Throughout 2017 and continuing into 2018, the Young and New Members Committee (the “Y&NM Committee”) leadership produced a variety of helpful materials and programs, and continued to encourage new and young ABI members to become more active in the organization. Just some of those highlights are discussed below.

Conference Programs

At ABI’s Annual Spring Meeting, the Y&NM Committee partnered with the Bankruptcy Litigation Committee to present Stern Revisited: In re Millennium Labs and Beyond. We would like to thank our excellent moderator, Patrick Birney, and our superb panelists, Gianfranco Finizio, J. Leland Murphree, Shane G. Ramsey and Nicole Stefanelli, for making this event a rousing success, with a packed room and engaged attendees.

At this year’s Winter Leadership Conference in December, the Y&NM Committee is partnering with the International Committee and seeking to highlight ABI “40 Under 40” recipients who have international expertise. Our topic and speakers are pending approval by ABI, but this presentation will be one to look forward to.

Webinar

On April 3, 2017, the Y&NM Committee held a webinar on the impact of the ASARCO v. Baker Botts decision in professional fee litigation, covering a variety of post-ASARCO bankruptcy rulings, including open issues, trends and practice points. Our presenters, Kyle Hirsch, Shanti Katona and Abigail Willie, did an excellent job putting this presentation together on an issue important to us all. This webinar is available, free of charge, to ABI members in the eLearning Center.

The Bernie Madoff investment scandal unleashed a slew of lawsuits, and at first glance, SPV OSUS Ltd. v. UBS AG may seem like just another drop in the bucket. However, this case is notable for its expression of the Second Circuit’s rather extraordinary view of “related to” bankruptcy jurisdiction. This article reviews the case and analyzes the court’s ruling.

From Ponzi Victim to Plaintiff: The Facts

SPV OSUS Ltd. (SPV) was the assignee of a company that invested funds with Bernard L. Madoff Investment Securities LLC (BLMIS). After suffering losses due to the well-publicized Ponzi scheme, SPV sued UBS AG (UBS) and other foreign defendants in New York state court, alleging that the defendants had assisted in the scheme by steering investments to BLMIS. BLMIS is currently in liquidation proceedings in the U.S. Bankruptcy Court for the Southern District of New York. The defendants removed the action to district court, and SPV moved to remand to the state court.

Like their for-profit counterparts, nonprofit corporations face a variety of challenges throughout their corporate life cycles, some of which may lead an organization to pursue reorganization under chapter 11 of the Bankruptcy Code. One of the issues that arises during a nonprofit’s reorganization is whether its board of directors must continue to act pursuant to their fiduciary duties of care, loyalty and obedience under state law or must maximize the value of the bankruptcy estate for its creditors. This article will argue that a board of directors’ fiduciary duties of care, loyalty and obedience endure after the nonprofit files for chapter 11 protection. Accordingly, the board must continue to further the organization’s mission during reorganization.

ABI has recently undertaken an important strategic-planning initiative to gather first-hand information and feedback directly from insolvency professionals. Yesterday, you should have received an email (check your spam filter if you have not!) from McKinley Advisors, our partner in this research initiative, inviting you to participate in a survey. The data gathered from the survey will help inform the strategic planning process. Individual responses will be kept confidential, so we encourage you to provide your candid feedback. All respondents who complete the survey will receive a prize and have the opportunity to enter a drawing to win an all-expenses-paid trip to ABI's Winter Leadership Conference this December in Scottsdale, Ariz., or an Apple Watch!