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ACIC PRIVATE NOTES
Welcome to the Spring 2022 edition of the ACIC Private Notes! In this edition, you’ll find:
A lively recap of the 2022 Spring Investment Forum (authored by Wendy Harlan of Unum Group);
An article from Morgan Lewis describing a situation where a lender’s guaranty claim was reduced by a recovery in a debtor’s bankruptcy proceeding (reprinted with permission, obtained by Amy Beaudoin of John Hancock);
Recent case law summaries from the Rocky Mountain and Western Region, prepared by David Simonds and Edward McNeilly (both of Hogan Lovells); and
Recent case law summaries from the Southwest Region, prepared by Andrew Thomison of Baker Botts.
ACIC Spring Investment Forum Recap
Click here to read a fun recap of the even-more-fun 2022 Spring Investment Forum, which took place in person in Chicago earlier this year!
And don’t forget to please mark your calendars for the Fall Annual Meeting and Education Conference to be held this year in Boston! We look forward to seeing everyone again on October 20 & 21, 2022!
Guaranty Claim Reduction
When is a guaranty claim reduced by a recovery in a debtor’s bankruptcy case? Specifically, what happens if the debtor is subject to a bankruptcy case in which the lender obtains a recovery, and the guarantor’s bankruptcy occurs afterward? Click here to find out the Fifth Circuit’s take!
Rocky Mountain & Western Region Legal Update
In In re Figueroa Mountain Brewing, LLC, the United States Bankruptcy Court for the Central District of California refused to permit a secured creditor to credit bid for the debtor’s assets under section 363(k) of the Bankruptcy Code, finding that the secured claim was subject to a genuine dispute that constituted “cause” to deny credit-bidding rights. Click hereto learn more.
In In re S-Tek 1, LLC, the United States Bankruptcy Court for the District of New Mexico was asked to determine the scope of a creditor’s security interest in a chapter 11 debtor’s property. The Bankruptcy Court held the debtor had unambiguously granted the creditor a security interest in after-acquired accounts receivable, but that the creditor did not have a security interest in the debtor’s commercial tort claim or in funds payable or paid in settlement of the commercial tort claim. Click hereto learn more.
In In re Shoot the Moon, LLC, the United States Bankruptcy Court for the District of Montana held that (i) prepetition cash advances made by a merchant cash advance company to a chapter 11 debtor were disguised loans, not true sale transactions, (ii) certain transfers made to the merchant cash advance company were avoidable preferential transfers and (iii) the debtor was entitled to recovery attorney’s fees as the prevailing party under the parties’ contract. Click hereto learn more.
Updates from the Southern Region
In Deutsche Bank Nat’l Trust Co. v. Saihat Corp., the court held that a bank’s lien on a Texas residence survived an HOA foreclosure action because the HOA failed to properly give notice to the bank and join the bank to the action. Click hereto learn more.
In U.S. Bank N.A. v. Morris, the court held that because a bank repeatedly abandoned the acceleration of a loan and related foreclosure proceedings, the applicable statute of limitations had not expired when the bank exercised its foreclosure rights many years later. Click hereto learn more.