The treatment of make-whole premiums in solvent debtor chapter 11 cases has become an important issue in recent years for corporate issuers and bondholders. This post will examine a recent decision in the Hertz case by Judge Mary Walrath of
Bankruptcy Law Insights
Commentary & Analysis on Current Events & Issues in Large & Mid-Market Chapter 11 Cases
Bankruptcy Law Insights, published by Kelley Drye & Warren LLP, focuses on legal issues arising in bankruptcy and insolvency cases. The blog covers topics such as intercompany loan disputes, creditor rights and priorities, debtor-in-possession financing, lease assumption and cure requirements under the Bankruptcy Code, intercreditor conflicts, and avoidance actions related to pre-bankruptcy transfers. It analyzes court decisions from various jurisdictions, including the Second, Ninth, and Delaware bankruptcy courts, providing insight into how bankruptcy law principles are applied in complex commercial reorganizations and creditor-debtor disputes. The blog addresses procedural and substantive aspects of chapter 11 cases, including creditor committee challenges, adequate assurance for landlords, and the treatment of secured and unsecured claims.
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Beware of Post-Confirmation Bar Dates In Chapter 11 Plans
A recent decision reminds creditors of the harsh consequences of failing to comply with a court imposed deadline for filing claims in a bankruptcy case. The U.S. Court of Appeals for the Third Circuit recently held in Ellis v. Westinghouse…
Two Important Rulings on Payment of Indenture Trustee Fees in Chapter 11 Cases
By Ben Feder & Eric R. Wilson
Two recent judicial decisions, Sanchez Energy and Tribune Media, highlight the challenges faced by indenture trustees and their professionals in chapter 11 cases where there are no recoveries to noteholders. Federal law requires that public debt be issued under…
The Devil’s Triang(ular Setoff), Revisited – Third Circuit Affirms Denial of Corporate Parent’s Attempt to Set Off Debt Owed to Subsidiary
By Ben Feder
The U.S. Court of Appeals for the Third Circuit recently became the first circuit court to address the question of whether a corporate parent can set off an obligation that it owes to a bankrupt company against a claim owed…
If the Shoe Fits . . . . Defendants in Nine West D&O Litigation Fail to Convince Judge to Dismiss Claims for Breach of Fiduciary Duty and Recovery of Fraudulent Transfers
By Ben Feder
A recent decision by Judge Jed Rakoff of the Southern District of New York highlights the risks faced by directors and officers of companies in financial distress who fail to undertake properly their duties to the company and its stakeholders.…
Commercial Landlords Take Note – COVID Relief Bill Contains Important Bankruptcy Code Amendments
By Ben Feder
The much-ballyhooed COVID relief bill passed by Congress at the end of last year, in addition to providing for $600 checks to millions of people, includes several COVID-related amendments to the U.S. Bankruptcy Code. Some of these changes will have…
New York Court of Appeals Splits From Second Circuit on Minority Bondholders’ Rights in Out of Court Restructurings
By Ben Feder
The New York Court of Appeals recently handed down an important opinion on out of court restructurings involving bond debt. In CNH Diversified Opportunities Master Account, L.P., v. Cleveland Unlimited, Inc., the Court of Appeals, in a 4–3 ruling, diverged…
Podcast: Bankruptcy During COVID-19 Pandemic
2020 is on pace to set a record as the busiest year for bankruptcy filings since the Great Recession. In this episode on Kelley Drye Legal Download podcast, Bankruptcy and Restructuring Partner Bob LeHane and Special Counsel Jennifer Raviele discuss…
COVID-19: “Avoiding” Harm to Corporate Good Samaritans
The impact of COVID-19 is being felt at all levels of the economy and will work its way through bankruptcy courts for years to come. In these early days, many creditors who are themselves suffering are providing assistance to troubled…
Third Circuit Ruling on Constitutional Authority of Bankruptcy Courts Can Provide Guidance for the Looming Wave of COVID-19 Cases
By Ben Feder
The economic fallout from the COVID-19 pandemic will leave in its wake a significant increase in commercial chapter 11 filings. Many of these cases will feature extensive litigation involving breach of contract claims, business interruption insurance disputes, and common law…