News & Publications

On March 27, 2019, the United States Bankruptcy Court for the Northern District of West Virginia issued an opinion1 holding that an over-secured creditor could not recover a portion of the creditor's attorney's fees incurred in connection with the borrower's bankruptcy proceeding despite provisions in the loan agreement that provided for recovery of attorney's fees "incurred in connection with the enforcement" of the loan documents. The opinion underscores the need for (i) careful drafting of [...]

Seyfarth Synopsis: Employers increasingly find themselves in the difficult position of deciding whether to continue garnishing an employee's wages pursuant to a garnishment order when the employee files for bankruptcy. On one hand, the employer risks penalties for failing to withhold wages; on the other hand, the employer risks sanctions for violating the automatic stay generated by a bankruptcy filing. Below we discuss this dilemma and employers' options. MC Hammer filed for bankruptcy, claiming over $15 [...]

On 11 January 2019, the Council of Ministers approved the text of the legislative decree containing the new code of corporate distress 1 and insolvency (the "Insolvency Code"). The new code was adopted to implement Law 155 of 11 October 2017 (the "2017 Law"), with which the Parliament delegated the Government to reform the pre-insolvency and insolvency rules and proceedings so as to supersede the current bankruptcy law (Royal Decree 267/42, the "Bankruptcy Law"), somewhat outdated and fragmented by the [...]