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Too Much of a Good Thing: Congress Allows Increased Subchapter 5 Eligibility Level to Expire

Over the past few years, one of the universally celebrated success stories in the bankruptcy and restructuring world has been Subchapter V of the Bankruptcy Code. Created by the Small Business Reorganization Act of 2019 (the...more

The Double Dip: Guacamole Faux Pas ‎or Liability Management ‎Technique?

Jerry Seinfeld and Larry David taught us that you can’t double dip a chip—“it’s like putting your whole mouth right in the dip.” However, the credit markets have recently been focused on a different type of double dip, one...more

1/3/2024  /  Borrowers , Creditors , Debtors , Insolvency , Lenders

Last Dance? Third Circuit Shuts Down ‎J&J Affiliate’s Chapter 11 Case Predicated on “Texas Two-Step”‎

At the end of January, the Third Circuit Court of Appeals issued its long-awaited decision in the Chapter 11 bankruptcy case of LTL Management LLC (“LTL”), an affiliate of Johnson & Johnson (“J&J”). In a decision authored by...more

All for One? Debt Co-Investors Need ‎Not Behave as Musketeers

On July 6, 2022, the US Bankruptcy Court for the District of Delaware delivered an opinion recognizing the effectiveness of an “uptiering” transaction—whereby a subset of an issuer’s existing noteholders are issued new notes...more

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