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Distressed companies open the liability toolbox to avoid full-blown bankruptcies

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USA, Banking, Corporate Finance/M&A, Insolvency & Restructuring, White & Case, Bankruptcy, Private equity, Coronavirus
Distressed-driven restructurings rise amid COVID-19 fallout

High yield bond and leveraged loan issuance for restructurings across the United States and Western and Southern Europe has climbed 65% year-on-year, up from US$29.1 billion for the first nine months of 2019 to US$48 billion over the same period this year.

European Union, USA, Insolvency & Restructuring, White & Case, Coronavirus, Office of Foreign Assets Control (USA)
Third circuit reaffirms viability of deepening insolvency claim

In Official Committee of Unsecured Creditors v. Baldwin (In re Lemington Home for the Aged), 659 F.3d 282 (3d Cir. 2011), the Third Circuit Court of Appeals held, among other things, that the “deepening insolvency” cause of action, which the Third Circuit previously recognized in Official Committee of Unsecured Creditors v. R.F. Lafferty & Co., 267 F.3d 340 (3d Cir. 2001), remains an independent cause of action under Pennsylvania law.

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USA, Pennsylvania, Healthcare & Life Sciences, Insolvency & Restructuring, Litigation, Jones Day, Fiduciary, Federal Reporter, Negligence, Third Circuit
Section 503(b) not exclusive authority for payment of creditor fees and expenses in Chapter 11

Section 503(b) of the Bankruptcy Code delineates categories of claims that are entitled to elevated priority as “administrative expenses.” Under section 503(b)(3)(D), administrative expenses include “actual, necessary expenses” incurred by a creditor, indenture trustee, equity holder, or unofficial committee “in making a substantial contribution” in a chapter 11 case.

USA, Insolvency & Restructuring, Litigation, Jones Day, Bankruptcy, Costs in English law, Debtor, Debtor in possession, Comcast, Title 11 of the US Code, Trustee, United States bankruptcy court