Thursday, November 12, 2015

#TBT: Are Subsidiaries Really Bankruptcy Remote?

This post is part of an occasional series highlighting a project finance article or news item from the past. It is often interesting and thought provoking to look back on these items with the perspective of months, years or decades of further experience. 

With this installment, we turn to an article that was published in the October 2005 issue of the Project Finance NewsWire and was co-written by Christy Rivera, counsel in Chadbourne's Bankruptcy group.

Are Subsidiaries Really Bankruptcy Remote?


A US appeals court decision in August is a reminder to lenders that there is a danger that even a “bankruptcy remote” borrower can have its assets swept up in a bankruptcy proceeding involving a parent company or other affiliate.

A bankruptcy court might “substantively consolidate” the borrower with the company in bankruptcy.

Friday, November 6, 2015

Clean Power Plan: Five Things to Know About the Clean Energy Incentive Program

Sue Cowell, in Washington

While everyone is keeping an eye on how the Clean Power Plan litigation plays out, developers of wind, solar, and demand-side energy efficiency projects are also very interested in monitoring, and helping shape the development of the Clean Energy Incentive Program (CEIP). 

By way of background, the Clean Power Plan requires a 32 percent reduction in CO2 emissions from affected existing electrical generation units by 2030.  States are to prepare implementation plans describing how they will achieve their obligations under the Clean Power Plan; however, the EPA will implement a federal plan for those states that don't submit a plan, or fail to get EPA approval of their plans.