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Coppola v. Bear Stearns & Co., 2007 WL 2489787 (2d Cir. 2007) (employer's creditor was not employer under WARN Act even though creditor allegedly took over employer's failing business, installed a manager, and fired and replaced officers to try to facilitate a sale and recover its $5.6MM in loans; thus creditor not liable to employee's when employer's principal offices were closed without warning).
The first reported decision on standards for bypassing the district court and going directly to the court of appeals is Weber v. United States Trustee, 484 F.3d 933 (2d Cir. 2007) (discussing standards for application of the 28 U.S.C. S158(d) for appeals directly to court of appeals; court should limit to cases raising controlling questions of law, matters of public importance, and matters arising under circumstances where a prompt determinative ruling might avoid needless litigation; one example would involve pure questions of law where there is an absence of precedent; generally, don't use bypass for "fact intensive" cases or cases where district court review would be helpful).
There is considerable uncertainty whether the new provisions of chapter 15 will be applied to required administration of cases involving offshore funds in the place of incorporation even if the funds had no significant business activities in such locations. A recent decision refused to do so. In re Bear Stearns High-Grade Strategies Master Fund, 374 B.R. 122 (Bk. S.D.N.Y. 2007); cf. In re Sphinx, Ltd., 371 B.R. 10 (S.D.N.Y. 2007) (Cayman Islands was really a letterbox and debtor carried out no activities in that location). A similar case is In re Basis Yield Alpha Fund (Master), 49 BCD P89 (Bk. S.D.N.Y. 2008) (court had power to inquire, especially where questions of extent of activities in Cayman Islands; absence of objection not conclusive).
A decision by the New York Court of Appeals holds that one lender in a syndicated loan arrangement lacks standing to sue a debtor for breach of contract in the face of agreement of other lenders to settlement agreement. The Court held that the documents provided for collective action in the event of a default and barred an individual lender from obtaining a separate remedy. The lender argued that, in a syndicated loan, the lender had its own direct rights and was not precluded from acting by the loan documents. Beal Savings Bank v. Sommer, 8 N.Y.2d 318, 834, N.Y.S.2d 44 (2007).
In bankruptcy sales, Courts will protect the buyer as to liabilities assumed. For example in Al Perry Enterprises, Inc. v. Appalachian Fuels, LLC, 503 F. 3d 538 (6th Cir. 2007), the Sixth Circuit held that the purchaser of the Debtor's assets (which included an assignment of its contracts), did not assume certain a requirement that the debtor pay certain commissions on sales which had been imposed as a result of state court litigation. The Court rejected the argument that assumption of the contract implicitly included the commission obligation; the sale was free and clear of liens, claims and encumbrances, the
