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Commercial Bankruptcy Breach of Contract Bankruptcy Court

White and Williams LLP

Of Whiskey and Martha’s Vineyard Realty:  Federal Receivership Ordered for Fast Growing Uncle Nearest Brand

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Companies facing financial difficulties often utilize Chapter 11 to help effectuate a restructuring or sale as part of a case filed in the United States Bankruptcy Court. In other instances, a company’s lender – impatient...more

Seward & Kissel LLP

Merits Your Attention and Real GENIUS

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Pro bull riding league files objection of Dr. Phil’s media bankruptcy saying it is owed $181 million | The Independent - The Professional Bull Riders—the largest bull-riding league in the world, which had pulled out of a...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

Morris James LLP

When Bankruptcy Meets Intellectual Property: What Every IP Holder Should Know

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Bankruptcy can disrupt even the most carefully structured business relationships, and if your company holds, licenses, or depends on intellectual property, the stakes are especially high. Understanding how bankruptcy law...more

Stark & Stark

5 Issues for Landlords During a Bankruptcy Lease Rejection

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When a commercial tenant files for bankruptcy, they have the option to assume or reject unexpired leases. A bankruptcy lease rejection is a significant action, as it communicates the debtor’s intent to hand back the space....more

Bradley Arant Boult Cummings LLP

Using Construction Lien Law to Pierce the Corporate Veil: Court Upholds Breach of Fiduciary Duty Claims Against Officers of...

The corporate veil is a fundamental concept of American jurisprudence that generally shields owners and officers from the lability of the corporation. Unless the corporate veil is pierced or otherwise avoided, owners and...more

Jones Day

Fifth Circuit Rules that Serta Simmons Uptier Violated Credit Agreement, Rejects Equitable Mootness as Bar to Review of Chapter 11...

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In In re Serta Simmons Bedding, LLC, 125 F.4th 555 (5th Cir. 2024), as amended, No. 23-20281 (5th Cir. Jan. 21, 2025), revised and superseded, No. 23-20181 (5th Cir. Feb. 14, 2025), reh'g denied, No. 23-20181 (5th Cir. Feb....more

Jones Day

New Jersey Bankruptcy Court Ruling Highlights the Utility of Chapter 15 in Enforcing Foreign Bankruptcy Court Orders in the United...

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"Comity" is a principle of jurisprudence whereby, under appropriate circumstances, one country recognizes within its borders the legislative, executive, or judicial acts of another nation. Many recent court rulings have...more

DLA Piper

Fifth Circuit Rules that Serta Simmons Bedding, LLC’s 2020 Uptier Transaction Violated Pro Rata Distribution Covenant

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In a landmark ruling, the US Court of Appeals for the Fifth Circuit ruled that a June 2020 refinancing transaction (the Uptier Transaction) entered by Serta Simmons Bedding, LLC (SSB, or the Debtor) and certain of its lenders...more

Akin Gump Strauss Hauer & Feld LLP

Serta - Fifth Circuit Decision

On December 31, 2024, the U.S. Court of Appeals for the Fifth Circuit issued its long-awaited decision regarding the permissibility of the Serta Simmons Bedding (Serta) uptier liability management exercise (the 2020 Uptier)...more

Morrison & Foerster LLP

Latest Uptier Decisions in Serta and Mitel Remind Contract Language Matters

The caselaw on “uptiers” as liability management exercises (LMEs) grew by two opinions on the last day of 2024. In Serta, the Fifth Circuit reversed the bankruptcy court’s blessing of the pre-bankruptcy uptier and...more

Holland & Knight LLP

A Tale of 2 Rulings: Serta, Mitel Cases Remind Why Contract Language Matters in Debt Documents

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A three-judge panel of the U.S. Court of Appeals for the Fifth Circuit has unanimously held that the debt exchange undertaken by Serta Simmons Bedding did not qualify as an "open market purchase" under the terms of Serta's...more

Lathrop GPM

Minnesota Bankruptcy Court Enjoins Franchisee’s Breach of Post-Termination Noncompete

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A Minnesota bankruptcy court granted Fantastic Sams summary judgment and enjoined a former franchisee from violating the post-termination noncompete in its franchise agreements after the franchisee rejected the agreements in...more

Wilson Sonsini Goodrich & Rosati

Fifth Circuit Vacates FERC Orders, Reaffirming Contract Rejection Powers in Bankruptcy

On July 19, 2022, the U.S. Court of Appeals for the Fifth Circuit added to a stream of recent decisions upholding a debtor's right to "reject" regulated energy contracts in bankruptcy, even over the objection of the Federal...more

Arnall Golden Gregory LLP

Lender Liability Is Not Dead: A Recent Case Presents a Warning for Lenders (and a Roadmap for Borrowers)

A recent decision from the U.S. Bankruptcy Court for the Northern District of Texas illustrates that aggressive lender action can lead to “lender liability” in a loan workout. Bailey Tool & Mfg. Co., et al. v. Republic Bus....more

Jones Day

Delaware Court Holds Rejection Eliminates Non-Debtor's Exclusive Right to Provide Services to the Debtor

Jones Day on

Nine Point Energy Holdings, Inc. and its affiliates (collectively, "Nine Point" or "Nine Point debtors") constituted an oil and gas production and exploration company that sought to reorganize in chapter 11 through a going...more

Proskauer Rose LLP

Nine Point Ruling Limits High Court Bankruptcy Contract Rule

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In its 2019 decision in Mission Product Holdings Inc. v. Tempnology LLC, the U.S. Supreme Court resolved a circuit split concerning the effect of contract rejection under Section 365 of the Bankruptcy Code. More specifically,...more

Farella Braun + Martel LLP

What to Do When Commercial Leases End Up in Bankruptcy

The COVID-19 pandemic is forcing many businesses to close, leaving landlords in the lurch. The COVID-19 pandemic continues to shake up the nation’s economy. Long-standing companies such as JC Penney, J. Crew, Neiman...more

Herbert Smith Freehills Kramer

Court Holds Filing of Proof of Claim Results in Waiver of Right to Jury Trial Despite Claimants’ Purported Reservation of Rights

In an opinion dated Jan. 10, 2020, Bankruptcy Judge Craig A. Gargotta of the Western District of Texas (San Antonio Division) held that a creditor who submits a proof of claim in bankruptcy waives its right to a jury trial,...more

King & Spalding

Bankruptcy Court Rules that Dedications Within Gathering Agreements "Run with the Land"

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On December 20, 2019, the Bankruptcy Court for the Southern District of Texas in Alta Mesa Holdings, LP v. Kingfisher Midstream, LLC (In re Alta Mesa Resources, Inc.) held that dedications in gathering agreements create...more

Tucker Arensberg, P.C.

Losing Your Right to Appeal Through Silence

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The Court of Appeals for the Third Circuit (Ambro, J.) issued an opinion that may have consequences far beyond the circumstances involved in the case.  The underlying dispute was a breach of contract claim which the parties...more

Patterson Belknap Webb & Tyler LLP

Another Ruling on Public Auctions Versus Private Sales Under Section 363

Two weeks ago, we discussed asset sales under Bankruptcy Code section 363. As that post noted, section 363 requires court approval for asset sales outside the ordinary course of business, with courts ensuring that sales...more

Holland & Knight LLP

FERC Asserts Its Authority to Review Rejection of Wholesale Power Agreements Days Before PG&E Files Bankruptcy

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On Jan. 25, 2019 – just days before Pacific Gas and Electric (PG&E) proposes to file its bankruptcy case – the Federal Energy Regulatory Commission (FERC) issued an order asserting its concurrent authority to approve proposed...more

Bricker Graydon LLP

Exelon files complaint and injunction motions against FirstEnergy Solutions in bankruptcy case

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On November 26, 2018, Exelon Generation Company, LLC (Exelon) filed a complaint in U.S. bankruptcy court for the Northern District of Ohio for declaratory judgment and injunctive relief, along with a motion for preliminary...more

Alston & Bird

Caesars Case Again Highlights Disallowance Risk When Distressed Claim Transfers Fail to Comply with Assignment Provisions

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Our Distressed Debt & Claims Trading Team discusses another bankruptcy case highlighting significant risks involved with failing to comply with assignment provisions and highlights the important difference between the “right”...more

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