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
On March 18, 2025, the United States Court of Appeals for the Fifth Circuit held in In re Highland Capital Mgmt., L.P., that a plan’s gatekeeping and injunction provisions could not extend to claims against most non-debtors...more
3/31/2025
/ Appeals ,
Bankruptcy Code ,
Bankruptcy Court ,
Bankruptcy Plans ,
Chapter 11 ,
Debt Restructuring ,
Debtors ,
Harrington v Purdue Pharma L P ,
Injunctions ,
Liability ,
Non-Debtors ,
Third-Party Release Agrements
Introduction & Key Takeaways - The year 2024 ended with some major legal fireworks, as two important courts issued contrasting New Year’s Eve decisions on the validity of “uptier” liability management transactions that have...more
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
10/1/2024
/ Bankruptcy Code ,
Chapter 11 ,
Financial Institutions ,
Financial Services Industry ,
Financial Transactions ,
Liquidation ,
Parent Corporation ,
Recapitalization ,
Safe Harbors ,
Securities ,
Trustees
On September 10, 2024, the U.S. Court of Appeals for the Third Circuit held in In re The Hertz Corporation that unsecured creditors of a solvent debtor are entitled to receive the contractual rate of interest, rather than...more
In a ruling issued just yesterday, MOAC Mall Holdings LLC v. Transform Holdco LLC et al., 598 U.S. ----, 2023 WL 2992693 (2023) (“MOAC”), the United States Supreme Court (the “Supreme Court”) held that Bankruptcy Code section...more
4/21/2023
/ 363 Sales ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Commercial Bankruptcy ,
Debtors ,
Jurisdiction ,
MOAC Mall Holdings LLC v Transform Holdco LLC ,
Mootness ,
Sale of Assets ,
SCOTUS ,
Sears ,
Section 363
Executive Summary:
On January 30, 2023, the U.S. Court of Appeals for the Third Circuit (the “Court”) issued an opinion in In re LTL Management, LLC, No. 22-2003, 2023 WL 1098189, at *1 (3d Cir. Jan. 30, 2023) (“LTL...more
2/10/2023
/ Bankruptcy Court ,
Chapter 11 ,
Commercial Bankruptcy ,
Corporate Liability ,
Debt ,
Financial Distress ,
Good Faith ,
Johnson & Johnson ,
Mass Tort Litigation ,
Pharmaceutical Industry ,
Popular
On August 11, 2020, the United States Court of Appeals for the Second Circuit affirmed lower court decisions rejecting Lehman Brothers Special Financing Inc.’s (“LBSF”) attempt to recover nearly $1 billion in payments to...more
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
9/11/2019
/ Adversary Proceedings ,
Appeals ,
Backstop Agreements ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Coal Industry ,
Commercial Bankruptcy ,
Debt Restructuring ,
Debtors ,
Energy Sector ,
Equitable Mootness ,
Good Faith ,
Judgment on the Merits ,
Offerings ,
Peabody Energy ,
Preferred Shares ,
Private Placements ,
Pro Rata Allocation Rule ,
Reorganizations ,
Sales of Securities ,
Secured Debt ,
Securities Regulation ,
Unsecured Debt
On May 4, 2015, a unanimous United States Supreme Court in Bullard v. Blue Hills, 135 S. Ct. 1686 (2015), resolved a long-standing circuit court split by holding that a bankruptcy court’s order denying confirmation of a...more
Shortly after the U.S. Court of Appeals for the Fifth Circuit refused to enforce Vitro SAB’s Mexican plan of reorganization in the United States (covered here), Judge Harlin D. Hale of the U.S. Bankruptcy Court for the...more