Tomorrowland, Electric Zoo, Sensation, Stereosonic, Nature One. These famous music festival brands as well as the online electronic music store Beatport are just a handful of assets owned by the electronic dance music (“EDM”) giant SFX Entertainment, Inc. (“SFX”). On February 1, 2016, SFX filed for Chapter 11 bankruptcy after reaching an agreement with its…
Tag: Bankruptcy
In re Tribune and the Narrowing of “Safe Harbor” for Fraudulent Transfer Claims
The cases of In re Tribune Co. Fraudulent Conveyance Litig., 499 B.R. 310 (S.D.N.Y 2013) and In re Lyondell Chem. Co., 503 B.R. 348 (Bankr. S.D.N.Y 2014) have narrowed the bankruptcy code’s scope of “safe harbor” regarding fraudulent transfer claims and bolstered the general security of creditors looking to claw back proceeds from pre-bankruptcy LBO’s….
Made-in-America Clothing Retailer, American Apparel, Files For Bankruptcy
On October 5, 2015, the Los Angeles, California based American Apparel, Inc. (“Company”) filed for Chapter 11 bankruptcy protection in U.S. Bankruptcy Court for the District of Delaware.1 The next day, on October 6, 2015, the Company announced that the staff of NYSE Regulation, Inc. determined to suspend trading immediately and commence proceedings to delist…
New Chapter for Fraudulent Conveyance in LBOs?
In the wake of the 2008 financial crisis, many companies that were the targets of Leveraged Buyouts (LBOs) filed for bankruptcy.1 In an LBO, creditors secure their loans against the target company’s assets, subordinating the claims of the target’s pre-LBO creditors. Thus, should the LBO fail and the target company file for bankruptcy, its pre-LBO…