HHR Bankruptcy Report

Category Archives: Debtor-in-Possession Financing

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Bankruptcy Court Exercises Jurisdiction Over Foreign Defendant Based on Consent to Jurisdiction Clauses in Loan Agreement and DIP Order.

Posted in Chapter 11, Debtor-in-Possession Financing
The United States Bankruptcy Court for the Southern District of New York recently held that it had personal jurisdiction over a foreign defendant that was paid funds pursuant to the Court’s order approving the debtors’ post-petition financing (the “DIP order”), denying defendant Immigon’s[1] motion to dismiss an adversary proceeding commenced by the Motors Liquidation Company… Continue Reading

TMT Procurement – DIP Lender Did Not Meet “Good Faith” Requirement

Posted in Chapter 11, Debtor-in-Possession Financing, Fifth Circuit
The Fifth Circuit recently held that a debtor-in-possession (DIP) lender did not qualify as a “good faith” lender, overturning orders of the United States District Court and Bankruptcy Court for the Southern District of Texas, including a final order approving DIP financing.  In re TMT Procurement Corp., 764 F.3d 512 (5th Cir. 2014).   Notably, the… Continue Reading