The Bankruptcy Court for the Southern District of New York issued an important ruling in a Madoff related matter, dismissing all claims against the Firm’s banking client. The trustee for the liquidation of Bernard L. Madoff Investment Securities LLC (“BLMIS”) sued the Firm’s client to recover more than $50 million in funds transferred to the client from a B.V.I. investment fund. BLMIS contended that the funds were initially transferred from BLMIS to the B.V.I. fund.
Working with a large defense group of similarity situated banks, the Firm argued that BLMIS’s claims were barred by the principles of international comity and the prohibition on extraterritorial application of certain bankruptcy provisions. In a complete victory, the U.S. bankruptcy court issued a 94-page ruling, dismissing the claims on the grounds of international comity.
The 2016 Norton Annual Survey of Bankruptcy Law published the attached article by Alec P. Ostrow called “Cannily Employing a Strict Construction of the Inclusion in Administrative Expenses.” The article focuses on a surprising majority decision by the Sixth Circuit court of appeals in connection with reimbursable expenses and attorneys’ fees of creditors in bankruptcy cases. The statute expressly authorizes these reimbursements for creditors making a “substantial contribution” in chapter 9 municipality cases and chapter 11 reorganization cases. As a result, most courts and practitioners had concluded that such reimbursements were unavailable in chapter 7 liquidation cases. The majority held otherwise over a strong dissent. The article discusses the majority’s rationale and its potentially significant consequences in other contexts, especially for the payment seemingly prohibited or restricted fees, and other kinds claims.
The October 2016 issue of the ABA Section of International Law – M&A and JV Committee Newsletter published the attached article by Becker Glynn’s Kenneth J. Stuart called “Capital Acquisition Brokers: A New SEC Registration Category Providing Clarity And Relief for M&A Brokers.”
In connection with an earlier News item, the Firm secured in an important appellate victory for an Argentine Energy company, which was sued by a B.V.I. investment company in connection with an $80 million transaction. The two companies considered working together to purchase a third company. The Firm’s client purchased the third company without the B.V.I. company. The B.V.I. company sued in New York for alleged breaches of a “non-circumvent” agreement. The Firm’s lawyers moved to dismiss the claims for failure to state a cause of action, without having to conduct any discovery. Relying on an exception to the normal rule prohibiting the use of documentary evidence on a pre-answer motion to dismiss, the Firm’s lawyers successfully persuaded the New York court to dismiss all of the claims outright. The New York Appellate Division affirmed the dismissal.
Of counsel Ken Stuart was one of the speakers at the Inter-Pacific Bar Association Annual Meeting April 13-16, 2016 in Kuala Lumpur, Malaysia, participating in a program on “Outside Directors and/or Independent Directors: Diversity in Corporate Governance.” Joined by speakers from Japan, Singapore, Indonesia and Vietnam, the program surveyed the requirement in various jurisdictions for a minimum number of independent directors on a managing board, and the expected role and eligibility of an independent director, exploring the reasons for the difference among countries in relation to independent directors.
Matias Alejo Sueldo joined Becker Glynn in 2016 as an associate in the Corporate and International practice groups. His work primarily focuses on cross-border transactions and financings, as well as corporate governance. Prior to joining the firm, Mr. Sueldo practiced in the New York office of Freshfields Bruckhaus Deringer.
Jonathan J. Marcus joined Becker Glynn as an Associate in 2016 and is a member of the firm’s litigation group. His practice involves a wide variety of commercial disputes, including intellectual property disputes and asset valuations. Mr. Marcus has a special interest in matters involving complex damages and those related to technology and communications. He has experience litigating cases involving pharmaceuticals, telecommunications, and corporate transactions. Mr. Marcus has extensive trial experience, as well as a deep commitment to resolving client issues in an efficient and effective manner through sensible dispute resolution.
In addition to his work as a litigator, Mr. Marcus is an associate member of the board of Volunteer Lawyers for the Arts and commits several hours each month to consulting with artists and non-profit organizations to provide both practical and legal advice about their respective endeavors. His commitment to pro bono work is notable: he has twice been commended by the Legal Aid Society for employment litigation.
The Firm served as international transaction counsel to International Finance Corporation (IFC), the private sector arm of the World Bank Group, in connection with a $200 million loan to Banco Itaú Chile to support the expansion of access to finance for small and medium enterprises, helping to foster the development of a key sector for the Chilean economy. Finance-monthly.com April 2016
Becker Glynn represented leading high-end Italian lighting group, Flos SpA, in its acquisition of Lukas Lighting, Inc. Lukas Lighting, based in New York, designs, develops, and manufactures custom lighting products primarily for corporate, retail, and hospitality interiors. Flos SpA is owned by InvestIndustrial, an Italian private equity firm.
The Firm advised Mr. Eduardo Hochschild in connection with the approximately £65 million rights issue by Hochschild Mining plc. Hochschild Mining is listed on the London Stock Exchange and is a leading producer of precious metals, focused on the exploration, mining and processing of silver and gold in Latin America. Prior to the rights issue, Mr. Hochschild indirectly owned approximately 54% of the shares of Hochschild Mining. Through a wholly owned company, he subscribed in the rights issue for approximately £35 million in ordinary shares of Hochschild Mining and maintained his percentage interest in the company. The Firm advised Mr. Hochschild on his commitment to subscribe for shares in the rights issue and on the sourcing of funds to be used for the purchase.