Unsecured Creditors and Postpetition Interest – the EFH Court’s Analysis

Generally when parties to a dispute work out a settlement they can breathe a sigh of relief and put their differences behind them.  OK – it’s a little more complicated than that when one of the parties is a chapter 11 debtor that must seek relief from the bankruptcy court to approve the settlement.  But what if a party objects?  Things get a bit more complicated.  And what if the objecting party has no apparent pecuniary interest at stake?  In that scenario, the settling parties can rest a little easier as the bankruptcy court in 

In yesterday’s edition of the Weil Bankruptcy Blog, we introduced 

After a busy term last Spring that saw the United States Supreme Court issue decisions in Bank of America, N.A. v. Caulkett and Baker Botts v.

Section 303(b)(1) of the Bankruptcy Code allows an involuntary petition to be filed by three or more creditors who hold non-contingent claims totaling at least $15,325 more than the liens on the debtor’s property.  Those creditors then must prove that the debtor was generally not paying its debts as they came due within the guidelines

“So many years we’ve tried
To keep our love alive
But baby it ain’t over ’til it’s over”

-Lenny Kravitz – “It Ain’t Over ’Til It’s Over”

Today we write on relatively recent 

On July 13, 2015, the Bankruptcy Court for the Southern District of New York 

Scheme Hot Topics Bulletin: Part III Schemes vs Chapter 11 June 2015 Using the key features of our case study below, we compare schemes and Chapter 11 proceedings on the following grounds: ■ jurisdiction (filing requirements and crossborder recognition); ■ moratorium; ■ scope, i.e. which creditors can be included in (or excluded from) the relevant proceedings; ■ control; ■ new money; ■ cramdown; ■ valuation; ■ third party releases; ■ disclosure; ■ market impact; ■ timing and costs; and ■ special Chapter 11 rules on oil & gas interests.

Overview