Recent Developments in Bankruptcy Law

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

Fox Rothschild Washington D.C. associate, Diana Lyn Curtis McGraw, published an article in TMA’s Journal of Corporate Renewal (April 2021) entitled “The Role of the Trustee in Chapter V Cases.  This article outlines some of the most important duties of a Subchapter V trustee and the trustee’s ability to retain counsel and other restructuring professionals.

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

Somewhere in our rough memories of high school science, we should recall the general principle that a gas will always expand to fill a given void.  Although the Bankruptcy Code diverges markedly from scientific principles, newly enacted provisions in Subchapter V of Chapter 11 of the Bankruptcy Code suggest some similarity.  In In re Dani

The Federal Rules of Bankruptcy Procedure (the “Bankruptcy Rules”) govern procedure in cases arising under title 11 of the United States Code. Over time, the Bankruptcy Rules have been amended, and were most recently amended in 2020. The 2020 amendments to the Bankruptcy Rules took effect on December 1, 2020, and govern all proceedings commenced

Although enacted before the COVID-19 pandemic, the new Subchapter V of Chapter 11 of the Bankruptcy Code seems almost prescient now and could be a game-changer for small businesses looking to restructure.  Indeed, the Subchapter V provisions became effective on February 19, 2020, not a moment too soon given that the pandemic gripped the country

In July 2020, the Court in In re Generation Res. Holding Co., LLC, 964 F.3d 958, 962 (10th Cir. 2020), held that subsequent transferees do not qualify as immediate or mediate transferees under Section 550(a)(2) because they did not possess the initial property transferred, and only possessed the proceeds of the transfer. In Generation