The First Circuit Court of Appeals in the recent case Mission Product Holdings, Inc. v. Tempnology, LLC refused to recognize certain protections for trademark licensees when the licensor files bankruptcy and seeks to reject the license. Rejection is a bankruptcy term of art and refers to the ability of a debtor, pursuant to Bankruptcy Code…

Certain amendments to the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) became effective in all cases commenced after December 1, 2017. The amendment to Bankruptcy Rule 3002 is significant and does the following:

  • It shortens the deadline to file a proof of claim to 70 days after the bankruptcy filing; and
  • It requires secured claims…

The Bankruptcy Code gives secured creditors certain rights and protections. For secured creditors whose collateral is worth more than the creditor’s claim, these rights may include payment of attorney’s fees and post-petition interest at a rate agreed to in the debtor’s and creditor’s prepetition agreement. A chapter 11 bankruptcy plan, however, may have provisions in…

Creditors lacking liens to secure their claim can fare poorly in a bankruptcy case. The “absolute priority rule” is a bedrock principle of bankruptcy law and provides that a creditor at a particular rung of the claim priority hierarchy must be paid in full before any money flows down to junior creditors. Secured creditors reside…

The Bankruptcy Code provides protection to unsecured creditors by directing the United States Trustee (“UST”) to appoint a statutory committee to represent such creditors in Chapter 11 cases.  The Bankruptcy Code also says that the UST may appoint additional committees of creditors or equity security holders as the UST thinks is appropriate.  Official committees, i.e.,…