New York court allows reorganized debtor to prosecute action not identified in its disclosure statement

A New York state court recently denied a motion to dismiss an action brought by a reorganized debtor against the former chair of the official committee of unsecured creditors in the debtor's chapter 11 case.1  The decision is noteworthy for its holding that the reorganized debtor had standing to commence an action against the former committee member even though the claim was not expressly listed as an asset of the estate in the debtor's chapter 11 disclosure statement.

Background

Filed under:
USA, New York, Insolvency & Restructuring, Litigation, Herrick Feinstein LLP, Debtor, United States bankruptcy court
Authors:
Paul Rubin , Justin B. Singer
Location:
USA
Firm:
Herrick Feinstein LLP
The cheese stands alone": United States trustee forces transfer of Houghton Mifflin Harcourt cases despite objection of all other parties

Congratulations!  You just successfully negotiated a prepackaged chapter 11 plan of reorganization for a multi-billion dollar enterprise which leaves general unsecured creditors unimpaired and has been unanimously approved by the debtors' creditors.  It's smooth sailing from here, right?

Filed under:
USA, Insolvency & Restructuring, Litigation, Herrick Feinstein LLP, Bankruptcy, Debtor, Secured loan
Authors:
Paul Rubin , Stephen Selbst , Justin B. Singer
Location:
USA
Firm:
Herrick Feinstein LLP