The bankruptcy bar is abuzz following the Supreme Court’s recent decision in Czyzewski v. Jevic Holding Corp., 15-649, 2017 BL 89680, 85 U.S.L.W. 4115 (Sup. Ct. March 22, 2017), holding that bankruptcy courts may not approve structured dismissals that do not adhere to the Bankruptcy Code’s priority scheme.
On March 22, 2017, the Supreme Court of the United States decided Czyzewski v. Jevic Holding Corp., 580 U.S. __ (2017), holding that a bankruptcy court may not use a structured dismissal of a chapter 11 case to approve a distribution scheme that violates the absolute priority rule. In many middle-market cases, chapter 11 debtors had used this tool to get deals done and reorganize, despite their inability to confirm a chapter 11 plan.
On January 17, 2016, the United States Court of Appeals for the Second Circuit resolved a major issue that had affected the efficacy of out-of-court restructurings involving notes issued under the Trust Indenture Act when it reversed the decision of the U.S.
A debtor cannot recover sanctions or attorneys’ fees under 11 U.S.C. § 362(k) when the debtor admits to having suffered no actual damages and the filing of a motion for sanctions was not necessary to remedy a stay violation.[1] Denying the debtor’s motion for sanctions, the U.S.
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Bankruptcy lawyers across the country learned this lesson in 2015: A fine year can be a flat year.
Updates
In a pair of recent decisions,1two federal courts in the Southern District of New York have broadly interpreted Section 316(b) of the Trust Indenture Act (“TIA”)2to limit the ability of parties to strip guarantees from dissenti
Expedited discovery. No jury trial. Written proffers in place of live testimony. Welcome to the wonderfully strange world of bankruptcy litigation.
On March 26, The Honorable Andrew S. Hanen, United States District Judge for the Southern District of Texas, affirmed a Bankruptcy Court’s $5 million fee award to Baker Botts for successfully defending its fee application in the ASARCO LLC bankruptcy case.
Under Delaware law, do creditors of an insolvent limited liability company have the same standing as creditors of insolvent corporations to pursue derivative claims against directors on behalf of the LLC? Most commentators, and some courts, have assumed that the answer was “yes.” However, the Delaware Court of Chancery in CML V LLC v. Bax, No. 5373-VCL, 2010 WL 4517795 (Del. Ch. Nov. 3, 2010), determined that the plain language of the Delaware Limited Liability Company Act (the LLC Act) denies derivative standing to such creditors.