Emory Bankruptcy Developments Journal

Volume 28Issue 1

Solving Insolvent Public Pensions: The Limitations of the Current Bankruptcy Option

Hannah Heck | 28 Emory Bankr. Dev. J. 89 (2011)

This Comment summarizes current economic factors driving the recent increased likelihood of municipal insolvency, explores the unique taxpayer and voter constituency impacting municipal bankruptcy, and provides a brief background of municipal bankruptcy law. This Comment also proposes changes in local practice and state and federal law that are necessary to allow municipalities in crisis to fairly and effectively manage pension obligations.

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Extra! Extra!: Philadelphia Newspapers Jeopardizes Credit Bidding

Merriam Mikhail | 28 Emory Bankr. Dev. J. 135 (2011)

Secured creditors have generally enjoyed the opportunity to credit bid at the public auction of their collateral during bankruptcy proceedings. Recently, however, the Third and Fifth Circuits have authorized unprecedented cramdown plans that allow sales of collateral free and clear of liens to be authorized under § 1129(b)(2)(A)(iii) of the Bankruptcy Code. Consequently, they have permitted secured creditors’ once powerful credit bidding rights, granted in § 1129(b)(2)(A)(ii), to be circumvented. This Comment supports the plausible catch-all reading of § 1129(b)(2)(A) ignored by the majorities in Philadelphia Newspapers and Pacific Lumber.

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A “Fundamental” Problem: The Vulnerability of Intellectual Property Licenses in Chapter 15 and the Meaning of § 1506

Daniel A. Nolan IV | 28 Emory Bankr. Dev. J. 177 (2011)

While the United States has been able to protect the growth of intellectual property within its own borders, especially in the context of the Code, the increasingly global economy has left these protections ineffective in international insolvency cases. Current law leaves intellectual property licenses vulnerable to foreign laws that allow debtors to unilaterally and completely cancel the license, contrary to United States law. This severely threatens the continuing growth of intellectual property in the United States. This Comment suggests that § 1506 allows courts to deny comity where needed to protect intellectual property licenses. Doing so will ensure the security of such licenses in a chapter 15 case, thereby promoting a robust licensing market and ultimately encouraging continued investment in the development of intellectual property in the United States.

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Anything But Automatic: Dismissal Under § 521

Mantas Valiunas | 28 Emory Bankr. Dev. J. 231 (2011)

This Comment will look at how a narrow reading of § 521(i) leads to an automatic dismissal which encourages abuse of the bankruptcy system by dishonest debtors. While a strict and rigid application of § 521(i) requirements allows dishonest debtors to manipulate the system, it also leads to unfavorable outcomes for honest debtors. If any documents or information have not been filed in a timely manner, then a bankruptcy case may be dismissed automatically. Although there are several solutions, including the promotion of judicial discretion and the use of waiver forms, this Comment suggests an amendment to the Code that will promote fairer results for debtors.

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