News & Analysis as of

Bankruptcy Court Chapter 11

Troutman Pepper Locke

What Is the Life Cycle of a Chapter 11 Bankruptcy Case and Why Do Stakeholders Need to Pay Attention to the Bankruptcy Case? (Part...

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A Chapter 11 bankruptcy is often called “reorganization bankruptcy” and is typically used to preserve and maximize the going concern value of the debtor’s business. The life cycle of a Chapter 11 bankruptcy case can be...more

Offit Kurman

Acquisition Strategies: Navigating Section 363 Sales and the Impact of Undersecured Liens

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Section 363 of the Bankruptcy Code allows a Chapter 11 debtor to sell assets "free and clear" of existing claims, liens, encumbrances, and other liabilities. This provision facilitates expedited sales that might otherwise be...more

Herbert Smith Freehills Kramer

HSF Kramer Bankruptcy & Restructuring Group Global reach, local knowledge

Debtors and creditors have options when choosing where to pursue a restructuring – particularly with operations across jurisdictions and debt instruments issued under different laws. Local knowledge is key to navigate those...more

Patterson Belknap Webb & Tyler LLP

The Divestiture Rule Explained: A Judge-Made Doctrine Doesn’t Necessarily Deprive a Lower Court of Ongoing Subject Matter...

The filing of an appeal in federal court generally divests the lower court of jurisdiction. This rule of appellate jurisdiction applies both to appeals from a district court to a court of appeals and from a bankruptcy court...more

Arnall Golden Gregory LLP

Restructuring Roundup - May 2025

AGG’s Restructuring Roundup newsletter is a monthly update of legal issues and news affecting or related to commercial litigation and bankruptcy. The newsletter is a curation of published articles and news, and contains...more

Jones Day

Business Restructuring Review Vol. 24, No. 3 | May–June 2025

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Bankruptcy trustees and chapter 11 debtors-in-possession (“DIPs”) frequently seek to avoid fraudulent transfers and obligations under section 544(b) of the Bankruptcy Code and state fraudulent transfer or other applicable...more

Jones Day

Disappointed Bidder in Bankruptcy Asset Sales Waived Argument that Buyers Did Not Act in Good Faith by First Raising It on Appeal

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The finality of asset sales in bankruptcy is an indispensable feature of U.S. bankruptcy law designed to maximize the value of a bankruptcy estate as expeditiously as possible for the benefit of all stakeholders. To promote...more

Troutman Pepper Locke

Navigating Jurisdictional Pitfalls: Lessons From Global One Media, Inc. v. Newtek Small Business Finance, LLC on Lien Filing...

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The Ninth Circuit Bankruptcy Appellate panel recently reaffirmed the longstanding principle that a UCC-1 financing statement securing personal property must be filed at the debtor’s location. In a recent case, the lender did...more

DLA Piper

Delaware Bankruptcy Court Clarifies Broad Scope of Fraudulent Transfer Claims

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The US Bankruptcy Court for the District of Delaware recently reaffirmed but limited the holding of In re DSI Renal Holdings, LLC, which held that under Third Circuit law, neither debtors nor trustees could bring fraudulent...more

Jones Day

Delaware Bankruptcy Court: Applying Credit Pressure on Financially Distressed Debtor Scuttles Ordinary Course Payment Preference...

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The power of a bankruptcy trustee or chapter 11 debtor-in-possession ("DIP") to avoid pre-bankruptcy preferential transfers is an important tool designed to promote the bankruptcy policy of equality of distribution and to...more

King & Spalding

Delaware Bankruptcy Court Sides with Trustee in Two Related Orders in $500 Million Fraudulent Transfer Action Arising out of...

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In related orders in an action to recover over $500 million in alleged fraudulent transfers arising out of the bankruptcy of an education technology company, the U.S. Bankruptcy Court for the District of Delaware denied...more

ArentFox Schiff

23andMe and the Role of Privacy in Bankruptcy Law

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There is nothing more inherently unique and personal to an individual than his or her DNA. Unlike many other types of personal information, a person’s DNA is immutable. It can be the key to unlocking extremely sensitive...more

King & Spalding

Trustee’s Suit Seeking Clawback of Bank Fees as Fraudulent Transfers Survives Summary Judgment

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On March 12, 2025, the U.S. Bankruptcy Court for the District of Delaware denied four banks’ motion for summary judgment in an action seeking to claw back $35 million in fees associated with a $1.8 billion loan that allegedly...more

Felicello Law PC

Adversary Proceedings in Bankruptcy: What to Expect and Why They Matter

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You may recall Rudy Giuliani’s recent legal woes. First, he lost a defamation lawsuit and faced a judgment of $148.1 million. Then, after he filed for bankruptcy protection, he faced an adversary proceeding to determine his...more

Falcon Rappaport & Berkman LLP

Understanding the Celsius Settlement Matrix: A Guide for Defendants

The Celsius Network bankruptcy case has been a significant event in the cryptocurrency world, leading to numerous legal battles and adversary proceedings. One of the critical aspects of this case is the recently proposed...more

Seward & Kissel LLP

Watching the Watchers, Celebrity Status, and Harvester of Sorrow

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Weight Watchers files bankruptcy after growth in GLP-1 drugs | Bloomberg via Yahoo! Finance - Having rebranded as WW International in 2018 and acquired Sequence, a telehealth company, in 2023, the 62-year-old health and...more

Proskauer Rose LLP

Slamming the Backdoor on Non-Consensual Third-Party Releases

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Non-Consensual Third-Party Releases are Not Permissible in Section 363 Sales or Rule 9019 Settlements, Regardless of the Suggestions of Some Bankruptcy Courts...more

Gray Reed

Bankruptcy Court Blocks GLO’s State Lease Termination

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In In re Pearl Resources LLC, a Houston bankruptcy court rejected the Texas General Land Office’s attempt to partially terminate state oil and gas leases in Pecos County, despite finding the operator had breached offset well...more

Stark & Stark

Rite-Aid Files a Chapter 22: Second Chapter 11 Bankruptcy Filing in Two Years

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Rite Aid Corporation filed a Chapter 11 bankruptcy petition for the second time in two (2) years in the District of New Jersey Bankruptcy Court, docket #25-14731 (MBK) on May 5, 2025. A repeat filing like this is often...more

Clark Hill PLC

How Bankruptcy Courts Interpret Intercreditor Agreements: The Uncertainty of Judicial Perspective

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Intercreditor Agreements typically are contractual arrangements among lenders of similar or differing priorities to a single borrower secured by the assets of the borrower, often including real estate assets. These multiple...more

Blake, Cassels & Graydon LLP

Un dossier mené à bon port : Cinq points à retenir de la restructuration transfrontalière de Red Lobster

En mai 2024, Red Lobster Management LLC (« RL Management ») et quatorze membres de son groupe, y compris Red Lobster Canada Inc. (« Red Lobster Canada ») (collectivement, « Red Lobster »), ont entamé des procédures devant la...more

Rivkin Radler LLP

2nd Circuit Refuses to Enforce Insurance Policy’s Arbitration Provision

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A Second Circuit U.S. Court of Appeals decision refused an attempt to expand the scope of an insurance policy’s arbitration provision, creating the need for extra caution when interpreting policies. In Ehrenberg v. Allied...more

Troutman Pepper Locke

Should I Remain Employed by the Debtor? What to Know About KEIPs and KERPs - Creditor’s Rights Toolkit

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For a debtor in financial distress, having the right team in place to steward the company through a restructuring can mean the difference between success and failure. To incentivize top talent to stay with the debtor and...more

Constangy, Brooks, Smith & Prophete, LLP

23andWho? The fate of your DNA data after the 23andMe bankruptcy

Consumers have been trading their DNA for a personal genetic history lesson with 23andMe since 2007. The company has since become extremely popular and has collected a trove of genetic information relating to more than 14...more

Cadwalader, Wickersham & Taft LLP

Johnson & Johnson’s “Red River” Bankruptcy Strategy Sinks on Third-Party Release Issues, Voting Irregularities—With Possible...

Introduction - On March 31, 2025, Judge Christopher Lopez of the U.S. Bankruptcy Court for the Southern District of Texas denied confirmation of the prepackaged Chapter 11 plan of Johnson & Johnson (“J&J”) affiliate Red...more

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