News & Analysis as of

Debtors Chapter 11 Bankruptcy Plans

Nelson Mullins Riley & Scarborough LLP

Purdue Pharma Plan Blocked, Supreme Court Bars Third-Party Releases in Bankruptcy

A sharply divided U.S. Supreme Court has barred the issuance of non-consensual third-party releases in Chapter 11 Plans. In a 5-4 decision, the court held that “the bankruptcy code does not authorize a release and injunction...more

Miller Canfield

In Purdue Pharma, Supreme Court Rules That Nonconsensual Releases Are A Nonstarter

Miller Canfield on

On June 27, 2024, the United States Supreme Court issued its long-awaited opinion in Harrington v. Purdue Pharma L.P., holding that the Bankruptcy Code does not permit nonconsensual releases of nondebtors. As a...more

Foley Hoag LLP

Bankruptcy Appellate Panel Blocks Cannabis Employee’s Chapter 13 Relief but Rejects Bright-Line Bar of Eligibility to be a Debtor...

Foley Hoag LLP on

In a March 2024 decision, the U.S. Bankruptcy Appellate Panel for the First Circuit (the “Panel”) followed existing case law prohibiting debtors in businesses related to cannabis from availing themselves of federal bankruptcy...more

Troutman Pepper

Can I Net Amounts Owed to the Debtor Against Amounts Owed to Me? - Creditor’s Rights Toolkit

Troutman Pepper on

There are two similar but distinct mechanisms through which a creditor might net amounts owed to the debtor against amounts owed by the debtor — setoff and recoupment. Understanding the distinction between them, and how...more

Goodwin

Till We Meet Again: Eighth Circuit Weighs in on Appropriate Interest Rate in a Cramdown

Goodwin on

Much has been written about how to calculate the appropriate interest rate for the deferred cash payments a debtor may propose to pay to a rejecting secured creditor under a “cramdown” Chapter 11 plan to meet the “fair and...more

Nelson Mullins Riley & Scarborough LLP

Bankruptcy 101: Bankruptcy Cases, Adversary Proceedings, and Contested Matters - Bankruptcy Basics for New and Non-Bankruptcy...

This entry is part of Nelson Mullins’s ongoing “Bankruptcy Basics” blog series that is intended to address foundational aspects of bankruptcy for new and non-bankruptcy practitioners and professionals. This entry will discuss...more

Miller Canfield

What Do You Do If a Debtor Defaults on Its Confirmed Bankruptcy Plan?

Miller Canfield on

A recent opinion from the Michigan Court of Appeals explained that when a debtor defaults under a confirmed chapter 11 bankruptcy plan, a creditor can enforce its rights in state court, and perhaps also in the bankruptcy...more

Vinson & Elkins LLP

District Court in Virginia Continues Questioning of Third-Party Releases – At Least in the Absence of Detailed Findings of...

Vinson & Elkins LLP on

Judge Colleen McMahon recently opined in Purdue1 that “the lower courts desperately need a clear answer” as to the validity of third-party releases. On January 13, 2022, the United States District Court for the Eastern...more

Dorsey & Whitney LLP

Dorsey U.S. Bankruptcy Law Q&A Series Six (Chinese Version)

Dorsey & Whitney LLP on

We hope that you found the five previous Q&A series regarding what to do when a U.S. customer files for Chapter 11 bankruptcy protection helpful. This Series Six will address questions relating to the plan process, including...more

Dorsey & Whitney LLP

Dorsey U.S. Bankruptcy Law Q&A Series Six

Dorsey & Whitney LLP on

We hope that you found the five previous Q&A series regarding what to do when a U.S. customer files for Chapter 11 bankruptcy protection helpful. This Series Six will address questions relating to the plan process, including...more

Partridge Snow & Hahn LLP

Lenders Take Notice - A New Bankruptcy Subchapter Goes Into Effect February 19, 2020 - Increased Filings Expected

The Small Business Reorganization Act (SBRA) goes into effect on February 19, 2020. The SBRA creates a new Subchapter V to Chapter 11, expanding access to bankruptcy relief for small businesses. With a debt ceiling of...more

Carlton Fields

Big Changes for Small Business Bankruptcies

Carlton Fields on

The Small Business Reorganization Act of 2019 (SBRA) was signed into law in August 2019 and will go into effect on February 19, 2020. The goal of the SBRA is to make small business bankruptcies faster and less expensive....more

Patterson Belknap Webb & Tyler LLP

Small Business Reorganization Act of 2019

In the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (“2005 Act”), Congress amended the Bankruptcy Code and Title 28 of the U.S. Code to provide special rules and procedures for “small business debtors.” The...more

Pillsbury Winthrop Shaw Pittman LLP

Nonconsensual Third-Party Release Limits: Substantial Financial Contribution Won’t Buy Non-Debtors a Release From Claims That...

Reorganization plans providing for non-debtor releases (i.e., releasing non-debtors from claims by creditors of the debtor) have been regularly challenged in recent years, frequently by the United States Trustee and other...more

Snell & Wilmer

Is a Bankruptcy Plan that Violates Federal Criminal Law Proposed in Bad Faith?

Snell & Wilmer on

Although legal in many states, marijuana remains illegal under federal criminal law. See 21 U.S.C. § 856(a)(1). One would think that engaging in illegal activity under federal criminal law would preclude relief under federal...more

Ward and Smith, P.A.

Individual Chapter 11 Plans Also Are Just About Written in Stone

Ward and Smith, P.A. on

In an article last year, we informed you about a ruling from the United States Bankruptcy Court for the Eastern District of North Carolina, in In re Royal, holding that debtors seeking modification of a confirmed Chapter 13...more

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