Educational

The Bankruptcy Code lists various types of entities which are defined as a “corporation.”  These include:

• association having a power or privilege that a private corporation, but not an individual or a partnership, possesses;
• partnership association organized under a law that makes only the capital subscribed responsible for the debts of such association;
• joint-stock company;
• unincorporated company or association; or
• business trust;

but further expressly excluding a limited liability partnership.  11 U.S.C. § 101(9).

On March 8, the Bankruptcy Court for the Southern District of New York issued a bench decision in the Sabine Oil & Gas Corp. Chapter 11 case that may have a dramatic impact on the relationships between producers and midstream (pipeline transportation) companies in the troubled oil and gas sector. (In re Sabine Oil & Gas Corp., 15-11835 (Bankr. S.D.N.Y. 2016)).

Introduction

Private equity firms are increasingly being hit with WARN Act claims.  These claims arise when a company terminates or layoffs off a large number of its employees without first issuing a statutorily prescribed notice.  Thereafter, the employees sue the company’s owners, active investors and possibly its lenders seeking recovery of statutory damages.

What is a WARN Act claim?

For years, experienced practitioners who were well qualified to achieve the credential of certification were a bit intimidated by the exam requirement.  After all, while they had many years of experience, they hadn't taken an exam since law school.  How could they prepare for an exam?  We heard these sentiments and worked to find a solution.