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Chapter 7 Substantive Consolidation

Jones Day

Business Restructuring Review November–December 2023 | Vol. 22 No. 6

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Health Care Provider Bankruptcy Update: Patient Care Ombudsman Not Necessary In Every Health Care Business Bankruptcy Case - Recent headlines have starkly illuminated the headwinds facing health care providers struggling...more

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Florida Bankruptcy Court Substantively Consolidates Debtor and Non-Debtor Entities

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The Bankruptcy Code does not explicitly authorize the equitable remedy of "substantive consolidation"—i.e., treating the assets and liabilities of two or more related entities as if they belonged to a single, consolidated...more

Nelson Mullins Riley & Scarborough LLP

Ninth Circuit: No Consolidation Absent Notice to Creditors of Non-Debtors

In In re Mihranian, 2019 WL 4252115 (9th Cir. 2019), the Ninth Circuit Court of Appeals held, as a matter of first impression, that a party moving for substantive consolidation of the debtor's bankruptcy estate with the...more

Jones Day

Ninth Circuit: Federal Law Governs Substantive Consolidation, and Supreme Court’s Siegel Ruling Does Not Bar Consolidation of...

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In Clark’s Crystal Springs Ranch, LLC v. Gugino (In re Clark), 692 Fed. Appx. 946, 2017 BL 240043 (9th Cir. July 12, 2017), the U.S. Court of Appeals for the Ninth Circuit ruled that: (i) the remedy of "substantive...more

Dechert LLP

Substantive Consolidation of Non-Debtors-Standing and Notice Issues

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U.S. courts generally agree that the substantive consolidation should be applied sparingly, and even more so when substantive consolidation of debtors with non-debtors is sought. While many opinions address the grounds for...more

Mintz - Bankruptcy & Restructuring Viewpoints

Massachusetts Bankruptcy Court Sends a Reminder on Avoiding the Substantive Consolidation Trap

There are numerous reasons why a company might use more than one entity for its operations or organization: to silo liabilities, for tax advantages, to accommodate a lender, or for general organizational purposes. Simply...more

Dechert LLP

Substantive Consolidation: It’s Alive and Well (or Maybe Just Alive)

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The doctrine of substantive consolidation (generally- the power of a bankruptcy court to consolidate the assets and liabilities of affiliated entities in bankruptcy) is a recognized remedy exercised by bankruptcy courts – one...more

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