Section 510(b) of the Bankruptcy Code provides a mechanism designed to preserve the creditor/shareholder risk allocation paradigm by categorically subordinating claims asserted against a debtor by equity holders arising from...more
MODIFICATION OF SECURED LOAN UNDER CRAMDOWN CHAPTER 11 PLAN WARRANTED DUE TO PLAN FEASIBILITY THREAT -
Many recent court rulings concerning the treatment of secured creditors under a chapter 11 plan have focused on...more
3/31/2022
/ Absolute Priority Rule ,
Bankruptcy Code ,
Bankruptcy Court ,
Certiorari ,
Chapter 11 ,
Chapter 15 ,
Commercial Bankruptcy ,
Cramdown ,
Denial of Certiorari ,
Foreign Bankruptcies ,
Hertz ,
Make-Whole Premium ,
Reorganizations ,
SCOTUS
When existing interest holders attempt to retain ownership of a chapter 11 debtor after confirmation of a nonconsensual plan of reorganization, the Bankruptcy Code's plan confirmation requirements, including well-established...more
In Czyzewski v. Jevic Holding Corp., 137 S. Ct. 973 (2017), the U.S. Supreme Court held that the Bankruptcy Code does not allow bankruptcy courts to approve distributions to creditors in a "structured dismissal" of a chapter...more
Postpetition financing provided by pre-bankruptcy shareholders or other "insiders" is not uncommon in chapter 11 cases as a way to fund a plan of reorganization and allow old shareholders to retain an ownership interest in...more
The next few years are expected to see a significant increase in the volume of bankruptcy cases filed by health care providers. Thus far in 2017, the number of bankruptcies in health care-related sectors, including hospitals,...more
10/3/2017
/ Absolute Priority Rule ,
Affordable Care Act ,
Automatic Stay ,
Bundled Services ,
Chapter 11 ,
Chapter 7 ,
Chapter 9 ,
Commercial Bankruptcy ,
Debtors ,
Fee-for-Service ,
Fiduciary Duty ,
Health Care Providers ,
Healthcare Costs ,
Lenders ,
Medicaid ,
Medical Records ,
Medicare ,
Medicare Provider Agreements ,
Shareholders ,
Trustees
Section 510(b) of the Bankruptcy Code provides a mechanism designed to preserve the creditor/shareholder risk allocation paradigm by categorically subordinating most types of claims asserted against a debtor by equityholders...more
8/15/2017
/ Absolute Priority Rule ,
Bankruptcy Code ,
Commercial Bankruptcy ,
Creditors ,
Debt Restructuring ,
Employee Stock Purchase Plans ,
Equitable Relief ,
Lehman Brothers ,
Lien Priority ,
Qualified Restricted Stock Units (RSUs) ,
Recharacterization ,
Restricted Stocks ,
Risk Allocation ,
Section 502 ,
Section 510 ,
Shareholders ,
Subordination Agreement
The U.S. Supreme Court ruled on March 22, 2017, in Czyzewski v. Jevic Holding Corp., that without the consent of affected creditors, bankruptcy courts may not approve "structured dismissals" providing for distributions that...more
3/27/2017
/ Absolute Priority Rule ,
Appeals ,
Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Commercial Bankruptcy ,
Consent ,
Czyzewski v Jevic Holding Corp ,
Priority Debt ,
Reversal ,
SCOTUS ,
Structured Dismissals ,
WARN Act