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Third Circuit Rules Secured Lender Not Entitled to Credit Bid at Sale of Collateral Under a Cramdown Plan

On March 22, 2010, the Third Circuit in a split decision joined the Fifth Circuit in holding that a debtor may sell its assets under a plan of reorganization without permitting a secured lender to credit bid by offsetting its secured claim against the purchase price.  This decision may have major implications for secured lenders and may lead to more contested confirmation hearings and litigation over valuation.  For more information, please read the Client Alert published by the Bankruptcy, Restructuring and Creditors’ Rights Client Service Group on March 30, 2010.

Summary of the Federal Reserve Board’s Final Gift Card Rules

On March 23, 2010, the Federal Reserve Board issued its final rule, a summary and analysis of the final rule, and the official staff interpretation of the final rule in connection with Title IV of the CARD Act.  The Final Rules are comparable to the proposed rules that were issued in November, and follow the gift card related provisions set forth in the CARD Act.  For a brief summary of key provisions of the Rules, please read the Client Alert published by the Financial Institutions Client Service Group on March 29, 2010.

Proposed Amendments to the Federal Sentencing Guidelines Emphasize the Importance of Having an Effective and Compliant Records Management Program – What Every Business Needs to Know

In January, the United States Sentencing Commission published proposed changes to the Federal Sentencing Guidelines.  Public hearings on the proposed amendments were held in March.  The Commissioners are to take final action on the proposals in April.  The amendments will be effective in November, unless Congress intervenes.  A major focus of the proposed amendments is on the document retention component of records management.  For a discussion of the proposed changes, please read the Client Alert published by the Records Management Team on March 24, 2010.

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