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Los Angeles, CA, United States, 2013/08/06 - Business litigation attorney John Keith’s article examines the effectiveness of “bankruptcy remote” special purpose entity borrowers, a tool used by lenders in recent years to protect them against bankruptcy filings - VRmlaw.com.
Valensi Rose, PLC attorney John C. Keith, who recently joined the Editorial Board of Los Angeles Lawyer Magazine, the Los Angeles County Bar Association’s official publication, authored “Bankruptcy Shelters: Public policy continues to weigh against the absolute effectiveness of bankruptcy remote entities,” which was featured in the magazine's July/August 2013 edition.
“Los Angeles Lawyer is devoted to the continuing education of attorneys. I've always found that if I spend just a little time with the magazine, I can learn something new. I think a lot of other lawyers feel the same, and I’m honored to join the editorial board of a publication that provides that kind of real world value to the legal profession,” said Mr. Keith. “The importance of my recent article is that, when it comes to bankruptcy, you can't just go by what's written in the contract. Because bankruptcy is a matter of federal law, no matter what the loan documents state, lenders should always assume that they could be drawn into bankruptcy court.”
Mr. Keith’s article examines the effectiveness of “bankruptcy remote” special purpose entity borrowers, a tool used by lenders in recent years to protect them against bankruptcy filings. Typically, lenders will insert themselves or their designees into the borrower’s management as nominally “independent” directors or managers, with the expectation of wielding veto power over the borrower’s ability to file bankruptcy.
Mr. Keith has a broad-based business litigation practice that includes bankruptcy, breach of contract and commercial disputes, breach of fiduciary duty and director and officer liability, fraud and business torts, insurance, intellectual property and trade secrets, partnership and LLC disputes, and securities and shareholder derivative actions.
Mr. Keith obtained his law degree in 2003 from the University of California, Berkeley School of Law. He was designated by Super Lawyers Magazine as a "Rising Star" among Southern California lawyers for 2013. He was also recognized in 2009 and 2010.
About Valensi Rose, PLC
Established in 1952, Valensi Rose, PLC (vrmlaw.com) is a full-service business law firm providing its clients with the broad range of legal services needed in a complex business environment. The firm is AV® rated by Martindale Hubbell (its highest rating). The firm's practice areas include: federal, state and international tax planning and related litigation; trust and estate planning, administration and related litigation; charitable planning; civil litigation; family and domestic relations law and mediation; real estate; debtor-creditor and bankruptcy law; business and corporate law; non-profit law; labor and employment law; and music, entertainment and intellectual property law.