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Delaware District Court finds that Bankruptcy Court Cannot Enter a Final Order Releasing Third-party Claims Without Constitutional Authority

In this post-Stern opinion (the “Opinion”), the United States District Court for the District of Delaware (the “Court”) addresses two main issues with respect to the approval of nonconsensual third-party releases provided for in a chapter 11 plan of confirmation, namely whether a Bankruptcy Court has (1) subject matter jurisdiction to approve, and (2) the constitutional authority to grant such releases. Opinion at 2.

USA, Delaware, Insolvency & Restructuring, Litigation, Cole Schotz PC, United States bankruptcy court, US District Court for District of Delaware
The Increased Use of Combined Hearings and Combined Plan and Disclosure Statements in Delaware

Since February 2016, the Local Rules for the United States Bankruptcy Court for the District of Delaware provide for combined hearings on approval of disclosure statements and confirmation of plans and for the use of combined disclosure statement and plans in liquidating chapter 11 cases.

USA, Delaware, Insolvency & Restructuring, Litigation, Cole Schotz PC, Debtor, United States bankruptcy court
Plan Proponents Beware of “Death Trap” Traps in Chapter 11 Plans and Disclosure Statements

A topic that receives relatively little attention is the practice of plan proponents to include “death trap” provisions in chapter 11 plans. A death trap provision can provide for a distribution, or a larger distribution, to an impaired class in exchange for a favorable vote on the plan.

USA, Insolvency & Restructuring, Litigation, Cole Schotz PC
Third Circuit Court of Appeals: Energy Future Required to Pay Make-Whole Payments

In a decision released on November 17, 2016, the Third Circuit Court of Appeals reversed the holding of the Delaware Bankruptcy Court, affirmed by the District Court, that EFIH is not required to pay make-whole payments. In re Energy Future Holdings Corp., 16-1351, _ F.3d _ (3d Cir. Nov. 17, 2016).

Summary of Facts

USA, Insolvency & Restructuring, Litigation, Cole Schotz PC
Pensions Update: Insolvency and Your Pension

A recent Court of Appeal decision in the UK has ruled that individuals facing bankruptcy cannot be forced to hand over their pensions to pay off outstanding debts. We examine the affect insolvency can have on your pension in this jurisdiction.

The recent UK Court of Appeal decision in Horton v Henry ruled that there was no requirement to draw down funds held in a pension in the event of bankruptcy. As a result of this decision, the UK legal system now appears to acknowledge that pension funds should be out of the reach of a bankruptcy trustee.

United Kingdom, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Mason Hayes & Curran LLP
Waterford Crystal judgment: European Court of Justice finds that the Irish state has failed to protect employees’ pensions

In a long awaited landmark judgment, The European Court of Justice has today found in favour of ten former Waterford Crystal workers who alleged the Irish State had failed in their obligations to correctly implement European Directive 2008/94EC ('The Directive’) on the protection of employees in the event of the insolvency of their employer.

European Union, Ireland, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Mason Hayes & Curran LLP, Defined benefit pension plan, Court of Justice of the European Union