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Avoiding Collateral Damage: Lessons of Lehman [Part II]

In light of the banking failures of Silicon Valley Bank, Signature Bank and First Republic (as well as Credit Suisse), this summer, the Federal Reserve and the FDIC proposed guidance and rules for larger banks to (i) develop...more

Crypto Punked? Industry Bankruptcies Rattle Markets and Expose Major Sector Vulnerabilities

The crypto winter is starting to look more like a crypto ice age. In addition to hundreds of billions of dollars in lost market value, the crypto industry has seen major industry players seek protection in bankruptcy court,...more

Second Circuit Opens Door to Refunds of UST Fees Paid in Chapter 11 Cases

On November 10, 2022, the US Court of Appeals for the Second Circuit directed the US Bankruptcy Court for the District of Connecticut to order a refund of fees paid by a chapter 11 debtor to the Office of the US Trustee...more

Amendment to Subchapter V of Chapter 11 Clarifies Affiliates' Eligibility for Streamlined Restructuring Process

On June 21, 2022, President Biden signed the Bankruptcy Threshold Adjustment and Technical Corrections Act into law. As we reported here, the Bankruptcy Corrections Act revived the $7.5 million eligibility threshold for...more

Illinois Bankruptcy Court: Preliminary Distributions Lock Subchapter V Plan 

In an issue of first impression for the jurisdiction, the Bankruptcy Court for the Northern District of Illinois has ruled that a subchapter V debtor “substantially consummated” its plan by paying less than $1,500 in...more

Bankruptcy Legislation Update: Biden Signs Bill Preserving $7.5 Million Eligibility Threshold for Subchapter V

The President signed legislation raising the eligible debt ceiling for Subchapter V of Chapter 11 to $7,500,000. Small businesses with up to $7,500,000 in noncontingent, liquidated debts are eligible for relief under...more

Bankruptcy Legislation Update: House Passes Bill Preserving $7.5 Million Eligibility Threshold for Subchapter V; Legislation Ready...

The House has passed a bill that will now go to the President to sign into law that raises the eligible debt ceiling for Subchapter V of Chapter 11 to $7,500,000. Small businesses with up to $7,500,000 in noncontingent,...more

Bankruptcy Legislation Update: Senate Passes Bill Preserving $7.5 Million Eligibility Threshold for Subchapter V

The Senate has passed a bill by unanimous consent to extend the heightened debt ceiling for Subchapter V of Chapter 11. If passed by the House and signed into law, small business borrowers with up to $7,500,000 in...more

SDNY Allows Nine West LBO Securities Litigation to Move Forward

In early December, the United States District Court for the Southern District of New York denied, in part, a motion to dismiss claims of breach of fiduciary duty and recovery of fraudulent conveyances brought against former...more

COVID-19 Stimulus Legislation Aims to Make Chapter 11 Easier for Many More Small Businesses

On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief and Economic Security Act (CARES Act), a Senate bill passed just days earlier in response to the public health crisis that has emerged from the...more

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