Global Insolvency | Daily News Headlines on Insolvency Developments across the Globe

In a recent decision, In re Castleton Plaza, LP, 2013 WL 537269 *1 (Feb. 14, 2013), the Seventh Circuit held that the absolute priority rule – which requires that creditors be paid in full before equity holders receive anything on account of their equity interests under a plan of reorganization – applies equally to the “insiders” of a debtor.

Filed under:

USA, Insolvency & Restructuring, Litigation, Sheppard Mullin Richter & Hampton LLP, Debtor, Secured creditor, United States bankruptcy court, Seventh Circuit

Authors:

Geraldine Ann Freeman , Alan H. Martin , Todd L. Padnos

Location:

USA

Firm:

Sheppard Mullin Richter & Hampton LLP

Chapter 9 - California and federal bankruptcy law/relative bargaining positions

2012-06-29

On June 28, 2012, Stockton, California became the most recent municipality to file for bankruptcy under chapter 9, after having concluded a mandatory mediation process with its creditors. See, In re City of Stockton, California, Case No. 12-32118 (Bankr. E.D. Cal.). Many parties affected by a potential filing by other similarly situated California public entities are seeking to understand the process that precedes a Chapter 9 filing and how to plan for a possible filing.

Filed under:

USA, California, Insolvency & Restructuring, Litigation, Public, Sheppard Mullin Richter & Hampton LLP, Bankruptcy, Debtor, Title 11 of the US Code

Authors:

Alan H. Martin , Matthew B. Holbrook

Location:

USA

Firm:

Sheppard Mullin Richter & Hampton LLP