The chapter 11 case of Energy Future Holdings (“EFH” or “Debtors”) roared back to life this month. Certain key conditions for the plan of reorganization approved last December (the “First Plan”) to become effective were not met by a deadline
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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Landlords Beware: Lease Terminations May Be Voidable In Bankruptcy
By Ben Feder
The Seventh Circuit Court of Appeals recently handed down a decision with significant implications for landlords contemplating lease termination agreements with distressed tenants. Ruling on a direct appeal in the chapter 11 case In re Great Lakes Quick Lube LP,…
Ruling on Pipeline Agreements in Sabine Chapter 11 Case Indicates Battles That Lie Ahead in Energy Company Bankruptcy Cases
By Ben Feder
U.S. Bankruptcy Judge Shelley Chapman ruled last week in the chapter 11 case of Sabine Oil & Gas that Sabine could utilize the U.S. Bankruptcy Code to “reject” certain agreements with pipeline operators. This decision will permit Sabine to walk…
Delaware Bankruptcy Judge Rejects Effort to Circumvent Supreme Court’s Asarco Decision
By Ben Feder
The Supreme Court’s decision last term in Baker Botts v. Asarco, in which the Court ruled that professionals that are paid from a debtor’s bankruptcy estate cannot be compensated for time spent defending their fee applications, continues to rankle…
Were the Energy Future Holdings and Caesars Chapter 11 Cases Just Saved by K Street Lobbyists?
By Ben Feder
Bankruptcy and restructuring professionals usually do not need to be political junkies. Amendments to the Bankruptcy Code, and the accompanying machinations of the Congressional legislative process, typically occur at a glacial pace, and such changes nearly always affect future…
GM Judge Nuances His Earlier Rulings and Sets Out Permissible Ignition Switch Lawsuits
By Ben Feder
At a hearing in late August, Judge Robert Gerber expressed his annoyance with both sides in the ongoing battle to determine whether General Motors LLC (“New GM”), the entity formed in 2009 to acquire the assets of General Motors Corporation…
Energy Future Holdings – Kicking a Very Large Can Down the Road
By Ben Feder
Energy Future Holdings (“EFH” or “Debtors”) has cleared all of the preliminary hurdles in its path as it moves towards the confirmation of its plan of reorganization (the “Plan”). Last week Judge Christopher Sontchi of the United States Bankruptcy Court…
Energy Future Holdings – Another Major Success for Chapter 11 Mediation?
By Ben Feder
Mediation has become an invaluable tool in large chapter 11 cases. Traditionally viewed as a means for resolving discrete disputes between a debtor’s estate and an adversary party, in recent years mediation in certain complex cases has evolved into…
Energy Future Holdings – More Bad News for Bondholders on Make-Whole Premiums
By Ben Feder
For the second time in the past few months, Judge Christopher Sontchi has dashed the hopes of certain creditors in the Energy Future Holdings (“EFH”) chapter 11 case that they would be paid a make-whole premium worth over $400 million…
Baker Botts v. Asarco: The Supreme Court Shows Again That It Really Doesn’t Understand Corporate Bankruptcy Cases
By Ben Feder
The Supreme Court has not handled its recent major bankruptcy decisions well. The jurisdictional confusion engendered by its 2011 decision in Stern v. Marshall was only partially clarified by this term’s opinion in Wellness International Network v. Sharif. The…