FLYi, Inc — important application of Owens-Corning standard for substantive consolidation by Delaware bankruptcy court

On March 15, 2007, with Jones Day’s assistance as bankruptcy counsel, FLYi, Inc. (“FLYi”), Independence Air, Inc. (“Independence”) and their affiliated debtors (collectively, the “Debtors”) obtained confirmation of their chapter 11 plan under the “cramdown” provisions of the Bankruptcy Code. The plan, which become effective on March 30, 2007, will distribute approximately $150 million to unsecured creditors. In ruling on confirmation of the plan, the U.S.

Filed under:
USA, Insolvency & Restructuring, Litigation, Jones Day, Bankruptcy, Debtor, Unsecured debt, Federal Reporter, Hedge funds, Liquidation, Unfair competition, Holding company, United Airlines, United States bankruptcy court, Third Circuit, US District Court for District of Delaware
Location:
USA
Firm:
Jones Day
Are attorney’s fees recoverable in state actions for work done in bankruptcy court?

Under the “American Rule” concerning the recovery of attorney’s fees in pursuing breach of contract litigation, the prevailing party is awarded fees if the contract or an applicable statute provides for such recovery. Some states also allow a judgment creditor to recover fees incurred in enforcing the judgment, if the judgment was based on a contract or statute that authorized fees in the original litigation. See, e.g., California Code of Civil Procedure § 685.040.

Filed under:
USA, California, Insolvency & Restructuring, Litigation, Reed Smith LLP, Bankruptcy, Costs in English law, Injunction, Breach of contract, False advertising, Unfair competition, United States bankruptcy court, California courts of appeal
Authors:
Mike C. Buckley
Location:
USA
Firm:
Reed Smith LLP