News & Analysis as of

Bankruptcy Plans

Cozen O'Connor

Democratic AGs Go For Broke on PFAS Manufacturer Bankruptcy Deal

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A group of six Democratic AGs filed an objection to a proposed bankruptcy plan for firefighting foam manufacturer Kidde-Fenwal, Inc. (“KFI”), claiming that the deal would allow KFi to avoid billions in potential liabilities...more

Cadwalader, Wickersham & Taft LLP

Johnson & Johnson’s “Red River” Bankruptcy Strategy Sinks on Third-Party Release Issues, Voting Irregularities—With Possible...

Introduction - On March 31, 2025, Judge Christopher Lopez of the U.S. Bankruptcy Court for the Southern District of Texas denied confirmation of the prepackaged Chapter 11 plan of Johnson & Johnson (“J&J”) affiliate Red...more

Seward & Kissel LLP

Cleaning House and the Dust Has Settled

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Publishers Clearing House files for bankruptcy | Law360 - Publishers Clearing House filed for Chapter 11 bankruptcy and plans to reorganize its capital structure and improve its long-term growth trajectory....more

Cadwalader, Wickersham & Taft LLP

Fifth Circuit Holds that Gatekeeping and Injunction Provisions in Bankruptcy Plans Cannot Shield Non-Debtors From Liability

On March 18, 2025, the United States Court of Appeals for the Fifth Circuit held in In re Highland Capital Mgmt., L.P., that a plan’s gatekeeping and injunction provisions could not extend to claims against most non-debtors...more

Troutman Pepper Locke

Fifth Circuit Ruling Alters Uptier Transaction Landscape

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Overview: The Fifth Circuit’s highly anticipated decision on December 31, 2024, in the Serta Simmons case has significant implications for borrowers and lenders in financial distress situations. The issue on appeal concerned...more

Polsinelli

3rd Quarter 2024 Chapter 11, Healthcare, and Real Estate Distress Indices

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Welcome to the 3rd Quarter 2024 Report for the Polsinelli | TrBK Distress Indices. The indices use filtered Chapter 11 filings as a proxy for distress in the overall U.S. economy and certain subsectors....more

International Lawyers Network

Bankruptcy, Insolvency & Rehabilitation Proceedings in Spain (Updated)

KEY FACTS OF BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS UNDER SPANISH LAW - I. INTRODUCTION -REGULATION INSOLVENCY OF OF COMPANIES AND INDIVIDUALS. We believe that the opportunity to present this article...more

Goodwin

Bankruptcy Court Rejects Settlement “Lockup” Provision

Goodwin on

In In re Gol Linhas Aéreas Inteligentes S.A. Judge Martin Glenn recently held that a “lockup” provision in certain settlement agreements was unenforceable under section 1125 of the Bankruptcy Code because settling creditors...more

Mandelbaum Barrett PC

What are Your Options if Your Veterinary Practice is Facing Financial Challenges?

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When your veterinary practice is experiencing financial difficulties, it is crucial to address those problems promptly to prevent issues from escalating. It is more effective to take proactive measures early rather than...more

Epstein Becker & Green

Authors Predict an Increase in the Use of State Court Receivership Proceedings

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In the June 2024 edition of the American Bankruptcy Institute Journal the authors of “Why State Court Receiverships Are Becoming the Norm for Smaller Companies,” write that “state court receiverships are now poised to take...more

Nelson Mullins Riley & Scarborough LLP

Purdue Pharma Plan Blocked, Supreme Court Bars Third-Party Releases in Bankruptcy

A sharply divided U.S. Supreme Court has barred the issuance of non-consensual third-party releases in Chapter 11 Plans. In a 5-4 decision, the court held that “the bankruptcy code does not authorize a release and injunction...more

Miller Canfield

In Purdue Pharma, Supreme Court Rules That Nonconsensual Releases Are A Nonstarter

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On June 27, 2024, the United States Supreme Court issued its long-awaited opinion in Harrington v. Purdue Pharma L.P., holding that the Bankruptcy Code does not permit nonconsensual releases of nondebtors. As a...more

Foley Hoag LLP

Bankruptcy Appellate Panel Blocks Cannabis Employee’s Chapter 13 Relief but Rejects Bright-Line Bar of Eligibility to be a Debtor...

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In a March 2024 decision, the U.S. Bankruptcy Appellate Panel for the First Circuit (the “Panel”) followed existing case law prohibiting debtors in businesses related to cannabis from availing themselves of federal bankruptcy...more

Troutman Pepper Locke

Can I Net Amounts Owed to the Debtor Against Amounts Owed to Me? - Creditor’s Rights Toolkit

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There are two similar but distinct mechanisms through which a creditor might net amounts owed to the debtor against amounts owed by the debtor — setoff and recoupment. Understanding the distinction between them, and how...more

BCLP

Fair's fair: the concept of fairness in Part 26A Restructuring Plans

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Since its inception under CIGA 2020, there has been no shortage of legal commentary on the effectiveness of the legislation governing Part 26A Restructuring Plans, and the ways in which the judiciary have interpreted and...more

Dinsmore & Shohl LLP

Spotlight on Financial Services- Consumer bankruptcy

Dinsmore & Shohl LLP on

Spotlight on Financial Services | Things happen very quickly in consumer bankruptcy filings. Dinsmore attorneys Edward J. Boll III, Esq. and Shannon O'Connell Egan work on a team that provides clients clear and concise...more

Nelson Mullins Riley & Scarborough LLP

In Appreciation of a Pirate

As we turn to a new year, my wife and I like to reminisce about our best days and milestones of the prior year (for 2023, it was a huge celebration with our best friends for my wife’s birthday, an epic bike ride with our kids...more

Cranfill Sumner LLP

Are Third-Party Releases Permissible Under the Bankruptcy Code?

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The legal wrangling over Purdue Pharma, L.P.’s bankruptcy plan has been splashed over the news. The plan would see Purdue Pharma become a non-profit organization, and the Sackler family that had owned the company would...more

Pillsbury Winthrop Shaw Pittman LLP

The “Insurance Neutrality” Doctrine is Heading to SCOTUS

The U.S. Supreme Court agreed to hear an appeal of the Fourth Circuit’s decision in Kaiser Gypsum regarding an insurer’s standing to object to a bankruptcy plan under the “insurance neutrality” doctrine. Under the...more

International Lawyers Network

Bankruptcy, Insolvency & Rehabilitation Proceedings in Spain (Updated)

KEY FACTS OF BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS UNDER SPANISH LAW - I. INTRODUCTION -REGULATION OF INSOLVENCY OF COMPANIES AND INDIVIDUALS. We believe that the opportunity to present this article...more

International Lawyers Network

Bankruptcy, Insolvency & Rehabilitation Proceedings in Slovakia (Updated)

KEY FACTS OF BANKRUPTCY, INSOLVENCY & REHABILITATION PROCEEDINGS UNDER SLOVAKIAN LAW - We present here the following answers to the questions mentioned in the ILN Restructuring & Insolvency Collaborative Paper which reflect...more

Fox Rothschild LLP

Can or Should You Rescue the “Friend Overboard?”

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It’s a normal Sunday night. You are settling down to watch the next episode of “The Winter King” or “The Chosen”. The phone rings, or worse yet, the person you have been living with for six months or six years says, “Can we...more

Troutman Pepper Locke

Bankruptcy in the Cannabis Space

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Though controversial, cannabis has steadily grown into a booming industry. Despite this rapid growth and the legalization of cannabis in numerous states, cannabis is still classified as a Schedule I drug under the Controlled...more

Seward & Kissel LLP

Gateway Drug? Catch 22, No & Arrow, Genesis Reaches the End, and Monster Win?

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Bankruptcy court refuses to dismiss marijuana industry debtor Chapter 11 case| Reuters - The U.S. Bankruptcy Court for the Central District of California has refused a motion to dismiss the Chapter 11 Bankruptcy case for...more

White and Williams LLP

Supreme Court Agrees to Consider Standing of Insurers in Chapter 11 Cases

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The United States Supreme Court agreed today to review a Fourth Circuit decision that denied an insurer standing to object to an asbestos producer’s Chapter 11 reorganization plan, on the basis that the insurer’s interests...more

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