Category Archives: Bankruptcy

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Sub-Prime Auto Loan Delinquencies Continue to Rise, but Experts Provide Divergent Views of Impact

Nearly one year ago, we wrote about auto loan delinquencies’ potential impact on the automotive industry. Now, car sales are falling and auto loan delinquencies are making headlines again, with a growing number of subprime loans falling into default. UBS reports that subprime default rates are reaching levels consistent with those just prior to the … Continue reading this entry

Have the Good Times Ceased to Roll?

Ahhh, the heady days of 2016.  Remember that?  17.6 million vehicles sold in the United States.  As reported by Automotive News (and others), Deutsche Bank says those good times may very well be over and the Auto Industry may be in for some financial uncertainty.  Analysts Rod Lache, Michael Levine and Robert Salmon released a … Continue reading this entry

Supreme Court Bars Structured Dismissals of Bankruptcy Cases That Violate the Code’s Priority Distribution Scheme – Could it Affect Your Creditor Position?

On March 22, 2017 the Supreme Court issued its long-awaited ruling regarding the legality of structured dismissals of Chapter 11 bankruptcy cases that would make final distributions of estate assets to creditors in a manner that deviates from the Bankruptcy Code’s statutory priority distribution scheme.1 In Czyzewski v. Jevic Holding Corp., the Court held that such … Continue reading this entry

Delaware Bankruptcy Court Upholds Reclamation Creditors’ Rights

Vendors – take note! The Delaware bankruptcy court In re Reichhold Holdings US Inc. recently issued an important ruling for vendors asserting reclamation rights. Under section 546(c) of the Bankruptcy Code, a vendor may reclaim goods sold on credit to an insolvent debtor that has filed bankruptcy. Reichhold addressed an issue plaguing reclamation claimants:  does … Continue reading this entry

Enjoy Your Holiday Weekend!

The Dashboard Insights team wishes you a safe and happy Labor Day. We’ll be back to our regular posting on Thursday, September 8. Thanks for your continued support of our blog!… Continue reading this entry

Manufacturing Contracts in Distress

The automotive industry has recently enjoyed a strong period of sales growth and productivity. But even during this period, some manufacturers and raw materials suppliers continue to face pressures presented by financially troubled customers and suppliers. Witness for example the recent chapter 11 filings of Lee Steel Corporation and Chassix Holdings, Inc. In order to … Continue reading this entry

Top Legal Issues Facing Suppliers in 2015

Foley’s Automotive Industry Team has prepared this overview of the major trends we see affecting automotive suppliers this year. While not all legal risk can be anticipated, companies that are aware of litigation, enforcement, and regulatory trends will be one step ahead of their competition. Top issues include:… Continue reading this entry

Opportunistic Acquisitions: Buying Assets Through Bankruptcy

Though often overlooked, bankruptcy sales can be a real boon to businesses looking for a great deal. Prospective purchasers must, of course, interface with the bankruptcy court, so these companies must understand the lay of the land when looking for a bargain. For example, in the last two years, Wanxiang Group purchased an electric-powered-automobile manufacturer … Continue reading this entry

Recharging the Auction for Fisker's Assets

When Fisker filed bankruptcy in November, it planned to sell its assets to Hybrid Tech, the acquirer of Fisker’s $168.5 million loan from the Department of Energy, by way of credit bid. Before the sale (requiring the approval of the Bankruptcy Court) was consummated, another potential acquirer, Wanxiang Group Corp.,  emerged. Wanxiang originally offered $27.5 … Continue reading this entry

How One Struggling Auto Company Used Chapter 15 to Protect its U.S. Assets

Although its Israel-based electric car company had already filed bankruptcy in its home country, Better Place, Inc., the U.S. parent of the foreign debtor, filed for protection under chapter 15 of the Bankruptcy Code with the United States Bankruptcy Court for the District of Delaware earlier this summer, in the hopes of obtaining protection of … Continue reading this entry

Amendments to Article 9 of the Uniform Commercial Code Go Into Effect

A number of amendments to Article 9 of the Uniform Commercial Code (“UCC”) went into effect in many states on July 1, 2013. Similar amendments are pending in a number of other states. These amendments include several changes that have a significant impact on the search and file process for purposes of perfecting a security … Continue reading this entry

Automotive Industry on Track for Most Sales Since 2007

Those tracking sales for Automakers got good news from July. This continues a positive trend that we noted recently (http://www.dashboard-insights.com/2013/06/24/automotive-economic-indicators-show-promise/#more-). Strong sales now project to hit levels not seen since 2007. Many of the statistics have been reported all over, so we thought that we would highlight a few that we here at the Dashboard found most notable: … Continue reading this entry

Automotive Economic Indicators Show Promise

Equifax Inc. reported recently that new credit for auto loans reached an eight-year high in January and February 2013, as calculated by total dollar amounts loaned. For that two month period, new auto loans were 70% higher than in the same period in 2009. Equifax reports that 2.5 million auto loans were made in this same … Continue reading this entry

New U.S. Sanctions Target Automotive Companies Doing Business in Iran

On June 3, 2013, President Obama signed a new executive order expanding U.S. extraterritorial sanctions on Iran to multinational corporations that engage in significant financial or commercial transactions with the Iranian automotive sector. The move strengthens the new sector-based sanctions regime imposed under the Iran Freedom and Counter-Proliferation Act of 2012 (“IFCA”), which targets business … Continue reading this entry

The "Olympics of Restructuring": Kevyn Orr Named Detroit's EFM

Kevyn Orr, a University of Michigan Law School graduate and former partner at the law firm Jones Day, has been selected by Governor Rick Snyder as Detroit’s Emergency Financial Manager (EFM). As EFM, Orr will be responsible for overhauling Detroit’s finances and city services, including negotiating with creditors and unions to restructure the city’s obligations … Continue reading this entry

Potential Impact of Treasury's Proposed Sale of GM Stock on Old GM’s Creditors

Did you or your company have an allowed claim in the General Motors bankruptcy case? If so, have you sold your allowed claim or the stock and warrants you received on account of your claim? If not, the U.S. Department of Treasury’s recent announced that it is planning to sell its remaining stake in new General Motors (“New GM”) in the … Continue reading this entry