News & Analysis as of

Commercial Bankruptcy

Ward and Smith, P.A.

Entitled to Stay Relief? Prove it.

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For example, you make a commercial real estate loan and record your deed of trust. The borrower pays you for a time but then defaults.  You tried loan forbearance and modification, but it was unsuccessful. The borrower falls...more

Akerman LLP

Your Collateral Can Disappear in Chapter 11

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Suppose you have made a loan and your collateral includes a lien on receivables or inventory. If your borrower files Chapter 11, you are in danger of your collateral disappearing during the Chapter 11 case. Here's how....more

Nelson Mullins Riley & Scarborough LLP

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

Eversheds Sutherland (US) LLP

In re Urban Commons 2 West LLC (Bankr. SDNY Mar. 4, 2025)

Bankruptcy Court Elects to Follow Majority Interpretation of 11 U.S.C. § 363(f)(5) On March 4, 2025, the United States Bankruptcy Court for the Southern District of New York (the Bankruptcy Court) issued a significant...more

Seward & Kissel LLP

Pilgrimage to Bankruptcy and Trial Run

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Dolan’s MSG Networks nears bankruptcy as cord-cutting surges | Front Office Sports - MSG Networks, the Dolan-controlled regional sports networks, face imminent bankruptcy because of $804 million in debt that is currently...more

Robinson+Cole Health Law Diagnosis

Connecticut Establishes Emergency Certificate of Need Process for Hospitals in Bankruptcy

On March 3, 2025, Connecticut Governor Ned Lamont signed a law establishing a new process for hospitals in bankruptcy to apply for an “emergency certificate of need” (CON) to approve a transfer of ownership. The law, titled...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

Pillsbury Winthrop Shaw Pittman LLP

Second Circuit Affirms Priority Payment of Broker Fees Included in Aircraft Leases Utilizing the “Billing-Date Approach” Under...

Under Section 365(d)(5), lease obligations arise when payments become due, requiring debtors to comply with all lease obligations post-petition unless and until the lease is rejected within the statutory grace period. On...more

Ervin Cohen & Jessup LLP

The Exception to the Barton Doctrine Contained in 28 U.S.C. §959(a) Does Not Apply to State Court Receivers

Q: I am a state court receiver for an LLC that owns a number of apartment buildings, which I am now managing. I have been sued by some tenants and a tenant group. They have not obtained receivership court permission to sue...more

Patterson Belknap Webb & Tyler LLP

What To Do When You Expect a Debtor Has Committed Bankruptcy Fraud

The U.S. bankruptcy system is generally an efficient mechanism for companies and individuals seeking to restructure their debts and obtain a fresh start. However, the effectiveness of the bankruptcy system relies on integrity...more

Proskauer Rose LLP

Enforceability of Golden Directors with Bankruptcy Consent Right

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The appointment of an independent director is a powerful tool for private credit lenders. The appointment is designed to introduce a voice of neutrality and fairness into the board’s decision-making process with the hope and...more

Farrell Fritz, P.C.

JOANN, Inc. to Close 500 Stores Nationwide

Farrell Fritz, P.C. on

On January 15, 2025, JOANN Inc. commenced voluntary Chapter 11 proceedings in the U.S. Bankruptcy Court for the District of Delaware. That was the second bankruptcy filing in a year for JOANN, an 82-year old fabric and craft...more

Eversheds Sutherland (US) LLP

Recent ruling provides guidance on 363 asset sales

On February 12, 2025, the US District Court for the District of Delaware issued a significant ruling in the case of HE, Inc. v. Avadim Holdings Inc. and Relion Holdings LLC. This decision arose from the Chapter 11 bankruptcy...more

Awatif Mohammad Shoqi Advocates & Legal...

Preventive Settlement and Restructuring Procedures Under the UAE Bankruptcy Laws

Running a business involves taking risks in order to continue to scale new grounds. Sometimes, these risks may not be successful, leading to debts. Even without risks, debts may be incurred as a result of not being able to...more

Seward & Kissel LLP

Forever 22, Powder Room, and Initial Here

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Forever 21 plans nearly 200 store closures in second bankruptcy, Bloomberg News reports | Reuters - The U.S.-based operator of clothing retail chain Forever 21 is planning to shut down at least 200 additional locations as...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

Troutman Pepper Locke

What Are Some Alternatives to Chapter 11 and How Do They Affect Creditors? - Creditor’s Rights Toolkit

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There are many reasons why a company might be experiencing financial distress, including overwhelming debt, cash flow problems, substantial litigation claims, and/or economic downturn. Companies sometimes use Chapter 11 as a...more

Arnall Golden Gregory LLP

Restructuring Roundup - February 2025

AGG’s Restructuring Roundup newsletter is a monthly update of legal issues and news affecting or related to commercial litigation and bankruptcy. The newsletter is a curation of published articles and news, and contains...more

ArentFox Schiff

The Top 10 Legal Issues for CFOs and GCs of Fashion and Retail Companies

ArentFox Schiff on

In 2025, the retail and fashion industries are bracing for a transformative year, heavily influenced by the policies of the new Trump Administration. These policies promise rapid and significant changes, particularly in areas...more

Ward and Smith, P.A.

Risky Business: Distressed Companies and Payments in the Shadow of Bankruptcy

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A hallmark of bankruptcy law is equal treatment of similarly-situated creditors. The Bankruptcy Code frowns upon a debtor who, while insolvent, pays some creditors but not others in the run-up to bankruptcy – whether...more

Fox Rothschild LLP

Trump Administration’s Proposed Health Care Cuts Pose Risks to Distressed Providers

Fox Rothschild LLP on

Last week, the Trump administration and Congress proposed spending cuts that if enacted are likely to affect federally funded health insurance programs such as Medicaid and the Affordable Care Act (ACA). These cuts could...more

Bennett Jones LLP

The Year Ahead: Five Trends in Distressed Real Estate in 2025

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The Canadian residential development industry is facing an unprecedented wave of financial distress. Debtor-initiated real property (including rental and leasing) insolvencies spiked in 2024, rising by 42.5 percent...more

Miller Canfield

Bankruptcy Dollar Amounts Set to Rise Significantly on April 1, 2025

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Every three years on April 1, the dollar amounts in the Bankruptcy Code are adjusted to account for inflation. The April 1, 2025, increase will be approximately 13.2%, even larger than the nearly 11% increase three years ago....more

Goodwin

Stalking Horse Bidders: What Bid Protections Can You Expect in a Section 363 Sale?

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Conducting an asset sale through a bankruptcy auction — a Section 363 sale — is an effective and common M&A tool for a distressed company. In anticipation of a 363 sale, a Chapter 11 debtor typically tries before its...more

Troutman Pepper Locke

What Types of Releases Are Contained in a Chapter 11 Plan, and Do I Have to Agree to Them? - Creditor’s Rights Toolkit

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Chapter 11 plans contain various releases – some in favor of the debtor and some in favor of certain nondebtor third parties. While creditors are bound by a Chapter 11 discharge, they have options for dealing with a plan's...more

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