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Chapter 11 Liability

Cadwalader, Wickersham & Taft LLP

Fifth Circuit Holds that Gatekeeping and Injunction Provisions in Bankruptcy Plans Cannot Shield Non-Debtors From Liability

On March 18, 2025, the United States Court of Appeals for the Fifth Circuit held in In re Highland Capital Mgmt., L.P., that a plan’s gatekeeping and injunction provisions could not extend to claims against most non-debtors...more

Jones Day

Uptiers in 2025: Impact of the Serta and Mitel Decisions on Liability Management Exercises

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Late last year, the U.S. Court of Appeals for the Fifth Circuit and the Appellate Division of the Supreme Court of the State of New York issued important rulings regarding the validity of uptier “liability management...more

Holland & Knight LLP

American Tire: Rubber Hits the Road in Non-Ratable Chapter 11 Liability Management Transaction

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Minority senior secured lenders in syndicated deals rely on, among other provisions, the "sacred right" protections contained in the credit documents to protect the benefit of their bargained-for agreement: primarily, that...more

Proskauer Rose LLP

The Evolving New Normal 2024 Private Credit Restructuring Year in Review

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In many ways, 2024 continued existing trends in private credit: modest levels of M&A activity, competition among direct lenders to deploy capital, higher-for-longer interest rates, persistent inflation, elevated default...more

Akin Gump Strauss Hauer & Feld LLP

Serta - Fifth Circuit Decision

On December 31, 2024, the U.S. Court of Appeals for the Fifth Circuit issued its long-awaited decision regarding the permissibility of the Serta Simmons Bedding (Serta) uptier liability management exercise (the 2020 Uptier)...more

Morrison & Foerster LLP

Latest Uptier Decisions in Serta and Mitel Remind Contract Language Matters

The caselaw on “uptiers” as liability management exercises (LMEs) grew by two opinions on the last day of 2024. In Serta, the Fifth Circuit reversed the bankruptcy court’s blessing of the pre-bankruptcy uptier and...more

MG+M The Law Firm

$5 Billion Punitive Damages Awarded in Alkaline Water Contamination Lawsuit: What This Means for Future Legal Cases

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A Nevada state court handed down a monumental verdict in a case involving alleged contamination of an “alkaline water” health drink, with a jury awarding $5 billion in punitive damages. This decision follows a series of...more

Seward & Kissel LLP

Blink and You’ll Miss It, Beauty Products Liability, Shooting for 3, and Tetherball

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Blink Fitness files for Chapter 11 bankruptcy | Bloomberg - Blink Fitness, a gym chain owned by Equinox, filed for Chapter 11 bankruptcy protection in Delaware, citing assets and liabilities each ranging from $100 million...more

Goldberg Segalla

Third Circuit Affirms Bankruptcy Court’s Order Dismissing LTL Management/Johnson & Johnson’s Second Chapter 11 Petition

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On June 25, 2024, the Third Circuit Court of Appeals rendered an opinion affirming the New Jersey Bankruptcy Court’s decision to dismiss LTL Management/Johnson & Johnson’s second bankruptcy case for “want of good faith...more

Dechert LLP

Dechert Re:Torts - Issue 17

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Are Litigation Funders the Truest Parties in Interest? In the April 2023 issue of Re:Torts we covered a dispute that arose in In re Broiler Chicken Antitrust Litigation between third-party litigation funder Burford...more

Pillsbury Winthrop Shaw Pittman LLP

Conflicting Court Rulings on Subchapter V Eligibility Leave Small Businesses in Limbo

Two recent bankruptcy court decisions reflect a split of authority on subchapter V eligibility. In re Macedon Consulting Inc. finds that all future amounts due under an unexpired lease qualify as “noncontingent and...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

Skadden, Arps, Slate, Meagher & Flom LLP

Insights – April 2023 | Insights

This edition of Skadden’s quarterly Insights looks at the rising number of de-SPACed companies seeking Chapter 11 protection, the growth of a market designed to assume legacy liabilities, an effort to establish...more

Cole Schotz

Considerations if Your Customer is Potentially Facing Bankruptcy

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With the recent uptick in Chapter 11 filings and a further increase expected in the coming quarters, companies across all industries would be wise to consider certain precautionary measures if a customer begins missing or...more

Adams & Reese

What Creditors Need to Know About Disclosure Statements in Chapter 11 Bankruptcy Cases

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A debtor’s goal in chapter 11 is to confirm a plan of reorganization. And a creditor’s goal is to maximize recovery under that plan. So, it is critical, of course, for creditors to scrutinize a proposed plan before voting....more

White and Williams LLP

Fourth Circuit Holds That Cooperation Clause Does Not Apply to Insured's Conduct in Negotiating Bankruptcy Plan

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In Hanson Permanente Cement, Inc. v. Kaiser Gypsum Co. (In re Kaiser Gypsum Co.), ____ F. 4th ____, 2023 U.S. App. LEXIS 3482 (4th Cir. Feb. 14, 2023), the Fourth Circuit ruled that an insured’s obligations under a typical...more

Cole Schotz

FTX Trading Ltd.

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On November 11, 2022, the world’s second-largest cryptocurrency exchange FTX Trading Ltd. filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No....more

Dechert LLP

Houst Limited Restructuring Plan: High Court Sanctions SME Restructuring Plan to Cram Down HMRC

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On 22 July 2022, the English High Court sanctioned Houst Limited’s (“Houst” or the “Company”) restructuring plan (the “Restructuring Plan”), which significantly, is the first time a Restructuring Plan has been used to cram...more

White and Williams LLP

District Court Overturns Purdue Pharma’s Chapter 11 Plan and Related Releases of Sackler Family from Opioid Liability Claims

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On December 16, 2021, Judge McMahon of the United States District Court for the Southern District of New York (District Court) issued her decision in In re: Purdue Pharma LP, overturning the bankruptcy judge’s confirmation of...more

Dechert LLP

New Bill Would End the ‘Texas Two-Step’ and Eliminate Non-Debtor Releases in Chapter 11

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Highlights Introduction Last week, the House Judiciary Committee voted to send the Nondebtor Release Prohibition Act of 2021 to the floor of the house for vote. If passed, the bill would introduce two major amendments to the...more

Farella Braun + Martel LLP

[Webinar] Unplugged Renewable Energy Series - PG&E Bankruptcy: Lessons Learned and a Path Forward - August 4th, 5:00 pm - 7:00 pm...

The California power giant, PG&E, has emerged from the country’s largest utility bankruptcy proceeding as a dramatically different company. Not only has PG&E exited Chapter 11, it has completed a restructuring that will have...more

Burr & Forman

The Gross and the Fair of Toxic Tort Claims in Bankruptcy

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Environmental-contamination claims present tricky issues for debtors seeking a fresh start through bankruptcy, as well as for creditors and purchasers of distressed assets. Difficult issues emerge in the context of when...more

Sheppard Mullin Richter & Hampton LLP

Ninth Circuit Weighs In On Circuit Split Regarding CERCLA Contribution Claims After Settlement and The Statute of Limitation

Asarco, LLC v. Atlantic Richfield Company, 866 F.3d 1108 (9th Cir. 2017). In a Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) contribution case, the Ninth Circuit addressed three issues of...more

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