fifth Circuit Vacates Its Decision and Certifies the Question to the Texas Supreme Court
• Delaware Bankruptcy Court Holds Section 502(b)(6) 15% Cap Applies to Time, Not Rent
• Pre-Petition Sublease Termination Not Avoidable Where Termination Is Valid under State Law
• Surety’s Entitlement to Subrogation Precludes Debtor from Retaining Funds
• Make-Whole Premium Is Not Owed Unless the Indenture Expressly Requires Payment upon Acceleration
• Secured Creditor and Purchaser of Mortgage Debt Portfolio Cannot Claim Lack of Privity with Debtor
• The Absolute Priority Rule Applies to Chapter 11 Debtors
• Applying Section 510(b), Court Subordinates Judgment Claim of Former LLC Member
• Bankruptcy Court Upholds Debtor’s Right to Offset Vendor Overpayments and Trade Credits Against Section 503(b)(9) Claims
• Chapter 7 Trustee Recovers Repayments of ‘True Overdrafts’ to Depository Bank as Preferential Transfers
• Claims Against Separate Debtors Must Be Treated Separately When Cases Are Jointly Administered and Not Consolidated
• Counsel’s Corner: News From Reed Smith

Download the .PDF below to read more.