Dust Off Your Magic Eight Ball – The Future of Nonconsensual Third-Party Releases in Light Of In Re: Purdue Pharma LP
Can a debtor include releases of non-debtor third parties in its chapter 11 plan? This divisive issue has been litigated before a number of different courts throughout the country. The Southern District of New York recently weighed in and reversed the confirmation of a plan containing third party releases. How does this recent decision impact the continued debate over third-party releases?
Shortly after the Southern District of New York ruled on third-party releases in the Purdue Pharma case, the District Court of the Eastern District of Virginia similarly overturned a plan containing third-party releases in the Ascena Retail Group bankruptcy case. How does this decision relate to the Purdue Pharma decision and what does it mean for the future of third-party releases?
For circuits that have Bankruptcy Appellate Panels, appealing parties must make a critical choice on appeal: do they elect to have their appeal heard by the Bankruptcy Appellate Panel or the District Court?
Are Debtors Fixin’ To Dance? How Debtor Companies Like Johnson & Johnson Are Beginning The Texas Two Step and How Creditors May Cut In
Some debtors are taking advantage of a Texas fraudulent transfer law that allows a company to transfer its debt to a Texas entity, which subsequently files for bankruptcy, and its assets to non-debtor entities, protecting the assets and eliminating the debt. What can creditors do about it?
Senator Elizabeth Warren recently introduced a bill that would dramatically reshape the private equity industry and create new tools and protections for creditors.
If a debtor is a single-member LLC that is treated as a disregarded entity for tax purposes, does the debtor need to file a tax return to comply with 11 U.S.C. § 521(j). If the debtor hires an accountant to prepare and file a tax return for the debtor’s single-member owner due to the debtor’s disregarded entity status, can the bankruptcy estate compensate the accountant?
Third-party releases headline news stories about major chapter 11 cases, including Purdue Pharma and the Boy Scouts of America. Will Congress consider a bill that would restrict the use of third-party releases?
Federal District Court of Minnesota Holds that Disgorgement of Chapter 11 Professional Fees Not Allowed
When a case is administratively insolvent, can a trustee force estate professionals to disgorge compensation paid pursuant to a court’s order approving such compensation?
A recent court decision, Mendelsohn v. Roslyn, provides important lessons for pleading and proving fraudulent transfer claims.
A number of lessons may be learned from representing clients in the bankruptcy filings in the retail and restaurant industries.