News & Analysis as of

Secured Debt Chapter 11 Commercial Bankruptcy

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

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

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

Holland & Knight LLP

Distressed Investing in Energy: Strategies and Risks in a Nutshell

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From a U.S. bankruptcy perspective, distressed debt investing is often based on two fundamental principles in the bankruptcy system: 1) a secured creditor is entitled to the value of its collateral in a given bankruptcy case...more

Kerr Russell

TGI … Bankruptcy? Another restaurant chain contemplates Chapter 11

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Chapter 11 bankruptcy continues to be a featured menu item for struggling restaurant chains. According to Bloomberg, TGI Fridays is the latest restaurant chain to contemplate a Chapter 11 bankruptcy filing. TGI Fridays is...more

Seward & Kissel LLP

Maximizing Value, Release Valve, and L.A. Law

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True Value files bankruptcy with a bid to sell to a hardware rival | CNN - On Monday, 75-year-old hardware store brand True Value filed for bankruptcy and plans to sell its entire operations to rival company Do it Best,...more

Goodwin

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

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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

Troutman Pepper Locke

Who Is the Claims Agent and What Type of Information Can I Obtain on Their Website? - Creditor’s Rights Toolkit

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Troutman Pepper's Creditor’s Rights Toolkit is a series that provides practical insights to help creditors confront the challenges of commercial bankruptcy. A claims agent is a third party retained by the debtor to take on...more

Herbert Smith Freehills Kramer

And Another Lender Blocking Provision Bites the Dust, Texas Bankruptcy Court Rules

One feature commonly seen in commercial lending transactions is a waiver of the borrower’s authority to file for bankruptcy without the consent of the lender. While such “blocking” provisions are generally upheld where the...more

Lowenstein Sandler LLP

Bankruptcy Lending Is Very Profitable

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In a historically low interest rate environment, where can you find returns in the double digits? Surprisingly, the answer is in chapter 11 bankruptcy cases as a “DIP” (debtor in possession) lender. DIP Loans Can Be...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

Jones Day

Oversecured Creditor's Right to Contractual Default-Rate Interest Allowed Under State Law

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It is generally well understood that an "oversecured" creditor is entitled to interest and, to the extent provided for under a loan agreement, related fees and charges as part of its secured claim in a bankruptcy case....more

Patterson Belknap Webb & Tyler LLP

Clarity Of Drafting And Reliance On A Spouse For Bankruptcy Protection - A Cautionary Tale

The importance of clarity in drafting agreements can never be understated. And while there are strategies available to spouses of business owners to help protect a family in bankruptcy, it is imperative to properly plan and...more

Lowenstein Sandler LLP

This is Really Funny…On Our Way to The Bankruptcy Court

A company commences a Chapter 11 bankruptcy case, obtains “debtor in possession” financing and then asks its vendors for more unsecured credit because (according to the debtor) the debtor just got lots of new financing and...more

Herbert Smith Freehills Kramer

Seventh Circuit Finds Section 546(c) Creates Federal Priority Rule for Disputes Between Reclaiming Sellers and Secured Lenders

In Whirlpool Corp. v. Wells Fargo Bank (In re hhgregg Inc.), Case No. 18-3363 (7th Cir. Feb. 11, 2020), the Seventh Circuit held that a trade creditor’s later-in-time reclamation claim was subordinate to lenders’ pre-petition...more

Carlton Fields

Big Changes for Small Business Bankruptcies

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The Small Business Reorganization Act of 2019 (SBRA) was signed into law in August 2019 and will go into effect on February 19, 2020. The goal of the SBRA is to make small business bankruptcies faster and less expensive....more

Cadwalader, Wickersham & Taft LLP

The Same, Only Better: Eighth Circuit Affirms Peabody Chapter 11 Plan Backstopped Rights Offering Despite Alleged Disparate...

On August 9, 2019, in a unanimous decision (written by a former bankruptcy judge), the Eighth Circuit Court of Appeals affirmed the confirmation of the Peabody Energy Chapter 11 plan (“Plan”) with a prominent backstopped...more

Moritt Hock & Hamroff LLP

Bankruptcy Court Determines That The Right Of A Surety To Recover Retainage In A Construction Contract Due To Equitable...

On July 2, 2019, the United States Bankruptcy Court for the Southern District of Mississippi sent a clear message to secured lenders that their security interests on a contractor's account receivables, even if perfected, will...more

King & Spalding

Energy Newsletter - July 2019

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Choose Your Own Adventure: Farmouts of International Oil & Gas Interests and the AIPN 2019 Model Form - When I teach about the Association of International Petroleum Negotiator’s (AIPN) Model International Farmout...more

Jones Day

Secured Lenders’ Interest Does Not Reach Reorganized Equity

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In In re MPM Silicones, LLC, the U.S. District Court for the Southern District of New York recently affirmed a 2014 opinion by the U.S. Bankruptcy Court for the Southern District of New York in an intercreditor dispute that...more

Herbert Smith Freehills Kramer

Fifth Circuit Holds That Creditor Lacks Constitutional Standing to Appeal

The Fifth Circuit in Nustar Energy Services, Inc. v. M/V Cosco Auckland, Case No. 17-20246 (5th Cir. Jan. 14, 2019), recently held that a subcontractor creditor lacked constitutional standing to appeal a lower court’s ruling...more

Skadden, Arps, Slate, Meagher & Flom LLP

Skadden's 2019 Insights: Second Circuit Adopts Secured Creditor Cramdown Standard Based on Market Efficiency

In 2017, the U.S. Court of Appeals for the Second Circuit held in In re MPM Silicones, LLC that the appropriate interest rate for replacement notes issued to secured creditors under a “cramdown” Chapter 11 plan must be a...more

Herbert Smith Freehills Kramer

Horizontal Gifting Upheld in Chapter 11 Plan in the Third Circuit

The Bottom Line - In Hargreaves v. Nuverra Environmental Solutions Inc. (In re Nuverra Environmental Solutions Inc.), 17-1024 (D. Del. Aug. 21, 2018), a Delaware district court upheld a bankruptcy court’s ruling that the...more

Herbert Smith Freehills Kramer

Ninth Circuit Affirms Creditors’ Ability to Buy Blocking Position of Unsecured Claims

The Ninth Circuit recently held, in In re Fagerdala USA – Lompoc, Inc., No. 16-35430, 2018 WL 2472874 (9th Cir. June 4, 2018), that a creditor may purchase just enough unsecured claims to obtain a blocking position to plan...more

Katten Muchin Rosenman LLP

Second Circuit Clarifies Interest Rate Applicable in Chapter 11 "Cramdowns"

On October 20, 2017, in In re MPM Silicones, LLC ("Momentive"), Nos. 15-1682, 15-1771, 15-1824, the Second Circuit Court of Appeals, considering the Supreme Court's opinion in Till v. SCS Credit Corp., 541 U.S. 465 (2004),...more

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