U.S. Trustee Fee Program Ruled Unconstitutional
The Supreme Court’s Siegel opinion found the U.S. Trustee’s temporary fee increase unconstitutional. What are the implications of the opinion?
Mom-and-Pop Stopped: How Ominous Economic Factors Have Ended the Covid Recovery for U.S. Small Businesses
Small businesses face ever-increasing financial distress from a number of different factors, including price inflation, supply chain issues, and workforce changes. How widespread are these issues and what will their impact be on small businesses in the future?
Ninth Circuit BAP Weighs in on Subchapter V Eligibility
The Ninth Circuit Bankruptcy Appellate Panel recently applied a totality of the circumstances test to determine what types of activities satisfy the core or historical operations requirement for debtors that are no longer operating.
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?
Caselaw Update on Third Party Releases in Bankruptcy Plans
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?
A Critical Election: BAP or District Court?
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?
Warren Targets Private Equity
Senator Elizabeth Warren recently introduced a bill that would dramatically reshape the private equity industry and create new tools and protections for creditors.
Do Single-Member LLCs Need to File Tax Returns in Chapter 11 Cases?
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?
Is a Legislative Crackdown Coming on Third Party Releases in Bankruptcy Plans?
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?