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The Bottom Line In Lehman Brothers Special Financing Inc. v. Branch Banking & Trust Co. (In re Lehman Brothers Holdings Inc.), No. 18-1079, --F.3d--, 2020 WL 4590247 (2d Cir. Aug. 11, 2020), the Second Circuit held that provisions in a swap agreement calling for the alteration of payment priority upon a debtor's bankruptcy are enforceable under the safe harbor of Section 560 of the Bankruptcy Code notwithstanding that they might otherwise be considered invalid ipso facto [...]

I. Introduction Complex restructurings are no stranger to colorful facts and unpredictable twists and turns. But few lead to criminal charges. Fewer still involve criminal charges against the chairman of the unsecured creditors' committee, alleging that he abused his position to benefit himself financially. On September 3, 2020, federal authorities arrested Daniel Kamensky, the co-chair of the Official Committee of Unsecured Creditors (the "Committee") in the Neiman Marcus Group Ltd. bankruptcy proceedings and the founder [...]

Trying to collect money from someone who cannot or will not pay you is frustrating. That old chestnut about throwing good money after bad comes to mind. Placing an individual or firm into bankruptcy is arguably the most powerful (and consequential) creditor remedy to secure payment from the entity that owes it money (the "debtor"). But it should not be undertaken without careful thought and planning. A creditor should ask the following six questions before [...]