News & Analysis as of

Chapter 11 Bankruptcy Plans

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

Polsinelli

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

Polsinelli on

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

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

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

Miller Canfield on

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...

Foley Hoag LLP on

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

Troutman Pepper Locke on

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

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

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

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

Goodwin

Till We Meet Again: Eighth Circuit Weighs in on Appropriate Interest Rate in a Cramdown

Goodwin on

Much has been written about how to calculate the appropriate interest rate for the deferred cash payments a debtor may propose to pay to a rejecting secured creditor under a “cramdown” Chapter 11 plan to meet the “fair and...more

Tucker Arensberg, P.C.

Will the Acceptance of the Appeal in Purdue Pharma by the U.S. Supreme Court Affect Johnson & Johnson?

Tucker Arensberg, P.C. on

Now that the United States Supreme Court has agreed to expeditiously hear the U.S. Trustee’s appeal of the plan confirmation and settlement in Purdue Pharma, lawyers following the LTL Management LLC bankruptcy case, version...more

Nelson Mullins Riley & Scarborough LLP

Bankruptcy 101: Bankruptcy Cases, Adversary Proceedings, and Contested Matters - Bankruptcy Basics for New and Non-Bankruptcy...

This entry is part of Nelson Mullins’s ongoing “Bankruptcy Basics” blog series that is intended to address foundational aspects of bankruptcy for new and non-bankruptcy practitioners and professionals. This entry will discuss...more

Nelson Mullins Riley & Scarborough LLP

Buyer Beware: The Risk of Ignoring Known Defects in Title Cannot be Cured by “Free and Clear” Bankruptcy Sale

Envision a scenario in which you purchased a right of first refusal for a parcel of real estate. That right, as bargained for, would let you purchase the parcel if it was put up for sale by matching any competing bidder’s...more

Miller Canfield

What Do You Do If a Debtor Defaults on Its Confirmed Bankruptcy Plan?

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A recent opinion from the Michigan Court of Appeals explained that when a debtor defaults under a confirmed chapter 11 bankruptcy plan, a creditor can enforce its rights in state court, and perhaps also in the bankruptcy...more

Vinson & Elkins LLP

District Court in Virginia Continues Questioning of Third-Party Releases – At Least in the Absence of Detailed Findings of...

Vinson & Elkins LLP on

Judge Colleen McMahon recently opined in Purdue1 that “the lower courts desperately need a clear answer” as to the validity of third-party releases. On January 13, 2022, the United States District Court for the Eastern...more

Royer Cooper Cohen Braunfeld LLC

Maintaining Control Over Your Bankruptcy

A recent ruling by Judge Glenn in the Bankruptcy Court for the Southern District of New York shows that notwithstanding the U.S. Supreme Court’s In re Jevic decision, structured dismissals of chapter 11 cases are still...more

Dorsey & Whitney LLP

Bankruptcy Topics In Distressed Real Estate

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Bankruptcy cases involving commercial real estate present a multitude of problems. Those problems typically arise in the context of voluntary cases filed under chapter 11 of the Bankruptcy Code, 11 U.S.C. §§ 101-1532...more

Dorsey & Whitney LLP

Paper Source Bankruptcy Offers Lessons for Vendors Playing Their Cards

Dorsey & Whitney LLP on

On March 2, 2021, stationery and gift retailer Paper Source filed for chapter 11 bankruptcy, stating in court filings that effects of the COVID-19 pandemic damaged its finances and operations. Paper Source stated that in...more

Jones Day

Should Equitable Mootness Bar Appeals Only of Chapter 11 Plan Confirmation Orders?

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The court-fashioned doctrine of "equitable mootness" has traditionally been invoked to bar appeals of orders confirming "substantially consummated" chapter 11 plans. Some appellate courts, however, have applied it to bar...more

Bailey & Glasser, LLP

Third Circuit Signals Possible Limitations On Setoff Rights

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Parties to corporate transactions often rely on contractual setoff rights to help ensure that they can be paid or at least limit the amounts lost if the counterparty fails to pay.  While the Bankruptcy Code generally protects...more

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