News & Analysis as of

Commercial Bankruptcy Appeals

Hogan Lovells

Aggregate / Furst – Successfully disputing recognition of Restructuring Plan

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Project Fürst purported to restructure its liabilities of over EUR 1 billion, for which the developer relocated to London in order to implement a “Restructuring Plan” under the English Part 26A regime. The Restructuring Plan...more

Walkers

Court of Appeal confirms the Grand Court's power to regulate who will be the voluntary liquidator of an exempted limited...

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Walkers successfully represented the respondent limited partner in appeal proceedings filed by the General Partner (the "GP") of One Thousand & One Voices Africa Fund I, L.P. (in Voluntary Liquidation) (the "Partnership"),...more

Steptoe & Johnson PLLC

Appeals Courts Say Fraud Debts Can Survive Small Business Bankruptcies

Congress provided a streamlined mechanism for small businesses to reorganize when it enacted the Small Business Reorganization Act of 2019 and added Subchapter V to Chapter 11 of the Bankruptcy Code. Subchapter V gives small...more

Jones Day

Clarity in Singapore: How COMI Is Determined Under the UNCITRAL Model Law on Cross-Border Insolvency

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In re Fullerton Capital Ltd [2025] SGCA 11, a BVI-incorporated company entered into insolvency proceedings in the British Virgin Islands ("BVI"). The liquidators sought recognition of the BVI liquidation as a "foreign main...more

Patton Sullivan Brodehl LLP

Bankruptcy Property Deal Devolves Into Mess of Contract and Fiduciary Duty Claims

The bankruptcy process is often straightforward: the debtor’s debts are discharged, creditors take a haircut of varying degrees, and life moves on.  But some bankruptcy proceedings give birth to complicated agreements that...more

Jones Day

Business Restructuring Review Vol. 24, No. 4 | July–August 2025

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The Ad Hoc Group of Senior Secured Noteholders and DIP Lenders (the “Ad Hoc Group”) obtained a unanimous judgment in their favor in an appeal following Sanchez Energy Company’s long-running, hard-fought bankruptcy case. Once...more

McDermott Will & Schulte

Eleventh Circuit sides with Fourth, Fifth Circuits on bankruptcy discharge exception split

Addressing a split among bankruptcy courts in their interpretation of whether a corporate debtor, like an individual debtor, is subject to the exceptions to discharge outlined in 11 U.S.C. § 523(a) when confirming a...more

Jones Day

Avianca: Second Court Adopts "Billing Date" Approach to Timely Performance of Unexpired Commercial Personal Property Leases in...

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In 1984 and 1994, Congress amended the Bankruptcy Code to add protections for commercial real property and equipment lessors. Those provisions—sections 365(d)(3) and section 365(d)(5), respectively—generally require a...more

Jones Day

Purdue Prohibition of Nonconsensual Third-Party Chapter 11 Plan Releases Does Not Apply to Bankruptcy Asset Sales

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The U.S. Supreme Court's 2024 ruling in the Purdue Pharma bankruptcy cases generally prohibiting nonconsensual releases of non-debtors in chapter 11 plans sent shockwaves through the restructuring community. With one fell...more

Jones Day

Secured Lenders Win Victory in Sanchez Bankruptcy

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The Ad Hoc Group of Senior Secured Noteholders and DIP Lenders (the "Ad Hoc Group") obtained a unanimous judgment in their favor in an appeal following Sanchez Energy Company's long-running, hard-fought bankruptcy case. Once...more

Ropes & Gray LLP

Petrofac Restructuring Plans Overturned: When Considering Restructuring Surplus’ Allocation, Sharing is Caring

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In a much-anticipated judgment (Saipem SPA & Ors v Petrofac Limited & Anor [2025] EWCA Civ 821), the English Court of Appeal overturned the High Court’s sanction of Petrofac’s restructuring plans (the Plans). Petrofac was...more

A&O Shearman

Non-consensual releases in Boy Scouts chapter 11 plan survive despite Purdue Pharma ruling

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The Supreme Court’s landmark 2024 Purdue Pharma decision altered the landscape for bankruptcy releases and, in the process, put the resolutions of several other pending mass tort chapter 11 cases in question. A recent...more

Latham & Watkins LLP

Redressing the Balance of Power in Restructuring Plans Petrofac in the Court of Appeal

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The Court of Appeal has reversed the sanction of the Petrofac group’s restructuring plans and allowed the appeal of two dissenting unsecured creditors.Re Petrofac Limited and Petrofac International (UAE) LLC [2025] EWCA Civ...more

Latham & Watkins LLP

Can Lenders Stay in the Driver’s Seat? The Enforceability of Make-Whole Premiums in Bankruptcy

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Borrowers and lenders must both be aware of the risks relating to uncertainty regarding make-whole premiums in bankruptcy. The enforceability of “make-whole” premiums in bankruptcy has become a hotly contested issue in...more

Goulston & Storrs PC

Rethinking Liability Management in Club Deals and Direct Lending: Lessons from the Fifth Circuit’s Serta Ruling and Beyond

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On December 31, 2024, the Fifth Circuit Court of Appeals (the “Court”) struck down the controversial 2020 “uptier transaction” executed by Serta Simmons Bedding (“Serta”). The Serta case and several other state court and...more

Goldberg Segalla

Debtor’s Injunction Language to Bar Future Claimants with Latent Injuries Deemed Unenforceable on Appeal

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Court: United States Bankruptcy Appellate Panel for the Ninth Circuit - Debtor Ben Nye Co. Inc., a manufacturer and distributer of theatrical makeup, filed for subchapter V bankruptcy in March 2024. Its proposed bar date...more

Cranfill Sumner LLP

NC Court of Appeals Denies Motion to Add Self-Insurance Association in Asbestos Exposure Case

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In a published decision with a dissent, the NC Court of Appeals denied the Plaintiff’s motion to add North Carolina Self-Insurance Security Association as a party to the claim....more

Akin Gump Strauss Hauer & Feld LLP

Case Comment: Petrofac Restructuring Plans

The Petrofac group, a leading international service provider to the energy and infrastructure industries, has successfully obtained an order sanctioning two inter-conditional restructuring plans (Plans). We explore here the...more

Mayer Brown

Serta and Mitel: The Latest Major Court Decisions on Uptier Transactions

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Summary: On December 31, 2024, two major appellate court decisions addressed the legality of uptier financing transactions—one involving Serta Simmons Bedding (“Serta”) and the other Mitel Networks Corporation (“Mitel”). Both...more

Patterson Belknap Webb & Tyler LLP

The Divestiture Rule Explained: A Judge-Made Doctrine Doesn’t Necessarily Deprive a Lower Court of Ongoing Subject Matter...

The filing of an appeal in federal court generally divests the lower court of jurisdiction. This rule of appellate jurisdiction applies both to appeals from a district court to a court of appeals and from a bankruptcy court...more

Jones Day

Disappointed Bidder in Bankruptcy Asset Sales Waived Argument that Buyers Did Not Act in Good Faith by First Raising It on Appeal

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The finality of asset sales in bankruptcy is an indispensable feature of U.S. bankruptcy law designed to maximize the value of a bankruptcy estate as expeditiously as possible for the benefit of all stakeholders. To promote...more

Troutman Pepper Locke

Navigating Jurisdictional Pitfalls: Lessons From Global One Media, Inc. v. Newtek Small Business Finance, LLC on Lien Filing...

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The Ninth Circuit Bankruptcy Appellate panel recently reaffirmed the longstanding principle that a UCC-1 financing statement securing personal property must be filed at the debtor’s location. In a recent case, the lender did...more

Allen Matkins

Complaint Need Not Allege Fraud, Misrepresentation, Or Deceit To Be "Based Upon" A Corporation’s “Fraud, Misrepresentation or...

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In 2002, the California Legislature created the Victims of Corporate Fraud Compensation Fund as part of the Corporate Disclosure Act. There are a number of conditions that must be met to receive a payout from the fund.  One...more

WilmerHale

Serta’s (Un)Surprising Take on Equitable Mootness

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In its New Year’s Eve decision in Serta Simmons Bedding, the Fifth Circuit underscored the importance of drafting debt documents with clarity and precision and cautioned against borrowers’ reliance on ambiguous language to...more

Rivkin Radler LLP

2nd Circuit Refuses to Enforce Insurance Policy’s Arbitration Provision

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A Second Circuit U.S. Court of Appeals decision refused an attempt to expand the scope of an insurance policy’s arbitration provision, creating the need for extra caution when interpreting policies. In Ehrenberg v. Allied...more

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