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2024 Notable Cases (Part 5) - Supreme Court Clarifies Bankruptcy Treatment of Securities Penalties and Disgorgement Orders
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On July 31, 2024, the Supreme Court of Canada provided clarity regarding the treatment of administrative monetary penalties and disgorgement orders resulting from securities violations in Poonian v. British Columbia (Securities Commission).

Canada, British Columbia, Capital Markets, Insolvency & Restructuring, Litigation, Baker McKenzie, Supreme Court of Canada
2024 Notable Cases (Part 1) - Supreme Court clarifies Corporate Attribution Doctrine
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As we enter 2025, we look back on five important decisions that made the news in 2024. Here is the the first case.

Canada, Company & Commercial, Insolvency & Restructuring, Litigation, Baker McKenzie, Supreme Court of the United States, Supreme Court of Canada
Supreme Court Clarifies Exceptions to Fresh Start Principle in Canadian Bankruptcies

The general rule in bankruptcy is that a debtor receives a “fresh start” and is discharged from prior debts, but this is subject to certain exceptions. Subsection 178(1) of the Bankruptcy and Insolvency Act (BIA) sets out eight classes of debts that are not released by an order of discharge including an exception for debts that arise out of fraud. In Poonian v.

Canada, British Columbia, Alberta, Insolvency & Restructuring, Litigation, Baker McKenzie, Alberta Securities Commission, British Columbia Securities Commission, Supreme Court of Canada, Court of Appeal of Alberta, British Columbia Supreme Court
To Retain (Under Section 327(a) or 363(b) of the Bankruptcy Code) or Not to Retain? Retention of Liquidation Consultants in Bankruptcy Cases

In a recent opinion – In re Heritage Home Group LLC, et al., Case No. 18-11736 (KG), 2018 WL 4684802 (Bankr. D. Del. Sept. 27, 2018) – the Delaware Bankruptcy Court addressed the longstanding issue of which professional persons must be retained under section 327(a) of the Bankruptcy Code.

USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Liquidation, US District Court for District of Delaware
Absolute(ly) No - A Reminder That When It Comes to Reorganization, Equity Comes Last

A fundamental tenet of chapter 11 bankruptcies is the absolute priority rule. Initially a judge-created doctrine, the absolute priority rule was partially codified in section 1129(b)(2)(B)(ii) of the Bankruptcy Code. Under section 1129, plans must be “fair and equitable” in order to be confirmed.

USA, North Carolina, Banking, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Bankruptcy, Debtor
Fees, Fees, Fees: SDNY Bankruptcy Court Questions the Ongoing Validity of the “Blackstone Protocol” for Investment Banker Fees in Chapter 11 Cases

Background: Professionals’ Fees in Chapter 11 cases

USA, Banking, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Title 11 of the US Code, United States bankruptcy court, US District Court for the Southern District of New York