Section 105 of the U.S. Bankruptcy Code, titled “Power of Court,” is often cited and used as a “catch-all” provision when requesting certain relief or when a bankruptcy court enters an order granting (or denying) certain relief not prescribed by a particular provision of the Bankruptcy Code. That section provides that a “court may issue any order, process, or judgment that is necessary or appropriate to carry out the provisions of this title . . .

Citing historically low electricity prices and a challenging business environment for power generators, Chicago-based Exelon Corp. filed Chapter 11 bankruptcy protections for Exelon Generation Texas Power LLC (“EGTP”) — a merchant generation unit Exelon owns in Texas.  The unit will continue to own and operate the 1,265 MW Handley Generating Station in Fort Worth, Texas, in exchange for a $60 million payment to the lenders.

The Bankruptcy Protector

How realistic is it for creditors to anticipate receiving interest on their claims in bankruptcy? The answer depends on whether the claim is secured or unsecured, whether interest is claimed for the period before or after the bankruptcy filing, and whether the debtor is solvent or insolvent, to name just a few considerations.

The Bankruptcy Protector

Most bankruptcy practitioners are familiar with the intentionally broad scope of discovery under Bankruptcy Rule 2004. However, there are limits to this discovery and the “pending proceeding” rule can be a useful tool to limit the scope of discovery in the appropriate circumstances.

Bankruptcy Rule 2004

Back in July of 2015, Curtis James Jackson, III, more commonly known as 50 Cent, filed for Chapter 11 bankruptcy relief in the United States Bankruptcy Court for the District of Connecticut, a little over two months after he was ranked fourth in the list of wealthiest hip-hop artists by Forbes. Jackson’s filing came on the heels of a New York state court ruling against him for $5 million in favor of Lastonia Leviston (plus $2 million in punitive damages that were later awarded post-petition) for impermissibly posting a sex tape online.

The Bankruptcy Protector

Bankruptcy Basics for New and Non-Bankruptcy Attorneys

This entry is part of Nelson Mullins’s ongoing “Bankruptcy Basics” blog series that is intended to address foundational aspects of bankruptcy for non-bankruptcy practitioners and professionals. This entry will discuss how ipso facto clauses are treated in bankruptcy.

Imagine you are the vendor to an entity that has just filed for protection under chapter 11 of the Bankruptcy Code. Your contract documents include the following default provision:

An emerging issue facing bankruptcy courts in subchapter V — small business reorganization cases[1] — is whether the 19 categories of debts listed in section 523(a) of the Bankruptcy Code are subject to discharge in a cramdown confirmation of a corporate debtor’s plan of reorganization.

The Bankruptcy Protector

The Bankruptcy Protector

In 2019, Congress enacted the Small Business Reorganization Act. This legislation created a new type of Chapter 11 reorganization under which certain businesses with total debts less than a certain threshold (currently $7.5 million) could reorganize. These provisions, known as Subchapter V eliminated certain requirements for confirmation of a reorganization plan and include other changes to make small business reorganization quicker and less expensive.