Bolstering the Majority Rule: Bankruptcy Court Holds that Adjudication of Avoidance Liability Is Prerequisite to Disallowance of Transferee's Claim Under Section 502(d)

The U.S. Bankruptcy Court for the Eastern District of North Carolina recently added some weight to the majority rule on an issue that has long divided bankruptcy and appellate courts. In In re Southern Produce Distributors, Inc., 2020 WL 1228719 (Bankr. E.D.N.C. Mar.

Filed under:
USA, North Carolina, Insolvency & Restructuring, Litigation, Jones Day, Title 11 of the US Code
Authors:
Daniel J. Merrett (Dan) , Mark G. Douglas
Location:
USA
Firm:
Jones Day
Washington District Court Overturns Approval of Third-Party Releases in a Settlement Agreement and Related Free-and-Clear Sale

For nearly 25 years, courts in the Ninth Circuit have consistently refused to sanction nonconsensual third-party releases as part of chapter 11 plans. A ruling recently handed down by the U.S. District Court for the District of Washington reaffirms and extends that proposition. In In re Fraser’s Boiler Serv., Inc., 2019 WL 1099713 (D. Wash. Mar.

Filed under:
USA, Washington, Insolvency & Restructuring, Insurance, Litigation, Jones Day, Debtor, Title 11 of the US Code, Ninth Circuit, United States bankruptcy court, Fifth Circuit, Tenth Circuit
Authors:
Daniel J. Merrett (Dan) , Mark G. Douglas
Location:
USA
Firm:
Jones Day