On July 8, 2021, Pipeline Foods, LLC, along with several affiliates, which operate a Minnesota-based organic food supply chain company, filed a petition under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 21-11002). The company estimates $100 to $500 million in assets and liabilities.

On July 2, 2021, Something Sweet, Inc., a New Haven, Connecticut-based bakery that “provides high quality pies and cakes to the largest retailers in the country,” filed a petition under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 21-10993). The company estimates $10 to $50 million in assets and liabilities.

In a previous article, I discussed the potential impacts of a then-forthcoming decision in the case of In re United Cannabis Corporation, which had the potential to widen access to federal bankruptcy relief to cannabis-adjacent hemp businesses.

Late on July 6, 2021, MatlinPatterson Global Opportunities Partners II L.P., along with several affiliates, filed a petition under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of New York (Lead Case No. 21-11255).

During the second trimester of 2021, 9 petitions in bankruptcy were filed, notified, and registered on the Federal Insolvency Institute's records.

ABC Aerolíneas, S. A. de C. V. (Interjet).

Although Interjet announced its plan to file a voluntary petition in bankruptcy, a creditor filed an involuntary petition against the airline before a District Court in Mexico City. The involuntary petition was admitted on Abril 24, 2021 and Interjet appeared voluntarily to be served to process on June 21, 2021.

Overview

This article looks at how to deal with bankrupt Claimants and the effect that their bankruptcy has on both pre and post litigated claims, where the Credit Hire Organisations (CHOs) may continue to pursue the claim. We have focused on the law surrounding bankruptcy including what types of claim remain vested in a Claimant as well as how to deal with such a claim and issues that may arise.

The liquidity-fueled lull in restructuring activity provides both an interesting historical echo of the late 1990s and a useful opportunity for market participants to take note of a deceptively interesting opinion in Giuliano ex rel. Consolidated Bedding, Inc. v. L&P Financial Services Co. (In re Consolidated Bedding, Inc.), Case No. 19-50727, 2021 WL 2638594 (Bankr. D. Del. June 25, 2021) (Shannon, J.).

On June 25, 2021, Inversiones CG Financial Chile Dos S.P.A. and certain affiliates, which manage investments in mainly Chilean financial institutions, filed a petition under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the District of Delaware (Case No. 21-10968). The company estimates $500 million to $1 billion in assets and $1 billion to $10 billion in liabilities.

Creditors can set aside fraudulent conveyances of their debtors by a revocatory action, also known as actio pauliana. This action is not the same if the debtor is bankrupt. There is the non-bankruptcy actio pauliana and the bankruptcy actio pauliana. Civil codes govern the former and the Bankruptcy Law covers the latter. Creditors under the non-bankruptcy actio pauliana have fewer rights and benefits than those under the bankruptcy actio pauliana.