Category: Tax
A Sweet Victory: New Value Defense Bolstered by Court’s Protection of Ice Cream Vendor
You have fresh goods delivered to your largest customer daily, as has been the case for as long as you can remember. You noticed over the last few months that payments have become less frequent—weekly instead of twice weekly—and occasionally have been paid over a week late. On top...
Clear Thinking Required When the Chips Are Down
One important attribute of any successful entrepreneur or business owner is knowing when to enter a new line of business or invest in equipment or employees to bolster an existing, growing service line. Another (perhaps even more important) attribute is knowing when to stop spending time, money and effort...
When Contracts and Bankruptcy Collide, a Short Term May Be Better in the Long Term
As we learned during the downturn in 2008, the economic climate can change rapidly. When things are going well, many businesses forget the lessons of the past. No matter what industry your business is in, there may be occasions when you are asked to enter into a relatively long-term...
What 2017 May Bring for the Restructuring Community
We asked some of our financial advisor colleagues to give us brief readouts on what they felt 2017 has in store for us now that we have gotten beyond the inauguration and into the first weeks of the Trump administration. Their thoughts follow: We have been seeing a lot...
The Ninth Circuit Loosens the Cap on Landlord Damages in In re Kupfer
Any property owner which has experienced the bankruptcy of a tenant is doubtless keenly aware of the limitation on damages which the Bankruptcy Code imposes on the landlord. A new decision by the Ninth Circuit bolsters the position of landlords in this long-running tussle. Section 502(b)(6) Cap Refresher Before...
December 1, 2016 Revisions to the FRBPs: Taking the Bite Out of the Core-Noncore Distinction
On December 1, 2016, something extraordinary happened. No, it was not president-elect Trump visiting another Carrier air conditioning factory in Indianapolis. It was an event that made no headlines and caused no stir. The Federal Rules of Bankruptcy Procedure were silently amended to remove all references to “core” and...
Escaping Taxes in Bankruptcy Through S Corporations
Editor’s note: this blog post was recently published in Law360. Shareholders of financially troubled S corporations may now be able to avoid the flow-through of taxes when the S corporation or its subsidiary files bankruptcy. In In re Majestic Star Casino, LLC , 716 F.3d 736 (3rd Cir. 2013), the Third...