Not so long ago US Bankruptcy Judge Robert Drain of the Southern District of New York had his time in the barrel—pilloried in the media for approving releases to members of the Sackler family as part of a bankruptcy plan that would settle global opioid-related claims against Purdue Pharma, a bankruptcy debtor, and affiliated family members and other persons who were not bankruptcy debtors.
Chapter 11 plans are a form of stakeholder democracy. Elaborate rules govern voting and its consequences, and, in Section 1125(b), how acceptances—and rejections—may be solicited. Well, sort of.
Yeni Gelişme
5. Yargı Paketi olarak da anılan İcra ve İflas Kanunu ile Bazı Kanunlarda Değişiklik Yapılması Hakkında Kanun Teklifi (“Teklif”), TBMM Adalet Komisyonu tarafından kabul edildi. Kabul edilen Teklifin kanunlaştırılması doğrultusunda Salı günü TBMM Genel Kurulu’nda görüşmeler başladı. Söz konusu Teklif ile icra ve iflas süreçlerinde iş yoğunluğunun azaltılması ve verimliliğin artırılması amacıyla İcra ve İflas Kanunu’nda önemli değişiklikler öngörülüyor.
New development
The Justice Commission of the Parliament accepted the Bill on Amendments to the Enforcement and Bankruptcy Code and Other Codes (“Bill“), also known as the Fifth Judicial Package. In line with the enactment of the accepted Bill, discussions began at the General Assembly of the Grand National Assembly of Turkey on Tuesday. With the Bill, significant changes are envisaged regarding the Enforcement and Bankruptcy Code to reduce workload and increase efficiency in enforcement and bankruptcy processes.
Chapter 11 plans of reorganization provide creditors with recoveries (cash or new securities) in exchange for a release and discharge of all claims against the debtor. Many Chapter 11 plans go a step further to release claims against related entities and persons who are not debtors in the case. Members of Congress have recently proposed legislation that could prohibit such nonconsensual third-party releases.
Yeni Gelişme
4299 sayılı ve 14 Temmuz 2021 tarihli Cumhurbaşkanlığı kararı ile Çerçeve Anlaşmalar kapsamında gerçekleştirilen finansal yeniden yapılandırma işlemlerini ve bu işlemler için tanınan teşvikler ve vergi muafiyetlerini düzenleyen Bankacılık Kanunu’nun geçici 32. maddesinin geçerlilik süresi iki yıl daha uzatıldı. Geçici 32. Madde ve Çerçeve Anlaşma’ya ilişkin bültenlerimize aşağıdaki bağlantılardan ulaşabilirsiniz:
Değişiklik Ne Getiriyor?
Recent development
With a presidential decision numbered 4299 and dated 14 July 2021, the effectiveness of Temporary Article 32 of the Banking Law regulating the financial restructuring transactions and related incentives and tax exemptions contemplated under the Framework Agreement has been extended for an additional two years. Please refer to the following links for our alerts on the introduction of Temporary Article 32 and the Framework Agreement:
What’s new?
After a sluggish year in 2020 for mergers and acquisitions among hospitals and health systems, 2021 has shown renewed vigor and is poised for considerable transactional activity.
The ability to assume or reject executory contracts is one of the primary tools used by debtors in a Chapter 11 reorganization. Where a debtor has a contract with a third party that is “executory”—meaning that ongoing performance obligations remain for both the debtor and the contract counterparty on the date of the bankruptcy filing—the debtor can choose to either assume or reject the contract under 11 USC § 365.
Subordination agreements are generally enforced in accordance with applicable non-bankruptcy law in bankruptcy cases. The decision in In re Fencepost Productions, Inc., No. 19-41542, 2021 WL 1259691 (Bankr. D. Kan. Mar. 31, 2021) recognizes limits to this rule. While the subject subordination agreements were generally enforceable, the assignment of Chapter 11 voting rights in such agreements was not.