Bankruptcy Litigation News & Updates

The Snowball effect, the Domino effect, and even the Streisand effect all demonstrate the accretive impact of small changes.  Though without a catchy metaphor, the tendency of Circuit splits to attract new and deviating opinions fits the concept—particularly as applied to the deepening rift between Circuits over the constitutionality of United States Trustee fee increases

The In re Jevic Holding Corp. chapter 11 case continues to make news.  The case is likely best remembered for the 2017 Supreme Court decision holding that the distribution scheme in a structured dismissal of a Chapter 11 case cannot violate the absolute priority rule.  The case has since been converted to Chapter 7, and

Secured creditors have many choices when it comes to how to file a proof of claim in bankruptcies. Those choices should be weighed carefully, however, because certain choices can have important unexpected consequences that outlive the bankruptcy and affect a secured creditor’s subsequent rights in state court actions.

When a debtor files a bankruptcy in

The “COVID-19 Bankruptcy Relief Extension Act of 2021” was signed into law by President Biden on March 27, 2021, extending the key provisions of the COVID-19 Bankruptcy Relief Act which was enacted in the CARES Act for another year.

Section 1113 of the CARES Act, which temporarily amended bankruptcy law to assist individuals and businesses

Interplay Between Subordination Agreements and Chapter 11 Cramdown Plans

The Bankruptcy Code provides that subordination agreements are enforceable in bankruptcy to the same extent that such agreements are enforceable under non-bankruptcy law.  11 U.S.C. § 510(a).  However, Section 1129(b)(1) of the Bankruptcy Code permits a Chapter 11 plan to be confirmed subject to certain requirements

In proceedings arising out of the Tribune Company chapter 11 bankruptcy and a decision in which the United States Court of Appeals for the Second Circuit sustained the dismissal of billions of dollars in alleged fraudulent transfer claims related to a failed leveraged buyout transaction (LBO), the U.S. Supreme Court has requested input from the

In an appeal arising out of a Ponzi scheme by the principals of two entities, the receiver sought to recover funds from a bank allegedly diverted as fraudulent transfers under the Florida Uniform Fraudulent Transfer Act (the “FUFTA”) and to collect damages for alleged aiding and abetting of other torts.  See Isaiah v. JPMorgan Chase

Earlier this week, the United States Supreme Court issued an opinion regarding appeals of orders denying relief from the automatic stay.  Generally, the automatic stay (section 362 of the Bankruptcy Code) prevents creditors from taking action against the debtor’s assets outside the bankruptcy process. In order to continue debt collection efforts, creditors can file a

In October of this year, Sears Holdings Corp and affiliated Debtors filed a Chapter 11 case in the U.S. Bankruptcy Court for the Southern District of New York in a case pending before Judge Drain. Since that time, the company has been reducing its debt and its physical footprint by closing stores.  After the bankruptcy