On November 8, 2021, ORG GC Midco LLC of Houston, TX filed a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court for the Southern District of Texas (Case No. 21-90015).

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.

A significant rise in criminal prosecutions of company directors indicates that the Insolvency Service is raising the stakes when it comes to pursuing the most egregious cases of wrongdoing. While typically the sanctions for a rogue director would be limited to disqualification proceedings, a small but growing number of directors are finding themselves facing criminal prosecution as a result of Insolvency Service action - with 122 convictions in the year to 30 September, compared to just 40 in the same period for the previous year.

In CPS v Aquila Advisory Ltd [2021] UKSC 49, the Supreme Court has re-affirmed the existing law on illegality and attribution of directors’ wrongdoing to their companies, while providing helpful guidance and clarification on aspects of the law relating to fiduciary duty, constructive trusts, attribution, and illegality.

Fraudulent transfers and actions to avoid them are second nature to both debtor and creditor attorneys. Although the exact requirements may vary amongst state and federal laws, a typical example includes a debtor that transfers its interest in some form of property to another party with the actual intent to prevent a creditor from collecting against that property. However, as unique as the state itself, a previously seldom-used loophole to fraudulent transfer law in Texas has jumped to the forefront of restructuring strategy—the Texas Two Step.

Unless the owner of a limited liability company elects to be treated as a corporation for tax purposes, the IRS will treat a single-member LLC as a “disregarded entity” for tax purposes. As a disregarded entity, an LLC’s assets, liabilities, income and deductions are reported as belonging to the owner for tax purposes. Markell Co. v.

On October 21, 2021, the Italian Parliament has definitively approved the conversion into law of Law Decree no. 118/2021, introducing "urgent measures concerning company crises and business reorganisation, as well as further urgent measures on justice" (the "Decree").

On October 21, 2021, the Italian Parliament has definitively approved the conversion into law of Law Decree no. 118/2021, introducing "urgent measures concerning company crises and business reorganisation, as well as further urgent measures on justice" (the "Decree").

The U.S. Court of Appeals for the Sixth Circuit recently ruled in a case involving a Chapter 13 debtors’ attempt to shield contributions to a 401(k) retirement account from “projected disposable income,” therefore making such amounts inaccessible to the debtors’ creditors.^[1] For the reasons explained below, the Sixth Circuit rejected the debtors’ arguments.

Case Background

The latest insolvency statistics have now been released by the Insolvency Service and the Accountant in Bankruptcy ("AiB").

The AiB is responsible for the devolved elements of corporate insolvency, which is limited to liquidation and receivership. The Insolvency Service on the other hand records details on matters for which responsibility is retained at Westminster, being administration and CVAs.

On Wednesday, November 3, the House Judiciary Committee approved legislation on a party-line vote that could drastically reshape chapter 11 restructurings, particularly in cases involving significant tort liability. The bill, the Nondebtor Release Prohibition Act of 2021 (the “NRPA”) is sponsored by Judiciary Chairman Jerry Nadler (D-NY), Oversight Chairman Rep. Carolyn Maloney (D-NY), and Rep. David Cicilline (D-RI), who chairs the House Judiciary Subcommittee on Antitrust, Commercial and Administrative Law, which has jurisdiction over bankruptcy law-related issues.