Lehman Feb 16

Client Attorney Privileged/Attorney Work Product/At Request of Counsel

Comment - European Insolvencies

1. Investors Eye Friendlier Turf For European Workouts

   Feb 13, 2015 | Law360

   By Andrew Scurria
   
   
   ...Judge Peck, who presided over the bankruptcy of Lehman Brothers Holdings Inc., said that restructuring professionals in mainland Europe look with envy toward the U.K. system and prefer Chapter 11 even more. Unlike in a scheme of arrangement, companies do not need to be insolvent in order to qualify for Chapter 11...

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Client Attorney Privileged/Attorney Work Product/At Request of Counsel

Comment - European Insolvencies

1. Investors Eye Friendlier Turf For European Workouts

   Feb 13, 2015 | Law360

   By Andrew Scurria

   Hedge funds that pounced on high-yield opportunities in Europe are worried about protecting their positions under mainland European insolvency regimes, leading some to coalesce and push distressed enterprises to restructure in friendlier U.S. and U.K. venues, attorneys said at a Friday panel.
   
   Asset management firms holding debt in flagging international corporations can find themselves at the mercy of local insolvency regimes, many of which lack the creditor protections offered by Chapter 11 or the U.K.’s parallel restructuring system. Discrepancies among insolvency regimes are a hot topic with companies filing bankruptcy proceedings in multiple jurisdictions to gain broad protections over their assets from creditor collection efforts.

   ...Judge Peck, who presided over the bankruptcy of Lehman Brothers Holdings Inc., said that restructuring professionals in mainland Europe look with envy toward the U.K. system and prefer Chapter 11 even more.
   
   Unlike in a scheme of arrangement, companies do not need to be insolvent in order to qualify for Chapter 11, a feature that lets companies obtain court protection before their business is beyond saving and gives them a better shot at surviving the reorganization process.
   
   Despite the number of corporations launching multiple insolvency cases at once, courts in European and U.S. jurisdictions haven’t yet developed protocols for cooperating. More than a dozen Lehman Brothers entities filed for bankruptcy in courts all over the world in 2008, but the presiding judges largely failed to coordinate for fear that doing so would undermine the integrity of each local regime, according to Judge Peck....
   
   For full story:

   http://www.law360.com/articles/621892/investors-eye-friendlier-turf-for-european-workouts
   

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