News & Analysis as of

Commercial Bankruptcy Bankruptcy Trustees

Offit Kurman

“Void” Doesn’t Mean “Whenever You Get Around to It”

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The Supreme Court has opened the new year with a decision that should convince every company that ignoring a payment demand is a mistake. In Coney Island Auto Parts Unlimited, Inc. v. Burton, the Court resolved a...more

Fox Rothschild LLP

Christmas Tree Shops: Unwrapping the Delaware Court’s Gift for Pleading the Preference Due Diligence Requirement

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If your holiday to‑do list includes lights, cocoa, and some year‑end legal news, here’s a little stocking stuffer for you. In a recent decision from the United States Bankruptcy Court for the District of Delaware, Judge...more

Nelson Mullins Riley & Scarborough LLP

A Primer on Preference Defenses for Consignment Agreements

Judge Mary F. Walrath recently issued an opinion that provides a comprehensive overview of how preference actions work and certain defenses to such actions. Miller v. Indus. Finishes & Sys. (In re CalPlant I, LLC), Adv. No....more

Conyers

The Boundaries of Section 467: How Far will the BVI Court go to Assist Foreign Insolvency Proceedings?

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Part XIX of the Insolvency Act 2003 was introduced to support cross-border cooperation. Still, many years on, there is real debate about the reach of section 467 and how far the court will go to help foreign proceedings....more

Jones Day

Iowa District Court: Avoidance Claims Cannot Be Encumbered by Pre-Bankruptcy Liens

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Causes of action for avoidance and recovery of preferential, fraudulent, or unauthorized transfers often are a means of generating value for the benefit of the estate and creditors in a bankruptcy case. For this reason, many...more

Davidoff Hutcher & Citron LLP

Subchapter V for Restaurants: A Streamlined Chapter 11 Option for New York Owners

Traditional Chapter 11 can feel out of reach for many independent and small‑group New York restaurants: it’s complex, time‑consuming, and expensive. Subchapter V, a relatively new part of Chapter 11, was designed to give...more

ArentFox Schiff

Suppliers Beware: Delaware Bankruptcy Court Rejects Ordinary Course Defense for Preference Payment Within Standard Credit Terms

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US bankruptcy law is designed to promote and reconcile two core policy objectives: providing relief to financially distressed debtors and ensuring the equitable treatment of creditors vis-à-vis the debtor and other creditors....more

Orrick, Herrington & Sutcliffe LLP

Bankruptcy Court Approves Trustee’s Request to Dismiss Fintech Debtor Case

On November 12, the U.S. Bankruptcy Court for the Central District of California issued an order dismissing a Chapter 11 case involving a debtor fintech company represented by a Chapter 11 trustee. The court granted the...more

Mayer Brown

German Insolvency Law - Rights and Duties of the Creditors' Committee

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RIGHTS AND DUTIES OF THE CREDITORS' COMMITTEE - The principal body representing insolvency creditors is the creditors' assembly, through which creditors jointly exercise their rights vis-a-vis the insolvency debtor, the...more

Stark & Stark

Defending Rite-Aid’s Preference Claims - Know Your Rights

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​​​​​​​Over one thousand creditors were “preferred” as Rite Aid ran up to its first bankruptcy filing in 2023. That is what the trustee appointed to liquidate Rite Aid’s assets is alleging in a tidal wave of lawsuits recently...more

Seward & Kissel LLP

Lacking Merit and First Watch

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Dr. Phil Loses Trial Over His Media Startup’s Bankruptcy | The Hollywood Reporter - The case will proceed as a Chapter 7 liquidation after a U.S. bankruptcy judge rejected McGraw’s bid to keep it in Chapter 11....more

Blake, Cassels & Graydon LLP

Lorsque la pyramide s’écroule : Recouvrement des fonds à la suite d’une combine à la Ponzi

Lorsqu’une combine à la Ponzi s’effondre, de quelle manière un syndic de faillite doté de ressources limitées devant répondre à des centaines d’investisseurs innocents, dont certains en ressortent bénéficiaires et d’autres...more

Ward and Smith, P.A.

Depositor's Remorse: How a Million-Dollar Deposit Became Bankruptcy Estate Property

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In Chapter 7, more money in the estate means more money for creditors. In a decision this year by the Fourth Circuit Court of Appeals, In re Star Development Group, LLC, a debtor tangled with a Chapter 7 Trustee over a $1...more

McDermott Will & Schulte

When insureds and intermediaries file for bankruptcy: What insurers should know

Recent economic news reports have highlighted increasing inflation rates, rising unemployment numbers, and growing consumer credit delinquencies. Other factors, including medical and student loan debt, may add to the...more

Blake, Cassels & Graydon LLP

When the Ponzi Music Stops: The Recovery of Funds

When a Ponzi scheme collapses, how does a bankruptcy trustee with limited resources and hundreds of innocent investors — some winners, some losers — address all the competing issues in an equitable and cost-effective way? The...more

The Rodman Law Group, LLC

Southern District of New York Finds Merchant Cash Advance Financier (“MCA”) Really Operated as Disguised Lender

For those operating in the MCA space, New York federal and state courts hold a preeminent role in guiding FinTech companies to structure non-loan products in ways that are alternative, at times clever, yet legally compliant....more

Jones Day

Delaware Bankruptcy Court Allows Trustee to Pursue Recovery of Fraudulent Transfers for the Sole Benefit of Subordinated...

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The Bankruptcy Code provides a bankruptcy trustee or chapter 11 debtor-in-possession ("DIP") with the power to avoid and recover certain fraudulent transfers that a creditor could have avoided outside of bankruptcy under...more

Troutman Pepper Locke

What Happens to My Unpaid Wages if My Employer Files for Bankruptcy? - Creditor’s Rights Toolkit

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When a company files for bankruptcy, it can be an unsettling time for the company's employees who may worry about job and financial security, including unpaid wages and employee benefits. While these concerns are legitimate,...more

Jones Day

New York Bankruptcy Court Adopts "Realistic Possibility" Standard for Free and Clear Sales Under 11 U.S.C § 363(f)(5)

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Section 363(f)(5) of the Bankruptcy Code allows a bankruptcy trustee to sell estate property free and clear of any competing interest in the property (such as a lien or other security interest) if the interest holder "could...more

Whiteford

Client Alert: Bankruptcy Meets State Court: Lessons from a $4M Escrow Dispute - June 30, 2025

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When bankruptcy courts and state courts vie for authority in complex financial disputes, the outcome can reshape recoveries for creditors, investors, and businesses. This tension was front and center in Silverman v....more

Greenberg Glusker LLP

United States v. Miller: U.S. Supreme Court Narrows the Scope of Sovereign Immunity Abrogation Under Section 106(a)

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The United States Supreme Court has held that the sovereign immunity waiver in Section 106(a) of the Bankruptcy Code does not extend to state law claims “nested” within a Section 544(b) claim for relief, depriving bankruptcy...more

Jones Day

Business Restructuring Review Vol. 24, No. 3 | May–June 2025

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Bankruptcy trustees and chapter 11 debtors-in-possession (“DIPs”) frequently seek to avoid fraudulent transfers and obligations under section 544(b) of the Bankruptcy Code and state fraudulent transfer or other applicable...more

Jones Day

U.S. Supreme Court Rules that Bankruptcy Code Provides Only Limited Abrogation of Sovereign Immunity to Avoidance Actions

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Bankruptcy trustees and chapter 11 debtors-in-possession ("DIPs") frequently seek to avoid fraudulent transfers and obligations under section 544(b) of the Bankruptcy Code and state fraudulent transfer or other applicable...more

Faegre Drinker Biddle & Reath LLP

Supreme Court Decides United States v. Miller

On March 26, 2025, the United States Supreme Court decided United States v. Miller, No. 23-824, resolving a circuit split and holding that in an action brought under § 544(b) of the bankruptcy code, § 106(a)’s sovereign...more

Jones Day

New Jersey Bankruptcy Court: Motion Not Necessary to Assume Unexpired Lease

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The ability to assume, assume and assign, or reject executory contracts and unexpired leases is a power central to ability of a bankruptcy trustee or chapter 11 debtor-in-possession ("DIP") to maximize the value of the estate...more

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