The ability of a secured creditor to credit bid its debt in connection with a sale of a debtor’s assets received a strong boost in a decision last month in the Chapter 11 case of Aeropostale from U.S. Bankruptcy Judge
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Distressed M&A
GM Judge Nuances His Earlier Rulings and Sets Out Permissible Ignition Switch Lawsuits
By Ben Feder on
Posted in Distressed M&A
At a hearing in late August, Judge Robert Gerber expressed his annoyance with both sides in the ongoing battle to determine whether General Motors LLC (“New GM”), the entity formed in 2009 to acquire the assets of General Motors Corporation…
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Judge Protects GM Against Most, But Not All, Ignition Switch Claims
By Ben Feder on
Posted in Distressed M&A
Judge Robert Gerber ruled last week that General Motors LLC (“New GM”), the entity formed in 2009 to acquire the assets of General Motors Corporation (“Old GM”), is shielded from a substantial portion of the lawsuits based on ignition switch…
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Is GM Shielded From Ignition Switch Defect Liability? Hearing Highlights Thorny Due Process and Bankruptcy Issues
By Ben Feder on
Posted in Distressed M&A
Judge Robert Gerber will be stepping down at the end of this year, ending a storied judicial career highlighted by his oversight of the 2009 chapter 11 case of General Motors Corporation (“Old GM”). In one of the most frenetic…
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No Easy Road – GM Ignition Switch Litigation Raises Difficult Bankruptcy-Related Questions
By Ben Feder on
Posted in Distressed M&A
General Motors LLC (“New GM”) came into being in the summer of 2009, when it acquired substantially all of the assets of General Motors Corporation (“Old GM”) in a sale undertaken pursuant to section 363 of the Bankruptcy Code. The …
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None Too Appealing – District Court Turns Aside Free Lance-Star Publishing Credit Bid Lender
By Ben Feder on
Posted in Distressed M&A
A recent ruling in the Chapter 11 case of Free Lance-Star Publishing limited the credit bidding rights of a secured creditor. The ruling has called into question the ability of the holder of secured debt to utilize such debt …
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Loan to Moan? Judge Limits Right to Credit Bid in Chapter 11 Case of Free Lance-Star Publishing Co.
By Ben Feder on
Posted in Distressed M&A
A few months ago, a ruling in the Chapter 11 case of Fisker Automotive narrowed a secured creditor’s right to credit bid its debt in connection with a sale of the debtor’s assets. The decision surprised many observers and resurrected …
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Fisker Automotive Chapter 11 Case: a Two-Headed Stalking Horse and a New Credit Bidding Controversy
By Ben Feder on
Posted in Distressed M&A
Fisker Automotive’s chapter 11 case began in what has become a depressingly familiar fashion – a fast-tracked sale to a secured lender. However, two rulings by Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware have …
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DeX Games – SuperMedia and Dex One File Simultaneous Chapter 11 Cases to Effect Merger
By Ben Feder on
Posted in Distressed M&A
Distressed m&a is the “new normal” in Chapter 11 cases, as noted here and elsewhere. Two large media marketing and advertising companies, SuperMedia and Dex One, took the “new normal” to new extremes last week by filing simultaneous and
Too Cool for School Specialty – Alternative DIP Financing Allows Educational Company to Avoid Immediate Sale
By Ben Feder on
Posted in DIP Financing, Distressed M&A
The School Specialty chapter 11 case began in what has become all too typical fashion. The company, overleveraged and short of cash, had no choice but to accept a lifeline extended by its second lien secured lender, a private investment fund. The