Insights on Financial Restructuring & Bankruptcy

Experienced finance attorneys are aware that a loan guaranty given by a sister company of the borrower (a “cross-stream guaranty”) or by a subsidiary of the borrower (an “upstream guaranty”), in which the guarantor has no ownership interest in the borrower, differs from a traditional guaranty given by a borrower’s owner or parent company (a “downstream guaranty”) since the cross-stream or upstream guaranty raises the question that such a guaranty may be unenforceable as a constructive fraudulent conveyance under title 11 of the United States Code (the “Bankruptcy Code”) and under state creditor’s rights laws.

ArentFox Schiff is pleased to announce the addition of partner Scott B. Lepene to its Financial Restructuring & Bankruptcy practice in the firm’s New York office. Scott has nearly two decades of experience handling matters involving insolvency and restructuring, business reorganization litigation, and distressed asset sales.

ArentFox Schiff is pleased to announce that 135 attorneys have been recognized by The Best Lawyers in America 2025, with two attorneys highlighted as “Lawyers of the Year” and 70 attorneys listed as “Ones to Watch.”

ArentFox Schiff is pleased to announce that the firm and three attorneys have been recognized in BankruptcyData’s Advisory Retentions and Group Activity Report for the first half of 2024.

ArentFox Schiff is pleased to announce that 20 practices and 20 attorneys have been ranked by The Legal 500 United States 2024 guide, including two Tier 1 rankings in Intellectual Property – Patents: Prosecution and Finance – Restructuring: Municipal.

ArentFox Schiff is pleased to announce that 70 attorneys were recognized as leaders in their field and 23 practices spanning the firm’s litigation, regulatory, and transactional capabilities were ranked among the best in the country in the 2024 edition of Chambers USA: America’s Leading Lawyers for Business.

ArentFox Schiff Financial Restructuring & Bankruptcy partners Beth Brownstein, M. Douglas Flahaut, and associate Matthew Bentley will speak at the upcoming Bankruptcy & Restructuring Conference presented by the Association of Insolvency and Restructuring Advisors (AIRA).

On May 14, Outfox Hospitality LLC, the parent company of the retail chain Foxtrot Market, along with its affiliates, filed for Chapter 7 bankruptcy protection in the Bankruptcy Court for the District of Delaware, with the leading bankruptcy case titled In re Outfox Hospitality LLC, Case Number 1:24-bk-11008 (TMH).

On April 25, the US Court of Appeals for the Third Circuit issued its precedential opinion in Mallinckrodt v. Sanofi-Aventis, Case No. 23-1111.

In an industry known for its fast-paced changes, 2024 will be no different for cannabis.

Welcome to the April 2024 issue of “As the (Customs and Trade) World Turns,” our monthly newsletter where we compile essential updates from the customs and trade world over the past month.

A significant recent decision by the Fifth Circuit Court of Appeals in the case of Raymond James & Assocs. V. Jalbert (In re German Pellets La., L.L.C.), 91 F.4th 802 (5th Cir. 2024) (German Pellets), underscores the potential risks and consequences of choosing to observe from the sidelines.

Complex Litigation Partner Jackson Toof will moderate a panel at the American Bankruptcy Institute and Association of Insolvency & Restructuring Advisors’ annual VALCON Conference in New Orleans, Louisiana, on March 18-20, 2024.

ArentFox Schiff was honored by The M&A Advisor with its Section 363 Sale of the Year ($10MM to $50MM) for its representation of the Official Committee of Unsecured Creditors of Winc, Inc.

ArentFox Schiff partner George Angelich will be speaking at the upcoming 6th annual 6th Annual Asset Recovery International conference in Dublin, Ireland. George’s panel will center around the recent developments in US foreign recognition proceedings.

ArentFox Schiff is pleased to announce the addition of partner Todd Feinsmith to its Bankruptcy & Financial Restructuring practice in the firm’s Boston office.

This constitutes the third in a four-part series that discusses the practice of repledging (sometimes referred to as “rehypothecation”), how standard agreements allow for repledging, the treatment of repledging under current law, the potential pitfalls of which borrowers should be aware, and how borrowers can protect themselves going forward.

In a turbulent economy, political hyper-partisanship and policy dysfunction create large uncertainties for practitioners.

In light of the banking failures of Silicon Valley Bank, Signature Bank and First Republic (as well as Credit Suisse), this summer, the Federal Reserve and the FDIC proposed guidance and rules for larger banks.

ArentFox Schiff has been awarded 62 top rankings in the 2024 edition of Best Law Firms® which recognizes firms for professional excellence based on consistently positive ratings from clients and peers.

ArentFox Schiff is pleased to announce that 130 attorneys have been recognized by The Best Lawyers in America 2024, with an additional four attorneys highlighted as “Lawyers of the Year” and 69 attorneys listed as “Ones to Watch.”

With rising interest rates, one strategy a debtor can pursue as part of a reorganization is to reinstate a defaulted loan that has a below market rate.

Effective April 15, 2023, Visa has implemented a reduction in the permissible merchant surcharge to the lower of: (a) the merchant discount rate (MDR) for the applicable credit card or (b) 3%.

Our Bankruptcy & Financial Restructuring Practice was selected as counsel to the Official Committee of Unsecured Creditors in the Chapter 11 bankruptcy case for PGX Holdings Inc.

ArentFox Schiff is pleased to announce that Matthew Bentley has been selected to participate in the National Conference of Bankruptcy Judges (NCBJ) annual Next Generation Program.