Visit our website | Click here to view online
Contact the Newsletter Editor

Vol 14, Num 6 l November 2015

Business Reorganization An ABI Committee Newsletter - Spnsored by The Wall Street Journal

► In This Issue:

Survey Says?

ABI

Andrew Parlen
O’Melveny & Meyers LLP
New York

The Business Reorganization Committee has conducted its first formal survey of the members, and the results are in.  To no one’s surprise--but to our gratification--the survey confirms that the members of the Committee consist of a geographically diverse group of restructuring-focused professionals from a cross-section of firms as well as academics and bankruptcy judges.  The results have been informative to the Committee’s leadership who continue to take steps to ensure the participants’ feedback is considered and that specific emphasis is focused on continuing and expanding the Committee newsletter, conference programming, and networking events.  
» Read More

Now You See It, Now You Don’t: The Vanishing Value of Gift Cards in Bankruptcy

ABI

Veronique A. Urban
Farrell Fritz, P.C.
Uniondale, New York

The holiday season is fast approaching and it would not surprise me if many of you reading this article receive a gift card at some point during the next couple of months. As you look at that gift card, however, you may find your heart sinking as you recall the numerous retail stores that recently filed for bankruptcy. American Apparel, RadioShack, The Wet Seal, Brookstone, Quicksilver, Ashley Stewart and Delia’s – just to name a few! One issue that all retailers face when filing for bankruptcy is how to deal with claims that arise from outstanding gift cards.

In an effort to preserve the goodwill of its customers, a retailer that files bankruptcy for the purpose of reorganizing its business will often want to ensure that gift cards are honored at the store’s retail locations.
» Read More

The Coal Lease Crib Sheet for Bankruptcy Practitioners

ABI

Michael J. Roeschenthaler, Esq.
McGuireWoods LLP
Pittsburgh, PA

ABI

Frank J. Guadagnino, Esq.
McGuireWoods LLP
Pittsburgh, PA

It is no secret that the coal industry is struggling.  As coal producers face mounting challenges attributable to restrictive environmental regulations, reduced demand for coal, lower spot prices and significant legacy costs, they are compelled to explore cost-cutting measures and restructuring options.  Many will endeavor to weather the storm with out-of-court restructuring efforts, but some will find themselves seeking the protections afforded them under chapter 11 of the Bankruptcy Code.  The strategy for the ensuing bankruptcy cases will be driven in part by the debtor’s intended treatment of its interests in coal leases. 

A coal lease is a coal producer’s most valuable asset, as the vast majority of coal reserves controlled by producers are subject to a coal lease.  Coal leases likewise capture some of the coal producer’s most significant and potentially unmanageable claims—such as environmental obligations—that raise a number of significant issues in the course of a bankruptcy proceeding.  The obligations are often non-dischargeable, difficult to abandon pursuant to § 554 of the Bankruptcy Code and must continue to be performed during the case in accordance with both the express terms of the lease and applicable state and federal law.  Therefore, any bankruptcy professional involved with a coal restructuring should have a working knowledge of the material terms of a typical coal lease, especially in light of the short period of time a debtor-in-possession has to assume or reject it.  This article provides a summary of those terms.
» Read More

Committee to Co-host Reception at This Week's Winter Leadership Conference

Thursday kicks off this year's Winter Leadership Conference in sunny Arizona! This year, the Conference is in downtown Phoenix at the historic Arizona Biltmore Resort and Spa. The program features topics designed for consumer and business practitioners, as well as financial advisors. As always, the Conference also provides numerous social and fun events to network and renew friendships with colleagues from around the nation. 

The committee will be co-hosting a joint session with the Real Estate Committee, on Friday afternoon, at 3:45 pm MT. The title of this session is "Big and Little Boxes: The Ins and Outs of Retail Restructuring." Speakers will include Martin J. Bienenstock (Proskauer; New York), Jack Butler (Hilco Global; Northbrook, Ill.), Hon. Mary Grace Diehl (U.S. Bankruptcy Court (N.D. Ga.; Atlanta), Lorenzo Marinuzzi Morrison & Foerster LLP; New York) David L. Pollack (Ballard Spahr LLP; Philadelphia).

Immediately following the session, the committees will also be hosting a networking reception. Attendees are invited to enjoy the opportunity to mingle with their colleague while enjoying refreshments.

Thank you to our sponsors:

 

Carney Law Firm, P.A. Engelman | Berger, PC Finn Dixon & Herling
Kilpatrick Townsend & Stockton LLP Loeb & Loeb LLP Perkins Coie
 
66 Canal Center Plaza, Suite 600, Alexandria, VA 22314
www.abi.org | support@abiworld.org
Tel. (703)-739-0800
Follow ABI on Twitter Follow ABI on Facebook Follow ABI on Linkedin

Copyright © 2015 American Bankruptcy Institute.