Climate risk is difficult for large corporations to mitigate and is increasingly a C-suite agenda item. In this article, experts from FTI Consulting’s Power, Renewables & Energy Transition (“PRET”) practice draw upon their experience in climate risk-related bankruptcy, dispute advisory, restructuring and resource strategies to summarize the regulatory, operational and financial impacts of recent extreme weather events on electric utilities. This article will discuss the implications of strengthening physical and financial asset performance in a rapidly evolving electric grid.

The opinion is In re Legarde, Case No. 22-12184, Eastern Pennsylvania Bankruptcy Court (issued September 14, 2023; Doc. 112).

Facts

Debtor claims Creditor raped her.

Then, Debtor posts stuff about Creditor on the internet.

So, Creditor sues Debtor for defamation, alleging willful and malicious conduct.

Bankruptcy Developments

Overview of this submission

From 1 September 2023, the restructuring expert will make their first appearance in Belgian restructuring law. This new court-appointed practitioner can be assigned a variety of tasks, ranging from assisting the debtor in negotiations with creditors to supervising the restructuring process and compliance with creditor information obligations.

Overview of this submission

“(b) Duties.—The [Subchapter V] trustee shall— . . . (7)facilitatethe development of a consensual plan of reorganization.”

• From 11 U.S.C § 1183(b)(7)(emphasis added).

Facilitation is, by statute, a duty of every Subchapter V trustee—something a Subchapter V trustee must do. But the nature and boundaries of the facilitation role have always been fuzzy and, therefore, misunderstood.

My purpose in this multi-part series is to provide observations on the facilitation role.

Overview of this submission

Overview of this submission

Overview of this submission

In a mass-tort bankruptcy, when 95% of 120,000 creditors vote to accept a mediated plan paying over $7 billion to creditors, shouldn’t the plan be confirmed?