In our article, Jevic: The Supreme Court Gives Structure to Chapter 11 Structured Dismissal, we discussed the narrow holding of Czyzewski et al., v. Jevic Holding Corp., et al., 137 S. Ct. 973, 985 (2017) (“Jevic”), which prohibits non-consensual structured dismissals that violate the Bankruptcy Code’s priority principles.

(W.D. Ky. May 2, 2017)

On May 3, 2017, the Financial Oversight and Management Board for Puerto Rico (the “Oversight Board”), acting on behalf of the cash-strapped Commonwealth of Puerto Rico (the “Commonwealth”), filed for bankruptcy protection in the District Court for the District of Puerto Rico. The Commonwealth’s Title III Petition for Covered Territory or Covered Instrumentality (the “Petition”) was filed in accordance with Title III of the Puerto Rico Oversight, Management, and Economic Stability Act (“PROMESA”), codified at 48 U.S.C. § 2161, et seq.

(6th Cir. May 2, 2017)

The Sixth Circuit reverses the bankruptcy court, finding that the assignment of rents acted as a complete transfer of ownership and the assignor did not retain any interest in the rents. The court analyzes Michigan law on such assignments and concludes that because the debtor/assignor had no rights in the rents assigned, they were not property of the bankruptcy estate. Opinion below.

Judge: Stranch

Attorney for Appellant: Robert N. Bassel

Attorney for Appellee: Jeremy S. Friedberg

(6th Cir. April 28, 2017)

The Sixth Circuit affirms the district court and the bankruptcy court, holding that the sale of certain equity interests in the debtor to third parties was prohibited by the confirmed Chapter 11 plan. While the plan was silent as to such sales, the bankruptcy court did not abuse its discretion when interpreting the plan and considering the intent of the parties based on the negotiations that resulted in the final confirmed plan. Opinion below.

Judge: Donald

(Bankr. S.D. Ind. April 24, 2017)

(W.D. Ky. April 25, 2017)

Last year we reported (here) that Alberta’s Redwater Energy Corporation decision signaled good news for lenders and noteholders secured by Alberta O&G assets because the federal Canadian Bankruptcy and Insolvency Act (“BIA”) prevailed over conflicting provisions in the provincial regulations promulgated by the Alberta Energy Regulator (“AER”).

(6th Cir. B.A.P. April 17, 2017)

(6th Cir. B.A.P. April 17, 2017)

The Sixth Circuit B.A.P reverses the bankruptcy court’s order granting the U.S. Trustee a second extension of the deadline to file a nondischargeability complaint and reverses the subsequent judgment denying the debtor a Chapter 7 discharge. The court finds that the U.S. Trustee failed to establish sufficient cause for an additional extension under Bankruptcy Rule 4004(b). Opinion below.

Judge: Harrison

Attorneys for U.S. Trustee: Amy L. Good, Scott Robert Belhorn, Sharon Nollsch

Attorney for Debtor: Lee Raymond Kravitz