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Snell & Wilmer

SCOTUS Decides Against Sacklers’ Release in Purdue Pharma

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On June 27, 2024, the U.S. Supreme Court issued its much-anticipated decision in Harrington v. Purdue Pharma L.P. The issue before the Court was whether the Bankruptcy Code permits nondebtors to obtain a release of...more

Parker Poe Adams & Bernstein LLP

Admission That Business Unit Was Closed Due to Employee's Disability Precludes Dismissal of ADA Claim

When advising employers about the legal risks associated with a business reorganization, we generally advise that discrimination claims are less likely when a company closes an entire facility or department as compared to...more

Hinshaw & Culbertson - Insights for Insurers

Two Cases Directly Impacting Insurers are Currently Pending Before the United States Supreme Court

Rulings by the United States Supreme Court profoundly impact insurers as businesses and corporate citizens. Additionally, decisions from the U.S. Supreme Court can also influence claims and policyholders' liabilities for...more

Nelson Mullins Riley & Scarborough LLP

Buyer Beware: The Risk of Ignoring Known Defects in Title Cannot be Cured by “Free and Clear” Bankruptcy Sale

Envision a scenario in which you purchased a right of first refusal for a parcel of real estate. That right, as bargained for, would let you purchase the parcel if it was put up for sale by matching any competing bidder’s...more

Dechert LLP

Subordination Agreement Ignored in a Cramdown — But What’s So Unfair About That?

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Recently, in In re Tribune Company, the Third Circuit affirmed that the Bankruptcy Code means exactly what it says and that the enforcement of subordination agreements can be abridged when cramming down confirmation of a...more

Kramer Levin Naftalis & Frankel LLP

Tenth Circuit Holds the Doctrine of Equitable Mootness Applies to Liquidating Plans

In Drivetrain LLC v. Kozel (In re Abengoa Bioenergy Biomass of Kansas LLC), 18-3120 (10th Cir. May 5, 2020), the Tenth Circuit held that the doctrine of equitable mootness applies to appeals of confirmed Chapter 11 plans of...more

White & Case LLP

Ahead of the pack: US M&A 2019: Key dealmaking decisions from Delaware and New York

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We focus on two H2 2019 rulings that could affect M&A transactions in the future. Genuine Parts: Acceptance of termination fee does not prevent further remedies - In September 2019, the Delaware Chancery Court refused to...more

Patterson Belknap Webb & Tyler LLP

A Stern Rebuke: Bankruptcy Courts have Constitutional Authority to Confirm Plans Containing Nonconsensual Third-Party Releases

On December 19, the Court of Appeals for the Third Circuit became the first federal circuit court of appeals to hold that a bankruptcy court may confirm a plan containing nonconsensual third-party releases without exceeding...more

Cadwalader, Wickersham & Taft LLP

The Same, Only Better: Eighth Circuit Affirms Peabody Chapter 11 Plan Backstopped Rights Offering Despite Alleged Disparate...

On August 9, 2019, in a unanimous decision (written by a former bankruptcy judge), the Eighth Circuit Court of Appeals affirmed the confirmation of the Peabody Energy Chapter 11 plan (“Plan”) with a prominent backstopped...more

Snell & Wilmer

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

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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

Davis Wright Tremaine LLP

Decision of the Ninth Circuit Court of Appeals in Garvin v. Cook Investments NW, Case No. 18-35119 (9th Cir. May 2, 2019)

In an earlier update, we told you about an appeal pending in the U.S. Court of Appeals for the Ninth Circuit that would decide whether a landlord receiving rent from someone involved in the state-legal cannabis industry could...more

Kramer Levin Naftalis & Frankel LLP

Fifth Circuit Analyzes Creditor’s Impairment, Entitlements to Contractual Make-Whole and Post-Petition Interest Under...

A three-judge panel for the Fifth Circuit Court of Appeals recently held, in the Chapter 11 case In re Ultra Petroleum Corp., No. 17-20793 (5th Cir. Jan. 17, 2019), that (i) a creditor is not “impaired” by a reorganization...more

Dechert LLP

Global Private Equity Newsletter - Winter 2019 Edition: Recent Developments in Acquisition Finance: Ninth Circuit Rejects Broad...

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Those seeking to purchase assets or a business out of a Chapter 11 case employing a “loan to own” strategy may well have received a boost from a recent decision of the U.S. Court of Appeals for the Ninth Circuit....more

Skadden, Arps, Slate, Meagher & Flom LLP

Skadden's 2019 Insights: Second Circuit Adopts Secured Creditor Cramdown Standard Based on Market Efficiency

In 2017, the U.S. Court of Appeals for the Second Circuit held in In re MPM Silicones, LLC that the appropriate interest rate for replacement notes issued to secured creditors under a “cramdown” Chapter 11 plan must be a...more

A&O Shearman

A Moot Point: Court Of Appeals For The Eleventh Circuit Holds That The Doctrine Of Equitable Mootness Is Applicable In A Chapter 9...

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The consummation of a plan of reorganization typically involves a series of complex actions by the debtor and its stakeholders (for example, existing debt and equity are extinguished and new debt and equity issued in their...more

Orrick, Herrington & Sutcliffe LLP

Ninth Circuit Holds Protecting A Claim To Its Fullest Extent Is Not Evidence Of Bad Faith

The Ninth Circuit Court of Appeals recently held that a secured creditor’s purchase of general unsecured claims to block confirmation of a Chapter 11 plan did not in itself constitute bad faith....more

Dechert LLP

Raising the Bar for Bad Faith, the Ninth Circuit Reverses Votes Designation

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The Ninth Circuit reversed and remanded an Oregon bankruptcy court’s order designating recently acquired claims of a secured creditor for bad faith, holding that a bad faith finding requires “something more.” Specifically,...more

A&O Shearman

Ya Gotta Have [Good] Faith: Court of Appeals for the Ninth Circuit Holds That in the Context of Plan Voting, a Bad Faith Showing...

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When it comes to voting on a plan, Section 1126(e) of the Bankruptcy Code provides that a bankruptcy court may designate (or disallow) the votes of any entity whose vote to accept or reject was not made in “good faith” (a...more

Proskauer - Proskauer For Good

New Coalition Pressing for Court Reform in New York State

The Fund For Modern Courts and Proskauer hosted representatives from a diverse coalition of organizations in New York State and leaders of the state bar at our New York office on May 3 to discuss the necessity of court reform...more

Patterson Belknap Webb & Tyler LLP

One and Done. Cramdown Requirement for an Impaired Assenting Class Applies on a Per-Plan, Not a Per-Debtor, Basis.

Confirmation of a Chapter 11 plan of reorganization generally requires the consent of each impaired class of creditors. But, upon satisfaction of additional statutory requirements, a plan proponent can obtain confirmation of...more

Dechert LLP

The Enforceability of Ipso Facto Provisions in a Dismissed Chapter 11 Case

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Section 365 of the U.S. Bankruptcy Code does not address the legal status of an executory contract that is not assumed or rejected in a chapter 11 proceeding. In such cases where a chapter 11 plan is confirmed, courts adopt...more

Skadden, Arps, Slate, Meagher & Flom LLP

Equitable Mootness Doctrine Persists in Bankruptcy Appeals

In recent years, courts have become increasingly critical of the doctrine of equitable mootness, a judicially created abstention doctrine that allows appellate courts to dismiss appeals from a bankruptcy court’s confirmation...more

Zuckerman Spaeder LLP

Fifth Circuit Derails Reverse Discrimination Claims Against Amtrak

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White male discontent has been a major media talking point since the presidential election, and even long before. This talking point has made its way into the workplace, where tech firms are now being targeted for allegedly...more

Foley & Lardner LLP

Sixth Circuit Court of Appeals Holds Properly Perfected Assignment of Rents Not Property of Bankruptcy Estate

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In a significant ruling impacting commercial real estate lenders in Michigan, the 6th Circuit Court of Appeals has ruled that an absolute assignment of rents that had been fully perfected (by demanding payment from tenants to...more

Butler Snow LLP

Curing Default in Chapter 11 Bankruptcy May Require Debtors to Pay Default Interest to Secured Creditors.

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The Ninth Circuit Court of Appeals recently took up the issue of a Chapter 11 Debtor’s requirements to cure a loan default through its Chapter 11 plan. The result was a ruling that overturned previous law that entitled...more

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