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Just File Your Notice of Appeal!

Generally, a notice of appeal of a bankruptcy-court order must be filed “within 14 days after entry of the judgment, order, or decree being appealed.” Fed. R. Bankr. P. 8002(a)(1). But what if a litigant’s motion for attorneys’ fees or costs incurred in connection with the judgment remains pending on the fourteenth day after entry? The First Circuit recently answered this question unequivocally: File the notice of appeal!

In In re Empresas Martínez Valentín Corp., No. 18-2103, 2020 U.S. App. LEXIS 2701 (1st Cir. Jan. 28, 2020), creditor PC Puerto Rico (“PCPR”) filed its notice of appeal 237 days after the fourteen-day deadline, waiting for the bankruptcy court to decide the Debtor’s motion for attorneys’ fees and costs incurred in litigating the adversary proceeding to judgment. PCPR argued that the notice of appeal was timely because: (i) the time for appeal did not begin until

The Stalking Horse Bid Protections: The Auction Credit Conundrum, and How to Avoid It

The Scenario

You’re an investor kicking the tires on a company in bankruptcy. If you agree to be the “stalking horse” bidder, you’ll expend significant time and money vetting the opportunity (including attorneys’ fees, quality of earnings analysis, valuation and appraisal work, and site visits), only to possibly end up in a bidding war with others wanting a free ride on your due diligence.

To lure you in, the debtor offers you $250,000 in “Bid Protections” (total breakup fee and expense reimbursement) if you don’t win at auction. Not only that, you’ll get a credit toward your cash bid at the auction in the amount of the Bid Protections.  This makes sense, you think, because the economic value of a competing bid is deflated by the $250,000 in Bid Protections that must be paid to you if the competitor is ultimately successful.  So to compare the economic value of

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