Last week, the Trump administration and Congress proposed spending cuts that if enacted are likely to affect federally funded health insurance programs such as Medicaid and the Affordable Care Act
Continue Reading Trump Administration’s Proposed Health Care Cuts Pose Risks to Distressed ProvidersAs previously discussed and anticipated in prior blog posts,[1] the United States Supreme Court’s decision in Siegel v. Fitzgerald, 596 U.S. 464, 142 S.Ct. 1770, 213 L.Ed.2d 39
Continue Reading The Circuit City Landmine Redux, the Final Word (Office of the United States Trustee v. John Q. Hammons Fall 2006, LLC): Supreme Court Holds that Chapter 11 Debtors Do Not Get a Refund on U.S. Trustee Quarterly Fees Under Unconstitutional Fee IncreaseRight now, a business with less than $7.5 million in debt can file an easier, cheaper, and more efficient bankruptcy than a traditional Chapter 11. That privilege will soon be
Continue Reading The More Things Change, the More They Stay the Same? Survival of Small Businesses Again Dependent on Action From CongressAs many bankruptcy practitioners are aware, there is a circuit court split with respect to the allowability of non-consensual third-party releases. Notably, in the Purdue Pharma case, the United States
Continue Reading Are Gate-keeper Provisions in Chapter 11 Confirmation Orders a Stopgap for Nonconsensual Third-Party Releases?As bankruptcy attorneys who often defend clients in preference avoidance actions, we were pleased with the 547(b) amendments, effective as of February 20, 2020, requiring a trustee to conduct some
Continue Reading What level of “reasonable due diligence” is actually required under Section 547(b) and does it really matter?
On Friday September 28, 2023, the U.S. Supreme Court agreed to review the United States Trustee’s appeal from the Tenth Circuit Court of Appeal’s holding that the Office of the
Continue Reading The Post-Siegel Fallout Continues: The Supreme Court Has Accepted Certiorari to Determine Whether a Refund of Overpayments Made by Chapter 11 Debtors in Accordance with the Unconstitutional Fee Hike Under the United States Trustee Program is an Appropriate RemedyOn April 19, 2023, Justice Ketanji Brown Jackson, writing for a unanimous Court in MOAC Mall Holdings LLC v. Transform Holdco LLC et.al., 598 U.S. ___ 143 S. Ct.
Continue Reading How Safe Is Your 363(m) Sale? The Supreme Court’s Invalidation of Statutory Mootness is a Risk to Asset Purchasers Seeking Certainty
Cannabis clients are often surprised to learn that the bankruptcy courts are unavailable to liquidate or reorganize most cannabis businesses. Indeed, the Office of the United States Trustee (the “UST”)
Continue Reading In re The Hacienda Company, LLC – a Flicker of Hope for Distressed Cannabis Companies: Bankruptcy May be Available to Liquidate Assets of Non-Operating Cannabis CompaniesIn a 2021 opinion in In re Paragon Offshore PLC, 629 B.R. 227 (Bankr. D. Del. 2021) (“Paragon Offshore”), Judge Sontchi of the United States Bankruptcy Court for
Continue Reading Do Liquidating Trusts Have to Pay Quarterly US Trustee Fees?Effective January 1, 2023, the procedures for filing complex cases in the Southern District of Texas changed. The courts have made the procedures specific and detailed. Below are some of
Continue Reading New Complex Case Procedures in the Southern District of Texas