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Just “Released” by the Third Circuit: In re Millennium Lab Holdings II Key Takeaways

In a highly anticipated decision issued last Thursday (on December 19, 2019), the United States Court of Appeals for the Third Circuit held in In re Millennium Lab Holdings II, LLC that a bankruptcy court may constitutionally confirm a chapter 11 plan of reorganization that contains nonconsensual third-party releases. The court considered whether, pursuant to the United States Supreme Court’s decision in Stern v. Marshall, 564 U.S. 462 (2011), Article III of the United States Constitution prohibits a bankruptcy court from granting such releases.

USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, United States bankruptcy court
What’s a Cure, Anyway? Ninth Circuit Holds Creditor Entitled to Post-Default Interest Rate

In early November, the Ninth Circuit held in In re New Investments, Inc. that a debtor was required to “cure” defaults to an agreement using a post-default interest rate, overturning its prior, decades-old decision In re Entz-White Lumber & Supply, Inc., which had held that a debtor could cure agreements at pre-default interest rates.

Background

USA, Company & Commercial, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP
Keep Your Fights Out of Bankruptcy Court: Bad Faith Involuntary Petitions

Creditors seeking to file an involuntary petition against a debtor may want to consider doing their due diligence before using it as a tool in their ongoing disputes with a debtor.

USA, Delaware, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Due diligence, Bad faith, Collateralized debt obligation, United States bankruptcy court, US District Court for District of Delaware