Serta’s (Un)Surprising Take on Equitable Mootness
  • The Fifth Circuit's December 2024 decision in Serta Simmons Bedding invalidated an uptier transaction in which certain lenders provided new money financing and exchanged existing debt for new super-priority debt.
  • The Fifth Circuit criticized the doctrine of equitable mootness, rejecting the argument that the doctrine barred the court's review of the bankruptcy court's plan confirmation order because the plan had already been substantially consummated and relied upon by third parties.
  • The Fifth Circuit's refusal to apply the doctrine of equitable mootness is not
Filed under:
USA, Insolvency & Restructuring, Litigation, WilmerHale
Authors:
Lauren R. Lifland , Benjamin W. Loveland , George W. Shuster, Jr.
Location:
USA
Firm:
WilmerHale