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Bankruptcy Code

DLA Piper

US Bankruptcy Court Establishes Guidelines for “New Value” Plans of Reorganization in Competing Plan Scenarios

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Introduction - On October 25, 2024, Judge John P. Mastando III of the US Bankruptcy Court for the Southern District of New York issued a ruling in Eletson Holdings Inc., Case No. 23-10322, pursuant to which he (a) denied...more

Hendershot Cowart P.C.

Executory Contracts and Contract Rejection: What Non-Debtors Need to Know About Bankruptcy

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Bankruptcy debtors have special rights in contracts or leases where both parties have outstanding obligations, known in legal terms as “executory contracts” or “unexpired leases”. If you are doing business with a company that...more

Lathrop GPM

California Bankruptcy Court Rules that Section 364(c)(1) of the Bankruptcy Code Allows Popeyes Louisiana Kitchen to Block Chapter...

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A bankruptcy court in California denied Pinnacle Foods of California, LLC’s motion to assume six separate franchise agreements with franchisor Popeyes Louisiana Kitchen, Inc. In re Pinnacle Foods of California LLC, 2024 WL...more

International Lawyers Network

Bankruptcy Proceedings in the United States (Updated)

Bankruptcy Proceedings in the United States - General Overview of the Primary Protection Granted to a Debtor Under the United States Bankruptcy Code - The United States Bankruptcy Code, through its various chapters,...more

White and Williams LLP

A Funny Thing Happened to My Ground Lease in Bankruptcy Court

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Ground leases are an important – if somewhat unusual – part of the real estate finance industry. Because they typically cover large expensive properties like Rockefeller Center and The Empire State Building, to name two, and...more

Troutman Pepper

Can I Be Held Liable as a Petitioning Creditor When an Involuntary Bankruptcy Is Dismissed? - Creditor’s Rights Toolkit

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An involuntary bankruptcy can be a powerful tool in a creditor’s arsenal. Involuntary bankruptcies are rarely filed, however, because of the significant risk of liability for the petitioning creditor if the case is dismissed....more

Patterson Belknap Webb & Tyler LLP

The Ponzi Scheme Presumption in Avoidance Action Litigation

Section 548 of the bankruptcy code authorizes a trustee, debtor, or other appropriate party to avoid actual and constructive fraudulent transfers that occurred prepetition. In order to prove that a transfer was an actual...more

Proskauer Rose LLP

From Opioids to Opt-Outs: Nonconsensual Third-Party Releases and the Aftermath of Purdue

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On June 27, 2024, the U.S. Supreme Court released its 5-4 opinion in connection with the bankruptcy case of Purdue Pharma L.P. (“Purdue”). Over a vigorous dissent authored by Justice Kavanaugh, a narrow majority of the...more

Hinshaw & Culbertson - Insights for Insurers

How the U.S. Supreme Court's Rulings on Kaiser and Purdue Pharma Affect Insurers' Rights and Interests in Chapter 11 Cases

On June 6, 2024, the United States Supreme Court issued its decision on an insurer’s standing in its policyholders’ Chapter 11 bankruptcy proceeding in Truck Exchange v. Kaiser Gypsum Co., 144 S. Ct. 1414 (2024). The decision...more

Pillsbury Winthrop Shaw Pittman LLP

U.S. Bankruptcy Court Holds that State-Court Receivership Order Does Not Bar Managing Member from Seeking LLC Bankruptcy Relief

A typical receivership order does not limit the ability of a managing member to seek limited liability company bankruptcy relief for distressed real estate or other enterprises. An enterprise, even if in receivership,...more

Mayer Brown

Third Circuit Orders Hertz to Pay Noteholders Post-petition Interest, including Make-Whole Premiums, at Contract Rates

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The US Court of Appeals for the Third Circuit recently held that Hertz’s noteholders are entitled to post-petition interest payments, including make-whole premiums, at the contract rate as part of the company’s Chapter 11...more

International Lawyers Network

Bankruptcy, Insolvency & Rehabilitation Proceedings in India (Updated)

KEY FACTS OF BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS UNDER INDIAN LAW - The Code: Introduction of a comprehensive insolvency and bankruptcy law in India is a recent event, with introduction of the...more

Morgan Lewis

The Evolving Landscape of Third-Party Releases Post-Purdue

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The Delaware Bankruptcy Court on September 25 issued a ruling in Smallhold that a creditor cannot be presumed to consent to a third-party release in a bankruptcy plan without clear, affirmative consent. This decision rules on...more

Proskauer Rose LLP

What Being An 'Insider' Means In Ch. 11, And Why It Matters

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After nearly a decade of historically low interest rates, many borrowers will now have to grapple with near-term maturities between 2025 and 2028 on approximately $4.9 trillion of corporate debt. While some borrowers may...more

Pillsbury Winthrop Shaw Pittman LLP

Lenders Beware: The Ponzi Scheme Presumption Can Trap an Unwitting Lender

A recent Ninth Circuit Court decision highlights a risk for lenders caught up in a Ponzi scheme. In its recent EPD Investment decision, the Ninth Circuit reaffirmed that (as a matter of law) upon finding the existence of a...more

Patterson Belknap Webb & Tyler LLP

Court Rules Mere Conduit Defense Not Suitable for a Motion to Dismiss

At the motion to dismiss stage, courts usually won’t consider affirmative defenses. This issue arose recently in a preferential transfer case, where a defendant sought to dismiss a complaint by arguing it was a mere conduit,...more

Falcon Rappaport & Berkman LLP

Michigan Bankruptcy Court Holds That a Non-Compete Clause Survives the Rejection of an Executory Contract and That a...

In a recent decision of interest, the Bankruptcy Court for the Eastern District of Michigan held that a non-compete clause within a franchise agreement as well as confidentiality agreement could not be rejected as an...more

WilmerHale

Trending: Special Deference for Foreign Insolvency Proceedings Both In and Out of Chapter 15

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Several cases this year have demonstrated the continuing trend of U.S. courts’ respect toward foreign insolvency proceedings. Recent decisions from the Third and Eleventh Circuits, Southern District of New York and other...more

Troutman Pepper

Where the F(BO) is the Money? Part 2 — Adopting the Right Lessons from Synapse

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This is the second of three articles focused on a key question: as bank-fintech partnerships continue to play a vital role in driving financial services, how does the industry make this system safer and better?...more

Troutman Pepper

Taking Stock of Liens While There Is Still Time – Do You Really Have the Collateral? - Creditor’s Rights Toolkit

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Trade creditors are usually grouped with “general unsecured creditors” in bankruptcy, but some have liens that can elevate their claim priority. To achieve this, the lien must be properly granted and perfected under...more

DLA Piper

Second Circuit Rules Bankruptcy Code’s “Safe Harbor” Provision Preempts State Law Fraudulent Transfer Claims

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On September 19, 2024, the US Court of Appeals for the Second Circuit issued a summary order in which it held that the “safe harbor” provision of Section 546(e) of the Bankruptcy Code preempted a bankruptcy trustee’s state...more

Pillsbury Winthrop Shaw Pittman LLP

No Comity Tonight

U.S. Bankruptcy Court does not enforce an asset freeze order from a Brazilian insolvency proceeding recognized under chapter 15 of the Bankruptcy Code. Recognition of a foreign proceeding under chapter 15 of the Bankruptcy...more

Patterson Belknap Webb & Tyler LLP

Ninth Circuit Addresses State Sovereign Immunity for Claims Based on Dismissed Involuntary Petitions

When an involuntary bankruptcy petition is dismissed, section 303(i) of the Bankruptcy Code permits a debtor to seek reasonable attorneys’ fees and costs from the petitioners, and, if the petition was filed in bad faith,...more

Cadwalader, Wickersham & Taft LLP

“Recapping” and Reconciling Merit Management and Nine West, the Second Circuit Holds That Boston Generating’s 2006...

Until recently, two of the most important cases interpreting the Bankruptcy Code’s “safe harbor” provisions appeared to be in potential tension. First, in the U.S. Supreme Court’s 2018 Merit Management decision, the Supreme...more

Proskauer Rose LLP

Private Credit Restructuring — Are You an “Insider” and Why Does it Matter?

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Navigating a successful restructuring requires skill and experience to look around corners, anticipate issues, and take proactive steps to minimize risk and uncertainty.  In this alert we highlight one of those risks —...more

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