The restructuring industry held its proverbial breath following the Supreme Court’s decision in Harrington v. Purdue Pharma L.P., which invalidated the nonconsensual third-party release in the debtors’ plan. While various...more
As many bankruptcy practitioners are aware, there is a circuit court split with respect to the allowability of non-consensual third-party releases. Notably, in the Purdue Pharma case, the United States Court of Appeals for...more
As discussed in our earlier blog post, In re The Hacienda Company, LLC – a Flicker of Hope for Distressed Cannabis Companies: Bankruptcy May be Available to Liquidate Assets of Non-Operating Cannabis Companies | In Solvency...more
9/27/2023
/ Agribusiness ,
Bankruptcy Code ,
Bankruptcy Court ,
Cannabis-Related Businesses (CRBs) ,
Chapter 11 ,
Controlled Substances Act ,
Creditors ,
Debtors ,
Federal Rules of Civil Procedure ,
Liquidation ,
Marijuana Related Businesses ,
Money Laundering ,
Ownership Interest ,
Restructuring
The Fox Rothschild In Solvency blog previously covered the Supreme Court’s decision in Siegel v. Fitzgerald, 142 S. Ct. 1770 (2022), in which the 2017 amendment to 28 U.S.C. § 1930(a)(6) increasing quarterly fees payable to...more
Until recently, the bankruptcy courts have generally been unavailable for insolvent cannabis companies to liquidate or reorganize. The Office of the United States Trustee (the “UST”) has a mandate from the Department of...more
In a 2021 opinion in In re Paragon Offshore PLC, 629 B.R. 227 (Bankr. D. Del. 2021) (“Paragon Offshore”), Judge Sontchi of the United States Bankruptcy Court for the District of Delaware held that a litigation trust created...more
The Clerk of the Court (“Clerk”) is the “official custodian of the records and dockets of the bankruptcy court,” and when it appears that there will be a distribution to unsecured creditors in a bankruptcy case, the Clerk...more
Section 11 of Official Bankruptcy Form 105, Involuntary Petition Against an Individual, provides:
Allegation-
Each petitioner is eligible to file this petition under 11 U.S.C. § 303(b).
The debtor may be the...more
A Delaware bankruptcy court recently held that the bar date for filing proofs of claim cannot be enforced against a creditor if the notice of the bar date was not sent by mail to that creditor. In re Cyber Litigation Inc.,...more
Among the potential prolonged impacts of the COVID-19 pandemic is the interruption to supply chains throughout several critical industries. As a result, prices have increased as various goods and materials have become...more
The First Circuit was required to decide whether the Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) or the Federal Rules of Civil Procedure (the “Civil Rules”) govern a case that comes within the federal...more
The relationship for which counsel for a committee could be disqualified was addressed in the recent case of Bingham Greenbaum Doll, LLP v. Glenview Health Care Facility, Inc., 620 B.R. 582 (6th Cir. B.A.P. 2020)...more
To give a reorganized debtor a “fresh start,” the Bankruptcy Code provides that the confirmation of a plan discharges the debtor from any debt that arose before the confirmation date. However, if a potential claimant lacks...more
Pursuant to 28 U.S.C. § 1930(a)(6), chapter 11 debtors must pay a quarterly fee to the United States Trustee for deposit in the United States Treasury, until the case is converted or dismissed. The fee is based on a formula...more
When the Bankruptcy Code was first enacted in 1978, student loan debt could be discharged either after the passage of five years since the repayment obligation began, or if repayment would impose an undue hardship on the...more
In a recent Fox Alert, Harriet Wallace examined the new potential for debtors and bankruptcy trustees to apply for Paycheck Protection Program (PPP) loans in connection with operating a debtor’s business in bankruptcy under...more
The following are questions and answers that a distressed company considering insolvency options, including a potential bankruptcy filing, may find useful.
Q: What is the difference between Chapter 11 and Chapter 7...more
9/3/2020
/ Bankruptcy Code ,
Bankruptcy Court ,
Chapter 11 ,
Chapter 7 ,
Commercial Bankruptcy ,
Creditors ,
Debtors ,
Dissolution ,
Refinancing ,
SBA ,
Trustees
As the cannabis industry continues to expand, there will inevitably be businesses within the sector that encounter financial difficulty and may require insolvency assistance to either restructure or...more