Hospital's bankruptcy examiner identifies millions of dollars in unauthorized payments; cites law firm for breach of duty

In a case illustrating the effective use of a bankruptcy examiner, the examiner appointed by the court in the North General Hospital bankruptcy case has concluded that the hospital made over $3 million in unauthorized post-bankruptcy filing payments to the detriment of unsecured creditors. Prior to its bankruptcy filing, North General Hospital and certain related corporate debtors operated a hospital in the Harlem section of Manhattan.

Filed under:
USA, Healthcare & Life Sciences, Insolvency & Restructuring, Wiley Rein LLP, Bankruptcy, Debtor, Unsecured debt, Breach of contract, Fiduciary, Debt, Liquidation, Severance package, Title 11 of the US Code, Chief financial officer
Authors:
H. Jason Gold , Rebecca L. Saitta
Location:
USA
Firm:
Wiley Rein LLP
A skilled examiner can make all the difference

The U.S. Bankruptcy Code provides for the appointment of a bankruptcy examiner to investigate the debtor with respect to allegations of fraud, dishonesty, incompetence, misconduct or mismanagement. The right examiner, with a clearly defined mission, will have a major influence on the bankruptcy process. The difference between a successful financial restructuring or liquidation-resulting in substantial recoveries for the key constituencies-and a time-consuming (and asset-consuming) meltdown, can depend on the approach of the examiner and the examiner's support team.

Filed under:
USA, Delaware, Insolvency & Restructuring, Litigation, White Collar Crime, Wiley Rein LLP, Bankruptcy, Debtor, Unsecured debt, Fraud, Debt, Liquidation, Leveraged buyout, US Department of Justice, Lehman Brothers, Enron, Delaware Supreme Court, United States bankruptcy court, US District Court for District of Delaware, US District Court for SDNY, Trustee
Authors:
H. Jason Gold , Rebecca L. Saitta
Location:
USA
Firm:
Wiley Rein LLP
Supreme Court holds oral argument in Schwab v. Reilly: analyzing a trustee’s duty to object to a facially valid exemption to avoid the risk that an undervalued asset be deemed “fully exempt”?

United States Supreme Court

Washington, D.C.

November 3, 2009

Filed under:
USA, Insolvency & Restructuring, Litigation, Wiley Rein LLP, Tax exemption, Bankruptcy, Debtor, Statutory interpretation, Interest, Consideration, SCOTUS, United States bankruptcy court, Third Circuit, Trustee
Authors:
Rebecca L. Saitta
Location:
USA
Firm:
Wiley Rein LLP