Bryan Cave Leighton Paisner Banking Blog

Bank BCLP

Bankruptcy

Main Content

Restricting Corporate Authority to File Bankruptcy

August 2, 2018

Authors

Bryan Cave Leighton Paisner

Restricting Corporate Authority to File Bankruptcy

August 2, 2018

by: Bryan Cave Leighton Paisner

The Fifth Circuit recently issued an opinion that federal bankruptcy law does not prohibit a bona fide shareholder from exercising its right to vote against a bankruptcy filing notwithstanding that such shareholder was also an unsecured creditor. This represents the latest successful attempt to preclude bankruptcy through golden shares or bankruptcy blocking provisions in corporate authority documents.

In this post on the Bankruptcy Cave, Bryan Cave Leighton Paisner attorney, Jay Krystinik, analyzes how the Fifth Circuit Affirms Dismissal of Bankruptcy Case Due to Lack of Corporate Authority to File (and potentially provides a blueprint for veto powers over

Read More

The Magic of Mt. Gox

November 27, 2017

Authors

Bryce Suzuki and Justin Sabin

The Magic of Mt. Gox

November 27, 2017

by: Bryce Suzuki and Justin Sabin

How Bitcoin Is Confounding Insolvency Law

Arthur C. Clarke famously observed: “Any sufficiently advanced technology is indistinguishable from magic.” Our regulatory, legislative, and judicial systems illustrate this principle whenever new technology exceeds the limits of our existing legal framework and collective legal imagination.  Cryptocurrency, such as bitcoin, has proven particularly “magical” in the existing framework of bankruptcy law, which has not yet determined quite what bitcoin is—a currency, an intangible asset, a commodity contract, or something else entirely.

The answer to that question matters, because capturing the value of highly-volatile cryptocurrency often determines winners and losers in bankruptcy cases where cryptocurrency

Read More

Supreme Court to Address Whether Collection of Time-Barred Debts Violate FDCPA

October 14, 2016

Authors

Robert Klingler

Supreme Court to Address Whether Collection of Time-Barred Debts Violate FDCPA

October 14, 2016

by: Robert Klingler

Our colleagues at The Bankruptcy Cave, Bryan Cave’s Bankruptcy & Restructuring Blog, recently published a blog post on the Supreme Court agreeing to to hear the issue of whether a debt collector that buys old, charged off debt which is beyond the statute of limitations violations the Fair Debt Collection practices Act when it files a proof of claim on that debt in a Chapter 13 bankruptcy (which they all do, as no one has an incentive to object to the claim, and they often collect far more on the debt than what they paid).

[On October 11, 2016,]

Read More

Forming a Game Plan for TruPS

November 14, 2014

Authors

Ken Achenbach and Michael Shumaker

Forming a Game Plan for TruPS

November 14, 2014

by: Ken Achenbach and Michael Shumaker

For the past 15 years, trust preferred securities (TruPS) have constituted a significant percentage of the capital of many financial institutions, mostly bank holding companies.Their ubiquity, both as a source of capital and as a common investment for banks, made them a quiet constant for many financial institutions. Even in the chaos of the Great Recession, standard TruPS terms allowed for the deferral of interest payments for up to five years, easing institutions’ cash-flow burdens during those volatile times. However, with industry observers estimating that approximately $2.6 billion in deferred TruPS obligations will come due in the coming years, many

Read More

Bankruptcy Judge Allows Involuntary Bankruptcy to Move Forward

September 3, 2014

Authors

Robert Klingler

Bankruptcy Judge Allows Involuntary Bankruptcy to Move Forward

September 3, 2014

by: Robert Klingler

On August 29, 2014, Judge John T. Laney, III, the Chief United States Bankruptcy Judge for the Middle District of Georgia, issued an order denying FMB Bancshares’ motion to dismiss the involuntary bankruptcy petition filed by its TruPS creditor, Trapeza CDO XII.  Among other conclusions, Judge Lacey found that the restrictions contained in FMB Bancshares’ written agreement with the Federal Reserve constituted a a restriction on the company’s ability to pay, rather than its legal duty to pay.  While detrimental to FMB Bancshares’ motion to dismiss, this conclusion should reinforce the ability of third parties to enter binding contractual

Read More

TruPS and Involuntary Bankruptcy

July 8, 2014

Authors

Jerry Blanchard

TruPS and Involuntary Bankruptcy

July 8, 2014

by: Jerry Blanchard

One of the most dramatic tools a lender can use in the collection of a loan is the involuntary bankruptcy case.  It is dramatic because of the implications for both the debtor and the lender who files the case. If a bankruptcy court determine that the petitioning creditor has not met the statutory requirements it may require the creditor to pay the debtor’s costs and attorneys fees in defending the petition and if the court finds that the petition was filed in bad faith it can award compensatory and punitive damages.  The consequences for the debtor are that if the

Read More

The Upcoming Trust Preferred Interest Deferral Cliff

January 7, 2014

Authors

Robert Klingler

The Upcoming Trust Preferred Interest Deferral Cliff

January 7, 2014

by: Robert Klingler

While we continue to emerge from the Great Recession, we are also approaching another cliff that could have significant ramifications for many community banks that continue to defer interest payments under their Trust Preferred securities.  Under the terms of such Trust Preferred, issuers are generally allowed to defer interest payments for up to twenty consecutive quarters (or five years) without triggering a default.  Many institutions began deferring interest payments about four and half years ago, both to preserve capital generally and in reaction to Federal Reserve Bank enforcement actions that limited the ability of banks to pay interest on the

Read More

August 2011 Client Alerts

September 2, 2011

Authors

Bryan Cave Leighton Paisner

August 2011 Client Alerts

September 2, 2011

by: Bryan Cave Leighton Paisner

U.S. Supreme Court Upholds Arizona’s Employment Verification Law

On May 26, 2011, the U.S. Supreme Court upheld the Arizona law that sanctions employers for hiring unauthorized aliens and endorsed Arizona’s requirement that employers use the federal E-Verify screening program.  A 5-3 majority of the Court found that language in the Immigration Reform and Control Act of 1986 did not pre-empt the Arizona Law.  For the answers to frequently asked questions about the Arizona law, please click here to read the Client Alert published by the Labor & Employment Client Service Group on August 4, 2011.

Employers Should Consider Expressly Prohibiting

Read More

June 2011 Client Alerts

July 16, 2011

Authors

Bryan Cave Leighton Paisner

June 2011 Client Alerts

July 16, 2011

by: Bryan Cave Leighton Paisner

The Implications for FCPA Enforcement of the SEC’s New Whistleblower Rules

The SEC’s recent adoption of rules to implement the whistleblower program mandated by the Dodd-Frank Act has particular significance for enforcement of the Foreign Corrupt Practices Act.  For a discussion of the overall SEC enforcement context for the new whistleblower rules, a summary of the rules,  and a discussion of the key issues for FCPA enforcement, including recommendations that companies should take now, please click here to read the Alert published by the Global Anti-Corruption Team of the Securities Litigation and Enforcement  and International Trade Groups on June

Read More

February 2011 Client Alerts

March 1, 2011

Authors

Jeannie Osborne

February 2011 Client Alerts

March 1, 2011

by: Jeannie Osborne

CPSC Opens Business Registration for New Consumer Product Safety Information Database

The new Consumer Product Safety Information Database is now available online on a trial basis, and will launch officially in March at www.SaferProducts.gov.  The Database allows a broad range of people to file so-called “reports of harm” informing the CPSC about an incident or concern that the submitter believes is an indication a product is unsafe or potentially hazardous.  To read more the database, please click here to see the Alert published by the Retail Team on February 3, 2011.

IRS Reverses Course — Breast Pumps and Other

Read More
The attorneys of Bryan Cave LLP make this site available to you only for the educational purposes of imparting general information and a general understanding of the law. This site does not offer specific legal advice. Your use of this site does not create an attorney-client relationship between you and Bryan Cave LLP or any of its attorneys. Do not use this site as a substitute for specific legal advice from a licensed attorney. Much of the information on this site is based upon preliminary discussions in the absence of definitive advice or policy statements and therefore may change as soon as more definitive advice is available. Please review our full disclaimer.