• The Fifth Circuit's December 2024 decision in Serta Simmons Bedding invalidated an uptier transaction in which certain lenders provided new money financing and exchanged existing debt for new super-priority debt.
• The Fifth Circuit criticized the doctrine of equitable mootness, rejecting the argument that the doctrine barred the court's review of the bankruptcy court's plan confirmation order because the plan had already been substantially consummated and relied upon by third parties.
• The Fifth Circuit's refusal to apply the doctrine of equitable mootness is not

Valuation is a critical and indispensable element of the Chapter 11 bankruptcy process. It drives many aspects of a Chapter 11 case, from petition to plan confirmation, in all circumstances. But the COVID-19 pandemic has added a layer of complexity—and volatility—to bankruptcy valuation issues. This is likely to affect decisions about whether and when a company should enter Chapter 11, and how creditors and shareholders will be treated as a result of Chapter 11 filings.