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Did the Third Circuit Just Create a Backdoor Around Purdue? A Closer Look at the Boy Scouts Ruling and Section 363(m)

On May 13, 2025, the Third Circuit issued a high-stakes opinion in In re Boy Scouts of America, affirming the confirmation of a Chapter 11 plan that includes nonconsensual, nondebtor third-party releases—despite the U.S....more

Involuntary Bankruptcy: Often Discussed, Infrequently Used

I am commonly asked by clients and other lawyers who are frustrated by typical collection efforts if we can place the would-be debtor into an involuntary bankruptcy.  The short answer is, yes, it is often possible to place a...more

Purdue Does Not Bar Injunctions in Section 363 Sales, Says Recent Bankruptcy Decision

On January 24, 2025, the United States Bankruptcy Court for the Eastern District of Virginia entered an opinion denying a motion for a stay pending an appeal of a settlement motion in In re Hopeman Bros., Inc., No....more

Delaware Bankruptcy Court Holds No General Exception to an Automatic Stay of Case After Denial of Arbitration in Bankruptcy Cases

A December 13, 2024, opinion from Judge Walrath held that a 2023 decision from the U.S. Supreme Court in Coinbase, Inc. v. Bielski, 599 U.S. 736 (2023) requires staying prosecution of an adversary proceeding when the...more

ABI’s Subchapter V Task Force Releases Final Report on Subchapter V Recommendations

Congress enacted the Small Business Reorganization Act of 2019 (“SBRA”) on August 23, 2019, to facilitate the reorganization of smaller business debtors in the United States. The SBRA, codified as Subchapter V of Chapter 11...more

The Fifth Circuit Joins the Eighth and Ninth Circuits in Holding that Avoidance Actions are Estate Property that may be Sold...

In an opinion on January 22nd, the Fifth Circuit Court of Appeals, in Matter of S. Coast Supply Co., 91 F.4th 376 (5th Cir. 2024), held that preference claims arising under 11 U.S.C. § 547 may be sold, reversing the dismissal...more

Will the Supreme Court Grant Cert to Address the Issue of the Appropriate Post-Siegel Remedy? Unlikely.

In earlier posts, the Red Zone has discussed the Supreme Court’s ruling in Siegel v. Fitzgerald, 142 S. Ct. 1770 (2022), which held that increased U.S. Trustee quarterly fees for large Chapter 11 debtors between 2018 and 2020...more

Another Post-Siegel Ruling: Bankruptcy Court for the Eastern District of Virginia Joins Second and Tenth Circuits in Ordering...

Back in June of 2022 we discussed the Tenth Circuit’s post-Sigel decision in John Q. Hammons Fall 2006 LLC v. U.S. Trustee (In re John Q. Hammons Fall 2006 LLC), 15 F.4th 1011 (10th Cir. Oct. 5, 2021), which held that the...more

Post Siegel Ruling: Second Circuit Joins the Tenth Circuit in Ordering Refunds for Overpayment of U.S. Trustee Fees

In a previous blog post from June 2022, we discussed the Tenth Circuit’s post-Sigel decision in John Q. Hammons Fall 2006 LLC v. U.S. Trustee (In re John Q. Hammons Fall 2006 LLC), 15 F.4th 1011 (10th Cir. Oct. 5, 2021),...more

Are Unsecured Creditors of a Solvent Debtor Entitled to Post-Petition Interest at the Contract Rate? Recent Circuit Court of...

Two recent decisions from circuit courts of appeal – the Fifth and Ninth – have addressed a question that does not arise often: in a solvent-debtor chapter 11 case, is the debtor required to pay post-petition interest...more

Post Siegel Ruling: Tenth Circuit Orders Refunds for Overpayment of U.S. Trustee Fees

On June 6, 2022, the Supreme Court issued a unanimously ruling in Siegel v. Fitzgerald, 142 S. Ct. 1770 (U.S. June 6, 2022) that the increase in fees payable to the U.S. Trustee system in 2018 violated the uniformity aspect...more

11th Circuit Approves of Third-Party Releases Despite Debtor’s Failure to Comply with Strict Notice Requirements of Bankruptcy...

Overview - Although a discharge might not release third parties and protects only the debtor against a determination of personal liability, in In re Le Ctr. on Fourth, LLC, 17 F.4th 1326 (11th Cir. 2021), the Eleventh...more

Eleventh Circuit Announces Differing Standards for Approval of Third Party Releases

The Eleventh Circuit Court of Appeals recently issued an opinion in In re Centro Group, LLC, No. 21-11364, 2021 WL 5158001 (11th Cir. Nov. 5, 2021), in which it clarified the two separate and distinct standards for approving...more

U.S. Supreme Court Seems Poised to Address Constitutionality of 2018 U.S. Trustee Fee Increase

Back in July, Craig Eller wrote in The Bankruptcy Protector about the continuing confusion amongst courts and litigants regarding the applicability of a 2018 increase in fees payable to the Office of the United States Trustee...more

10/12/2021  /  Chapter 11 , Debtors , Fees , Trustees

CARES Act Makes Small Business Bankruptcy More Accessible

Companies with Debt Up to $7,500,000 Now Eligible for Relief - The primary purpose of the new CARES Act is to provide emergency financial and health care assistance to individuals, families, and businesses that are...more

Third Circuit’s EFH Decision Is Another Blow to Senior Secured Creditors Attempting to Enforce Subordination Agreements

Earlier this year, the United States Bankruptcy Court for the Southern District of New York issued an opinion in BOKF NA v. Wilmington Sav. Fund Soc’y FSB (In re MPM Silicones LLC), Case No. 15-2280, 2019 WL 121003 (S.D.N.Y....more

Applying Jevic (Part 2): How Courts Are Interpreting and Applying the Supreme Court’s Ruling on Structured Dismissals and Priority...

Back in December of 2017, the Bankruptcy Protector provided a succinct summary of all cases decided post-Jevic through November 17, 2017. In this update, we discuss the cases decided between November 17, 2017 and May 10,...more

Bankruptcy Purchasers Beware: Fifth Circuit Holds that Unscheduled Patent License Automatically Rejected and Not Among Assets...

Affirming the lower court’s decision, the Firth Circuit recently held that a patent license purchased by a company in a bankruptcy sale was a rejected executory contract and could not have been transferred by the sale in...more

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