News & Analysis as of

Chapter 11 Debtors Settlement

Felicello Law PC

Adversary Proceedings in Bankruptcy: What to Expect and Why They Matter

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You may recall Rudy Giuliani’s recent legal woes. First, he lost a defamation lawsuit and faced a judgment of $148.1 million. Then, after he filed for bankruptcy protection, he faced an adversary proceeding to determine his...more

Akerman LLP

Purdue Pharma Foretells a Troubled Future for Bar Orders

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In Harrington v. Purdue Pharma L.P., the Supreme Court held that the Bankruptcy Code does not authorize a bankruptcy court to grant a release and injunction that extinguishes direct claims against nondebtor third parties...more

Seward & Kissel LLP

I Love it When a Plan Comes Together, Shutting Down Forever, and A Matrix Resurrection?

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Purdue Pharma files new bankruptcy plan for $7.4 billion opioid settlement | CNN - Purdue Pharma filed another chapter 11 reorganization plan aiming to implement $7.4 billion in opioid settlements....more

Seward & Kissel LLP

Mortimer—We’re Back, Fabric of Our Lives, and Jump-Start (My Heart)

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Purdue's new Ch. 11 plan sidesteps nonconsensual releases | Law360 - Mediators in the Purdue Pharma bankruptcy case reported that the revised settlement no longer includes nonconsensual third-party releases....more

Nelson Mullins Riley & Scarborough LLP

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

Seward & Kissel LLP

Sack Exchange and Which Craft?

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Purdue's Sackler family offers to increase contribution in new opioid settlement, WSJ reports | Reuters - The Sackler family, owners of Purdue Pharma, is offering to increase their contribution to the opioid lawsuit...more

Jones Day

Second Circuit: Settlement Allocating Value to Unsecured Creditors Without Paying Disputed Secured Claim Did Not Violate Supreme...

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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

Seward & Kissel LLP

Red River Rivalry and Rue the Day

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J&J Offers $6.5 Billion for Talc Lawsuits Ahead of Third Bankruptcy Filing | WSJ - Healthcare giant Johnson & Johnson has offered a settlement pool of nearly $6.5 billion to resolve tens of thousands of talc-related...more

Nelson Mullins Riley & Scarborough LLP

Bondholders Fail to Thwart Global Settlement Approval as Bankruptcy Estate’s Largest Creditor

As bankruptcy practitioners, we generally see proposed settlements get approved without objection. However, when objections are lodged, court involvement is necessitated. In this case, United States Bankruptcy Judge...more

Proskauer Rose LLP

Bankruptcy Court Frowns on SmileDirect’s Dismissal Request

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There is a growing trend of bankruptcy courts approving structured dismissals of chapter 11 cases following a successful sale of a debtor’s assets under section 363 of the Bankruptcy Code. A structured dismissal is a...more

Seward & Kissel LLP

Luna-tic Fringe, Dry Powder, Shopping Spree and Scrubbing Down

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Terraform Labs declares bankruptcy in Delaware | CoinDesk - Terraform Labs Pte., the embattled Singapore crypto firm, has filed for a voluntary petition in Delaware for Chapter 11 bankruptcy. Terraform’s bankruptcy comes...more

Seward & Kissel LLP

Building Blocks, LTL 2.0 DOA, FTX First Try, and UST Last Chance Saloon

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BlockFi’s Chapter 11 plan progresses with conditional court approval | Cointelegraph - United States Bankruptcy Court for the District of New Jersey recently conditionally approved Blockfi’s disclosure statement. If the...more

Kerr Russell

Preparing For Mediation In Bankruptcy

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In a facilitative mediation, a neutral party serves as a mediator and works with the litigants to reach a settlement. The mediator has no power to rule or bind the parties to a judgment or decision, but rather facilitates a...more

Patterson Belknap Webb & Tyler LLP

Delaware District Court Dismisses Appeal by Creditors’ Committee After Case is Converted from Chapter 11 to Chapter 7

The Bankruptcy Code provides for the appointment of a creditors’ committee in chapter 11 bankruptcy cases. See 11 U.S.C. § 1102. There is no parallel provision applicable to chapter 7 cases. When a bankruptcy case is...more

Proskauer - Minding Your Business

An Offer You Can’t Refuse: Are Deathtraps a Tool for Fostering Settlements, or a Method of Coercion?

Accept an unpalatable offer, or reject it and risk getting much less (or even nothing)? This is the choice stakeholders in chapter 11 bankruptcies increasingly face as a result of the proliferation of “deathtrap” provisions...more

Morrison & Foerster LLP - Social Media

“Never Say Never”: Lessons From RadioShack’s Sale of Customer Information

When a bankrupt company’s most valuable assets include consumer information, a tension arises between bankruptcy policy aimed at maximizing asset value, on the one hand, and privacy laws designed to protect consumers’...more

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