Basis Points

Tronox Incorporated and certain affiliates (the “Debtors”) emerged from Chapter 11 in February 2011 armed with a new capital structure and operational game plan, but that’s yesterday’s news. The flavor of the month is last Friday’s decision by Justice Allan L. Gropper (located here) in a still pending adversary proceeding in the United States Bankruptcy Court for the Southern District of New York (the “Court”) filed by the Debtors against Anadarko Petroleum Corporation and certain affiliates (“Anadarko”) seeking to recover an alleged fraudulent transfer. more…

The worldwide press has been humming that General Motors has finally taken back the pole position from Toyota as the worldwide sales leader. In contrast, stories about the General Motors bankruptcy have mostly stalled since the automaker’s plan of liquidation took effect last March. Until now. Late last week, the Bankruptcy Court for the Southern District of New York sent to the junkyard an adversary complaint filed by potential class claimants seeking partial revocation of the plan confirmation order under section 1144 of the Bankruptcy Code based on allegations that the confirmation order was fraudulently procured. more…

A recent decision by the Third Circuit in the Nortel Group bankruptcy reinforces the worldwide reach of the automatic stay and the narrow scope of the police power exception under section 362(b)(4) of the Bankruptcy Code.  In Nortel Networks, Inc. v. Trustee of Nortel Networks U.K. Pension Plan, No. 11-1895 (3d Cir. Dec. 29, 2011), the Third Circuit held that the automatic stay barred U.K. pension claimants from participating in U.K. proceedings meant to determine the debtors’ liability for their affiliate’s pension funding shortfalls. more…