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Fifth Circuit Joins Circuit Split Upholding Bankruptcy Court Jurisdiction to Hear Social Security Claims: Case Has Impact for Health Care Bankruptcies

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USA, Healthcare & Life Sciences, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Medicare, Medicaid, US Congress, Social Security Administration, Fifth Circuit
Fifth Circuit Analyzes Creditor’s Impairment, Entitlements to Contractual Make-Whole and Post-Petition Interest Under Solvent-Debtor Chapter 11 Plan

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USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, United States bankruptcy court, Fifth Circuit
Fifth Circuit Disallows Make-Whole Payment in Bankruptcy

On Jan. 19, 2019, the U.S. Court of Appeals for the Fifth Circuit vacated a bankruptcy court decision awarding Ultra Petroleum Corp. noteholders $201 million in make-whole payments and $186 million in post-petition interest. Under the note agreement, upon a bankruptcy filing, the issuer is obligated for a make-whole amount equal to the discounted value of the remaining scheduled payments (including principal and interest that would be due after prepayment) less the principal amount of the notes.

USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Bankruptcy, Fifth Circuit
Fifth Circuit Holds That Creditor Lacks Constitutional Standing to Appeal

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USA, Insolvency & Restructuring, Litigation, Shipping & Transport, Kramer Levin Naftalis & Frankel LLP, ING Group, Fifth Circuit
Closing in on Make-Wholes: The Fifth Circuit’s Ultra Decision

On January 17, 2019, the United States Court of Appeals for the Fifth Circuit (the “FifthCircuit”) issued a decision in In re Ultra Petroleum Corp. that could have significant implications for creditors seeking payment of contractual make-whole amounts and post-petition interest from chapter 11 debtors.[1]

USA, Insolvency & Restructuring, Litigation, Morrison & Foerster LLP, Fifth Circuit
Fifth Circuit Holds Executory Contract Not Listed on Bankruptcy Schedules Is Automatically Rejected Upon Expiration of 60-Day Period in Chapter 7 and Not Capable of Being Sold

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The Fifth Circuit recently held in RPD Holdings, L.L.C. v. Tech Pharmacy Services (In re Provider Meds, L.L.C.), No. 17-1113 (5th Cir. Oct. 29, 2018), that a patent license that was not specifically listed on the debtors’ bankruptcy schedules was automatically deemed rejected where it was not assumed within 60 days of the cases’ conversion from Chapter 11 to Chapter 7.

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USA, Texas, Insolvency & Restructuring, Litigation, Patents, Kramer Levin Naftalis & Frankel LLP, Bankruptcy, Fifth Circuit
Courts Have the Flexibility to Select Valuation Date in Cram Down Scenario; Fifth Circuit Remands to Bankruptcy Court for Re-valuation Based On Improper Deduction of Waived Fees

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USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Fifth Circuit
Fifth Circuit Affirms Dismissal of Claims Relating to Pre-Petition Payments to D&O’s

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USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Fifth Circuit, US District Court for Southern District of Texas
Bad faith filing no obstacle for hotel reorganization

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USA, Texas, Insolvency & Restructuring, Litigation, Real Estate, Kramer Levin Naftalis & Frankel LLP, Bankruptcy, Injunction, Foreclosure, Bad faith, United States bankruptcy court, Fifth Circuit
Tarnishing the debtor’s Halo – police power exemption applied to private actions

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USA, Insolvency & Restructuring, Litigation, Telecoms, Kramer Levin Naftalis & Frankel LLP, Fifth Circuit