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Fifth Circuit Affirms Approval of Bid Protections for Debtor’s Prior Lender Over Unsecured Creditors’ Objection

On July 25, 2023, the U.S. Court of Appeals for the Fifth Circuit affirmed a bankruptcy court’s approval of a break-up fee and expense reimbursement owed to a debtor’s prior lender, after the lender was not the winning bidder...more

Texas Bankruptcy Court Awards Majority Stake in Reorganized Debtor to Unsecured Creditors After Avoiding the Value of the...

On August 3, 2023, the U.S. Bankruptcy Court for the Southern District of Texas found that the majority of the shares of stock of a reorganized debtor should be allocated to unsecured creditors, and not the secured creditors,...more

Texas Bankruptcy Court Rejects Rejects Use of Ponzi-Scheme Presumption in “Ponzi-Like” Fraud Case

On June 3, 2022, the U.S. Bankruptcy Court for the Northern District of Texas refused to extend the “ponzi-scheme presumption” in connection with an actual intent fraudulent transfer claim because there was no actual ponzi...more

New York Bankruptcy Court Finds That Aircraft Leases' Liquidated Damages Clauses and Guarantees Are Unenforceable

On February 14, 2019, Judge Lane of the Bankruptcy Court for the SDNY issued an opinion in Republic Airways Holdings Inc. addressing whether the liquidated damages provisions in certain aircraft “true leases” under Article 2A...more

Supreme Court Asked to Resolve Circuit Split On Whether Licensee Trademark Rights Survive Rejection in Bankruptcy

On June 11, 2018, Mission Product Holdings, Inc. (“MPHI”), a developer of chemical free cooling fabrics, petitioned the U.S. Supreme Court for a writ of certiorari to resolve a circuit split on whether a licensee’s right to...more

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