Recent Developments in Bankruptcy Law -

Cumulative, through April 2023 -

1. AUTOMATIC STAY -

1.1 Covered Activities -

1.1.a Court denies injunction against actions involving debtors’ affiliates. Shortly after filing their chapter 11 cases, the debtors in possession sought, in the alternative, extension of the automatic stay to the litigation against affiliates or stays of the litigation. The Ninth Circuit has questioned the authority to extend the stay and instead has directed the bankruptcy courts to proceed through the more settled form of a preliminary injunction. A preliminary injunction requires a showing of likelihood of success on the merits, potential for irreparable harm, a balance of equities, and the public interest...