Nearly 2 million nonprofits are registered with the IRS, and the National Center of Charitable Statistics reports that about 30% of nonprofits close within 10 years. How do directors and officers of nonprofits satisfy their fiduciary obligations when a nonprofit faces economic difficulties and insolvency?
Recent decisions in the Third Circuit, Fourth Circuit and Indiana bankruptcy court appear to implement an insolvency prerequisite for a debtor to commence a case under the Bankruptcy Code. What is the basis of the insolvency prerequisite and how will courts implement this prerequisite in the future?
When drafting a pleading, it is important to remember the applicable burden of proof and which party bears that burden. This is even more important in bankruptcy proceedings, as multiple provisions of the Bankruptcy Rules and Bankruptcy Code shift the burden of proof between parties.
Minnesota recently legalized cannabis sale and use, creating a new legal industry almost overnight. Businesses in any new industry will necessarily face financial challenges, but with bankruptcy options limited for cannabis-related entities, can receivership law provide a mechanism for assisting these types of companies?
The Eighth Circuit became the most recent circuit to rule that avoidance causes of action are property of the bankruptcy estate and may be sold. How does this impact the practice of selling avoidance causes of action in both Chapter 7 and Chapter 11 cases? Does the Eighth Circuit’s decision open the door to the granting of a pre-petition security interest in avoidance causes of action?
A Florida bankruptcy court recently approved the first known Prepack Subchapter V plan. Can Prepacks work in Subchapter V? And what issues should practitioners be aware of?
The Purdue Pharma decision is just the latest case to address the constitutional and statutory authority for third-party releases in bankruptcy plans. Shortly thereafter, a New Jersey bankruptcy court dismissed LTL’s second attempt to commence a bankruptcy case using the Texas two-step. These cases and other recent decisions all focus on methods and tools to resolve complicated mass-tort matters in Chapter 11, which two professors recently argued is an appropriate tool to resolve these types of cases.
Recent cases involving structured dismissals and the dischargeability of corporate debts in Subchapter V demonstrate the evolving nature of Subchapter V and its ability to remain an efficient and cost-effective process for small businesses.
With Chapter 11 bankruptcy filings on the rise in the first six months of 2023, including Subchapter V filings, it is important to understand the advantages and challenges of Subchapter V and its stream-lined reorganization process.
Two recent bankruptcy court opinions came to different conclusions on whether the liquidating trustee is obligated to make quarterly payments post-confirmation on disbursements from the liquidating trust.