Last summer, the HHR Bankruptcy Report analyzed the Third Circuit’s ruling in Official Committee of Unsecured Creditors v. CIT Group/Business Credit Inc. (In re Jevic Holding Corp.),[1] which approved, as part of the structured dismissal of a chapter 11
Bankruptcy Report
Bankruptcy Report, published by Hughes Hubbard & Reed LLP, focuses on legal developments and case analyses related to bankruptcy and restructuring. The blog covers significant bankruptcy cases, including large corporate liquidations and reorganizations, and discusses court rulings affecting creditors, debtors, and trustees. It addresses issues such as plan confirmation, claims against directors and officers, key employee retention programs, and jurisdictional matters in bankruptcy proceedings. The blog also highlights the firm's involvement in notable bankruptcy matters and provides insights into the practical implications of bankruptcy law for financial and corporate restructuring.
Latest from Bankruptcy Report - Page 4
Fraud is Broad: SCOTUS Declines to Accept Narrow Interpretation of “Actual Fraud” in 11 U.S.C. § 532(a)(2)(A)
Last November, the HHR Bankruptcy Report reported on the Supreme Court’s grant of the petition for certiorari in Husky International Electronics, Inc. v. Ritz, a case in which the Fifth Circuit had held that “actual fraud” under section 523(a)(2)(A) of…
Risk is in the Eye of the Beholder: Court Reconsiders “Too Big to Fail” Designation of MetLife, Inc.
The determination by the Financial Stability Oversight Council (“FSOC”) that MetLife, Inc. (“MetLife”) could “pose a threat to the financial stability of the United States” was recently rescinded by the District Court for the District of Columbia.[1] Administrative law…
Chapter 11 Debtors Exempt From Their Obligations Under An Expired Collective Bargaining Agreement
The Third Circuit’s decision in In re Trump Entertainment presents interesting opportunities for employers with expired collective bargaining agreements (“CBAs”) seeking to reorganize their companies under Chapter 11 of the Bankruptcy Code. [1] In In re Trump Entertainment, the Court…
Follow the Rules: 11th Circuit Holds that District Court Must Follow Federal Rules of Bankruptcy Procedure on Rule 50(b) Motion
On April 8, 2016, the Eleventh Circuit Court of Appeals held that a district court trying a bankruptcy case arising under title 11 of the United States Code is obliged to follow the Federal Rules of Bankruptcy Procedure, instead of…
Delaware Bankruptcy Court Rejects Attempt to Indemnify Committee Counsel for Costs of Defending Fees
In In re Boomerang Tube, Inc.,[1] the United States Bankruptcy Court for the District of Delaware refused to approve a proposed retention application that would have required the bankruptcy estate to reimburse counsel for the committee of unsecured creditors…
Guidance on the Scope of Airline Debtors’ “Surrender and Return” Obligations Under Section 1110 of the Bankruptcy Code
By Erin Diers
Section 1110 of the Bankruptcy Code provides special protections to lenders and lessors that lease, finance, or conditionally sell aircraft equipment. In 2000, Congress amended section 1110 to add section 1110(c), which provides that a debtor must “immediately surrender and…
Downstream Service Providers Hit a Dry Well: Bankruptcy Court Permits Rejection of Service Contracts in Sabine Oil & Gas
A recent decision by Judge Shelley C. Chapman of the Bankruptcy Court for the Southern District of New York in the Sabine Oil & Gas chapter 11 cases[1] could have significant commercial implications on a U.S. energy sector already…
A Third Party Release in a Confirmed Plan Shields Against Unknown and Nonexistent Claims
Bankruptcy law and business expectations converged in the Residential Capital (“ResCap”) proceeding when the Bankruptcy Court confirmed that the third party release contained in ResCap’s plan of reorganization protected ResCap’s non-debtor parent from claims that were not known and did…
Recent Seventh Circuit Ruling Clarifies “Inquiry Notice” Doctrine
Bank of New York Mellon lost priority status for its claim of $312 million in the liquidation of Sentinel Management Group when the 7th Circuit held that it should have suspected Sentinel was misusing customer assets and conducted an investigation…