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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

Subchapter V—Fourth Circuit Rules Not a Panacea for the Dishonest Debtor

In 2019, Congress enacted the Small Business Reorganization Act. This legislation created a new type of Chapter 11 reorganization under which certain businesses with total debts less than a certain threshold (currently $7.5...more

Supreme Court to Decide Constitutionality of U.S. Trustee Fees in Chapter 11 Cases

The Supreme Court of the United States granted certiorari on Jan. 10, 2022 in a case arising out of the Circuit City bankruptcy regarding certain additional fees imposed on large Chapter 11 debtors. Most Chapter 11 debtors...more

Venue Provisions Fail to Provide Relief in Smaller Dollar Preference Cases

Almost two years ago, the Small Business Reorganization Act of 2019 (SBRA) was enacted. While the provisions regarding the new Subchapter V reorganization received the most press (streamlined chapter 11 for businesses with...more

Riding Through International Waters: Assumption and Assignment of Executory Contracts in a Chapter 15 Section 363 Sale

Section 365 of the Bankruptcy Code provides a mechanism for the assumption and assignment or rejection of executory contracts. However, sometimes a contract is overlooked and is not affirmatively assumed or rejected in a...more

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