SRZ partner Michael E. Swartz was quoted in the Financial Times on Vernon Hill’s complaint that Republic First Bancorp tried to oust him as chair to sell the company: “The complaint is rife with outrageous claims, which we look forward to refuting in due course.” Read the article here. 

Schulte Roth & Zabel partner Ele Klein shares his thoughts in this week’s DealBook newsletter by Andrew Ross Sorkin at The New York Times, regarding Elon Musk’s declaration that his Twitter deal is on hold over the number of bots. “Musk may well keep tweeting about bots because otherwise, he’s got no card to play,” said Ele.

Many are speculating that Musk is trying to renegotiate his deal. Ele notes, “For Twitter, it then becomes a question of, how long do they want to keep fighting. I think life’s too short to fight with Elon Musk.”

Read the newsletter here.

A “federal [fraudulent transfer claim under Bankruptcy Code Section 548] is independent of [a] state-court [foreclosure] judgment,” held the U.S. Court of Appeals for the Sixth Circuit on December 27, 2021. Reversing the lower courts’ approval of a Michigan tax foreclosure sale, the Sixth Circuit reasoned in In re Lowry that:

[T]he amount paid on foreclosure bore no relation at all to the value of the property, thus precluding the . . . argument that the sale was for “a reasonably equivalent value” under the rule of BFP v. Resolution Trust Corp., 511 U.S. 531, 544–45 (1994) [(reasonably equivalent value is the price actually received for the property at a foreclosure sale, so long as that sale satisfied all the requirements of state foreclosure law)].

Accordingly, the court remanded the case for “consideration of further arguments not fully developed below.”