News & Analysis as of

WARN Act Commercial Bankruptcy

Blindauer Law PLLC - Government Contracts...

Government Contracts Issues for a Recession

The bond yield curve inverted in October 2022. When that occurred, it started a countdown to recession. At least it has every time since 1968. Specifically, for the last eight recessions since 1968, every single recession was...more

Miller Nash LLP

Employer Issues in Bankruptcy

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Numerous issues arise when an employer files for bankruptcy. Some of the most crucial issues relate to: (i) priorities for claims of employees; (ii) notices pursuant to the Worker Adjustment and Retraining Notification (WARN)...more

Dorsey & Whitney LLP

Option III - Structured Bankruptcy Dismissals are Alive and Well Even After Jevic

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Justice Breyer of the Supreme Court previously recognized that a chapter 11 bankruptcy case can generally lead to the following results: ..reorganization through a confirmed chapter 11 plan, where a deal with creditors...more

Dorsey & Whitney LLP

2020 Recap: Corporate Restructuring Review

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Amidst a global pandemic, there were plenty of interesting bankruptcy and restructuring events and changes that occurred in 2020. We saw new Bankruptcy Code amendments go into effect (through the Small Business Reorganization...more

Miles & Stockbridge P.C.

Congress Again Considers Expanding Worker Protections in Bankruptcy

With the COVID-19 pandemic creating a significant upswing in Chapter 11 bankruptcies and with more expected to come, Congress is once again considering substantial changes to the way the Bankruptcy Code addresses worker...more

Mintz - Bankruptcy & Restructuring Viewpoints

Top 10 Questions Human Resources May Have When Their Company is Filing for Chapter 11 Protection

Businesses in a wide range of industries may now be forced to consider bankruptcy given the unprecedented economic challenges caused by the COVID-19 pandemic. This advisory is designed to provide a high-level view of issues...more

Dechert LLP

In Second Circuit, “Economic Reality” and Degree of Control to Determine Whether an “Employer” Faces “Single Employer” Liability

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In a recent decision on motions for summary judgement in the TransCare case, the SDNY bankruptcy court addressed the test for the imposition of liability under the US and New York Worker Adjustment and Retraining Notification...more

Skadden, Arps, Slate, Meagher & Flom LLP

COVID-19 Entertainment Update: Guidance for Entertainment Companies

The global coronavirus (COVID-19) crisis continues to have a devastating impact across all segments of the entertainment industry. The cancellation or postponement of film and television productions, concerts, sporting...more

Troutman Pepper

Restructuring In The Time Of Coronavirus

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An increasing number of businesses — even those that have traditionally been financially and operationally sound — are now experiencing unanticipated revenue losses as a result of the coronavirus pandemic. Companies may find...more

Epstein Becker & Green

Major Revisions to New Jersey’s WARN Act Require Payment of Severance, Expand Notice Requirements, and Increase Liability for Mass...

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On January 21, 2020, New Jersey Governor Murphy enacted major revisions to the New Jersey Millville Dallas Airmotive Plant Job Loss Notification Act, commonly referred to as the New Jersey WARN Act (“NJ WARN Act”), that make...more

Jones Day

Without WARN-ing: Third Circuit Clarifies WARN Act's Unforeseen Business Circumstances Exception

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Valera v. AE Liquidation, Inc., the Third Circuit Court of Appeals agreed with five other circuits in holding that WARN notice was not required where an external event outside the employer's control triggering layoffs was...more

Kramer Levin Naftalis & Frankel LLP

Third Circuit Applies More Flexible Standard for WARN Exemption

The Third Circuit, in In re AE Liquidation, Inc., Case No. 16-2203 (3d Cir. Aug 04, 2017) held that the Debtors were not liable under the WARN Act for failing to warn employees of furloughs and layoffs until those furloughs...more

Dechert LLP

Third Circuit Holds No Need to Warn Under WARN ACT Unless Circumstances Causing Layoff Are Probable

Dechert LLP on

The Worker Adjustment and Retraining Notification (WARN) Act in the U.S. requires that employers give sixty days’ notice to its employees before effecting a mass layoff. The WARN Act contains exceptions to the notice...more

Fisher Phillips

Web Exclusive: Supreme Court Review: Mixed Bag For Employers

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The 2016-17 Supreme Court term was truly a mixed bag for employers. The Court limited presidential power, reined in the appellate courts’ authority to review and overturn trial court decisions regarding EEOC subpoenas,...more

Mintz - Bankruptcy & Restructuring Viewpoints

Exculpatory Provisions Under Delaware Law: Say What You Mean And Mean What You Say

Exculpation provisions in operating agreements must be carefully crafted in order to protect members, managers, directors and officers for breaches of fiduciary duties...more

Snell & Wilmer

Bankruptcy courts cannot approve structured dismissal of Chapter 11 case that violates absolute priority rule

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In Czyzewski v. Jevic Holding Corp., 137 S. Ct. 973 (2017), the U.S. Supreme Court held that a bankruptcy court was not authorized to approve a structured dismissal of a Chapter 11 case that violated the absolute priority...more

Bradley Arant Boult Cummings LLP

High Court Rules Final, Nonconsensual Structured Dismissals Invalid

The Bankruptcy Code contemplates that a Chapter 11 bankruptcy case will be concluded in one of three ways: a confirmed Chapter 11 plan, a conversion to Chapter 7 for liquidation of remaining estate assets, or a dismissal of...more

A&O Shearman

Priority is Paramount: Supreme Court Holds Structured Dismissals Cannot Violate Bankruptcy Code’s Established Priorities

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On March 22, 2017, the United States Supreme Court (the Supreme Court) in In re Jevic Holdings Corp. held that a final disposition of estate funds cannot violate the Bankruptcy Code’s priority system by distributing value to...more

Mintz - Bankruptcy & Restructuring Viewpoints

Keep On Truckin’: Priority Rules Still Rule in Structured Dismissals

In 2015, Distressing Matters reported on the Third Circuit’s decision in In re Jevic Holding Corp., wherein that panel ruled that, in rare circumstances, bankruptcy courts may approve the distribution of settlement proceeds...more

Snell & Wilmer

Legal Alert - U.S. Supreme Court - Bankruptcy Court Not Authorized to Approve Structured Dismissal of Chapter 11 Case Violating...

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On March 22, 2017 in Czyzewski v. Jevic Holding Corp. (SCOTUS Case no. 15-649), the Supreme Court of the United States held that a bankruptcy court was not authorized to approve a structured dismissal of a Chapter 11 case...more

Ward and Smith, P.A.

Supreme Court Absolutely Affirms the Absolute Priority Rule

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The United States Supreme Court recently decided a case that impacts lenders and other creditors in Chapter 11 bankruptcy proceedings. The Supreme Court held that a bankruptcy court may not approve a “structured dismissal” of...more

Holland & Knight LLP

Supreme Court Limits Use of Structured Dismissals of Chapter 11 Cases

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In a 6-2 decision on March 22, 2017, the U.S. Supreme Court determined that bankruptcy courts may not approve a structured dismissal of a Chapter 11 case that provided for distributions of estate funds that do not follow...more

Foley & Lardner LLP

Supreme Court Bars Structured Dismissals of Bankruptcy Cases That Violate the Code’s Priority Distribution Scheme – Could it...

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On March 22, 2017 the Supreme Court issued its long-awaited ruling regarding the legality of structured dismissals of Chapter 11 bankruptcy cases that would make final distributions of estate assets to creditors in a manner...more

Foley & Lardner LLP

Yes, Virginia, there is a Code Priority Scheme: Supreme Court Strikes Down Structured Dismissals in Jevic

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A potential threat to the Code’s priority scheme is the allowance of “structured dismissals,” which include a settlement as part of the dismissal of the chapter 11 case that would distribute estate assets in a manner that...more

Jones Day

U.S. Supreme Court Invalidates Non-Consensual Structured Dismissal Deviating from Bankruptcy Priority Scheme

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The U.S. Supreme Court ruled on March 22, 2017, in Czyzewski v. Jevic Holding Corp., that without the consent of affected creditors, bankruptcy courts may not approve "structured dismissals" providing for distributions that...more

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