Sentences with phrase «substantive consolidation»

Substantive Consolidation of the interests of the Company itself and its OPMI stockholders is a relatively rare special case.

Since substantive consolidation is a myth, corporations are unlikely to undertake an NPV analysis using as a standard ideas of what shareholders could earn, risk adjusted, on funds distributed to them rather than retained by the firm.

He advises financial institutions and other businesses with respect to bankruptcy and creditors» rights matters, including loan workouts and restructurings, tax matters, bond defaults, and issues legal opinions on substantive consolidation and true sale and other bankruptcy related issues.

Simply put, absent substantive consolidation, it would be too costly to allocate claims and disentangle 140 otherwise thoroughly integrated estates.

Judge Jernigan first examined substantive consolidation, noting that the Fifth Circuit has not yet developed its own standard.

We have an outstanding record of success in pursuing or defending against litigation in virtually every aspect of distressed investing, including breach of fiduciary claims, preference and fraudulent transfer litigation, subordination disputes, intercreditor fights, and litigation over substantive consolidation and enterprise or asset valuation.

In FF there is no substantive consolidation but plenty of structural subordination.

EVA bottoms on an assumption of a substantive consolidation between the company and short run OPMIs.

Indeed, TAVF rejects, as a tool of analysis, any system which assumes that there exists a substantive consolidation between the interests of the corporation, itself, and the interests of those OPMIs who emphasize short run prices in securities markets.

Moreover, it was argued that Justice Newbould erred in considering an inappropriately low threshold for the application of substantive consolidation.

First, the moving parties argued that a pro rata allocation of the Lockbox funds was tantamount to a worldwide «substantive consolidation» of the debtor estates that ignored well - established principles of corporate separateness.

However, the good news is that while such «substantive consolidation» of non-debtors with debtors is possible, it is generally unlikely.

Indeed, if a single creditor of the non-debtor company will be harmed by the substantive consolidation of such company with affiliates in bankruptcy, the risk of such substantive consolidation becomes relatively remote.

In broad strokes, the plan called for the substantive consolidation of Adeptus's 140 different debtor entities for plan, voting, and distribution purposes; Deerfield's contribution to equity holders of a portion of its recoveries on its significant deficiency claims from a litigation trust; and the vesting of the reorganized entities» equity in Deerfield in exchange for its secured and DIP debt.

Despite the global settlement, a handful of other creditors and the US Trustee objected to the plan's confirmation arguing, among other things, that substantive consolidation and Deerfield's sharing plan proceeds with equity violates Bankruptcy Code priorities and the Supreme Court's recent decision in Czyzewski v. Jevic Holding Corp., 137 S. Ct. 973, 197 L. Ed.

After a two - day confirmation trial, Judge Stacey G.C. Jernigan overruled those objections, confirmed the plan, and later issued a written memorandum opinion, which provide practitioners and interested parties with useful guidance on key Chapter 11 issues, substantive consolidation and gifting post-Jevic.