Last week, the Coronavirus Aid, Relief, and Economic Security (CARES) Act was signed into law, implementing broad relief for individuals and businesses affected by COVID-19. One of the sections of the CARES Act receiving less attention is a temporary amendment
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.
Latest from Bankruptcy Law Insights - Page 3
COVID-19: Modified Bankruptcy Court Procedures
As the nation hunkers down to combat the novel coronavirus (COVID-19), bankruptcy courts throughout the country have moved quickly to implement procedures to preserve access to the courts while limiting in-person interaction during the crisis. Each court’s specific COVID-19 procedures…
A Season of Viral Disruption
Social distancing. Elbow bumps. Flatten the curve. These are the new phrases and behaviors we have learned to avoid exposure to the novel coronavirus (COVID-19). This epic struggle forces us to reexamine and reevaluate our daily habits, lifestyles and customs…
PG&E Bankruptcy Judge to FERC: What Part of “Exclusive” Jurisdiction Do You Not Understand?
By Ben Feder
U.S. Bankruptcy Judge Dennis Montali recently ruled in the Chapter 11 case of Pacific Gas & Electric (“PG&E”) that the Federal Energy Regulatory Commission (“FERC”) has no jurisdiction to interfere with the ability of a bankrupt power utility company to…
Paid in Full in Bankruptcy and the Unwary Creditor
If it sounds too good to be true, it probably is. But does that age-old maxim apply to a bankrupt customer offering to pay you 100% of your unsecured claim through a “prepackaged” bankruptcy or under a critical vendor program?…
Mission Products v Tempnology – Supreme Court Declines to “Vaporize” Licensee’s Rights Under Rejected Trademark License Agreement
By Ben Feder
The Supreme Court this week resolved a long-standing open issue regarding the treatment of trademark license rights in bankruptcy proceedings. The Court ruled in favor of Mission Products, a licensee under a trademark license agreement that had been rejected in…
The Devil’s Triang(ular Setoff) – Delaware Judge Rejects Corporate Parent’s Attempt to Set Off Debt Owed to Subsidiary
By Ben Feder
Few issues in bankruptcy create as much contention as disputes regarding the right of setoff. This was recently highlighted by a decision in the chapter 11 case of Orexigen Therapeutics in the District of Delaware. Judge Kevin Gross denied a…
Square Peg / Round Hole – The Supreme Court and the Constitutional Authority of U.S. Bankruptcy Courts
By Ben Feder
The judicial power of the United States is vested in courts created under Article III of the Constitution. However, Congress created the current bankruptcy court system over 40 years ago pursuant to Article I of the Constitution rather than under…
Delaware Judge Rejects Challenge to Payment of Fees for Indenture Trustee in Southeastern Grocers Chapter 11 Case
By Ben Feder
Southeastern Grocers (operator of the Winn-Dixie, Bi Lo and Harvey’s supermarket chains) recently completed a successful restructuring of its balance sheet through a “prepackaged” chapter 11 case in the District of Delaware. As part of the deal with the holders…
Supreme Court Displays More Pragmatic Approach to the Bankruptcy Code in Merit Management v. FTI Consulting
By Ben Feder
The Supreme Court’s recent decision in Merit Management Group, LP v. FTI Consulting, Inc. has appropriately drawn significant attention. The Court, by narrowing the “safe harbor” provision of Section 546(e) of the Bankruptcy Code, has opened the door for…