Bill on Bankruptcy: Supreme Court Cases Will Have Wide Impact
June 27 (Bloomberg Law) — The two bankruptcy cases going before the U.S. Supreme Court in the term beginning in October are the first topics of conversation on the video with Bloomberg Law’s Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle.
A foreign shipping line, with seven of 17 vessels already seized by creditors, will present Houston Bankruptcy Judge Marvin Isgur with the question of whether the company has sufficient contacts with the U.S. empowering him to free the ships from arrest.
The video ends with discussion of three important new opinions. In the first, the chief judge for the U.S. Court of Appeals in Manhattan handed a loss to the trustee for Bernard L. Madoff Investment Securities Inc. while at the same time saying it might be a good idea were legislatures to change law by allowing trustees to sue for the collective benefit of creditors.
All the judges on federal Circuit Court of Appeals in St. Louis have a chance to head off an appeal to the Supreme Court by reversing a decision from a three-judge panel allowing bankrupt companies to terminate agreements allowing third parties to use trademarks. On an issue likely go to up on least twice on appeal, Rochelle talks about a decision in the liquidation of Lehman Brothers Inc. where a party to a repurchase agreement was denied a customer claim in the liquidation of a broker.