As a general matter, governance provisions in a chapter 11 debtor’s organizational documents continue to apply postpetition. But what if those governance provisions prevent the debtor from engaging in an act expressly authorized by the Bankruptcy Code? This issue was recently addressed by the United States Bankruptcy Court for the Sou
Discounted cash flow analysis is a mainstay among the valuation methodologies used by restructuring professionals and bankruptcy courts to determine the enterprise value of a distressed business. Despite its prevalence, the United States Bankruptcy Court for the Southern District of New York recently concluded the DCF method was inappropriate for the valuation of “dry bulk” shipping companies.
The equitable theory of veil piercing, intended to serve as a rectifying mechanism against certain fraud, dishonesty or wrongdoing, is of particular import in the bankruptcy context given that it is an attractive remedy for a creditor of an insolvent company hoping to obtain a greater recovery on its claim. State law governs veil piercing claims and sets forth the hurdles a party must overcome in order to persuade the bankruptcy court that the debtor’s corporate formalities should be ignored.
The COVID-19 pandemic hit the bottom line of many businesses. Among the hardest hit industries has been the travel industry and, in particular, airlines and aviation companies. Many airlines are still struggling to generate new ticket sales as compared to pre-pandemic levels and average fares remain depressed.1 One industry source predicts that passenger numbers will not return to 2019 levels prior to 2024.2 Compounding this are increased costs of fuel (up 35% so far this year) and other expenses.3
“Smokey, this is not ‘Nam. This is [bankruptcy]. There are rules.”
– Walter Sobchak, The Big Lebowski (as modified)
Today, we follow up on our earlier post where we reviewed the United States Bankruptcy Court for the District of Delaware’s decision in Energy Future Holdings
In yesterday’s post, we published a speech in which Harvey Miller discussed how he got started practicing bankruptcy law. Today, we are publishing the text of a speech that Harvey gave in March of 2014 on the 40th anniversary of the Southeastern Bankruptcy Law Institute, at which Harvey was a frequent speaker. In this speech, Harvey looked back at the evolution of bankruptcy law over the past 50 years.
Introduction
This article has been contributed by Martin Desrosiers and Julien Morissette, partner and associate respectively, in the Insolvency & Restructuring Group of
Today’s blog article, which looks at offshore leases in the United States, is the fourth in a Weil Bankruptcy Blog series, “Drilling Down,” a series that will look at issues at the intersection of the oil and gas industry and bankruptcy law. In Part One we provided an overview of the oil and gas industry, in