In many bankruptcy cases, disappointing recoveries lead creditors to look for deep pockets as targets. This scrutiny is frequently directed at a bankrupt company’s directors and officers (D&Os or fiduciaries) in so-called D&O suits. These lawsuits are most often brought by bankruptcy trustees, creditors’ committees, liquidating trusts, and other bankruptcy estate representatives.

In its recent decision Czyzewski v. Jevic Holding Corp., 137 S. Ct. 973 (2017), the United States Supreme Court held that a bankruptcy court may not approve a structured dismissal of a chapter 11 case that provides for distributions that fail to follow the standard priority rules, unless the affected creditors consent to such treatment.

Bankruptcy Code protects certain Ponzi scheme payments. The trustee for debtor Bernard L. Madoff Investment Securities (BLMIS) sued to avoid fictitious profits paid by BLMIS to hundreds of customers over the life of the Madoff Ponzi scheme. The defendant customers moved to dismiss certain of these avoidance claims pursuant to 11 USC Sec. 546(e), which shields from recovery securities-related payments made by a stockbroker. The trial court agreed that Sec. 546(e) barred the claims, dismissing them, and the Second Circuit affirmed.

A company’s intellectual property rights^[1] are some of its most valuable and most enduring assets. They are also often the most encumbered, or the most enhanced, by contract.

European Union

Since 2011, there have been an increasing number of restructurings in higher education.  What may have started with the foreclosure and sale of ATI Schools and Colleges has continued this year with last month’s 

On March 27, 2020, Congress enacted, and President Trump signed into law, the Coronavirus Aid, Relief and Economic Security (CARES) Act to provide financial relief to individuals and small business harmed by the coronavirus disease 2019 (COVID-19) pandemic. The CARES Act included an initial allocation of $349 billion to the Paycheck Protection Program (PPP), a convertible loan program under Section 7 of the Small Business Act (SBA).

The United States Bankruptcy Court for the District of Delaware recently issued an opinion that could mean that directors and officers of insolvent entities face liability for damages caused by the failure to timely file for bankruptcy protection.

Over the last several years, a wide range of healthcare companies, among them hospitals, home health agencies and continuing care facilities, have faced financial distress as a result of declining revenues, high operating costs, reduction in reimbursements rates and increasing competition.  Seeking relief, many hospitals and other healthcare companies are commencing chapter 11 cases and selling their assets to third parties in order to shed liabilities and facilitate an orderly transfer of their assets.  Fairmont General Hospital, Saint Francis Hospital, Natchez Regional Medical C

While the impact of the coronavirus disease (COVID-19) is as of yet uncertain, one thing is clear: the global outbreak of COVID-19 has caused − and will likely continue to cause − a precipitous decrease in demand and supply as a result of quarantine orders, business closures, and social distancing, all aimed at flattening the curve of the pandemic. As a result, a dramatic and pronounced economic downturn is predicted as the pandemic’s impact touches virtually all businesses, regardless of geography or industry.