Earlier this year, Mexican airline, Grupo Aeromexico, S.A.B. de C.V. (together with its affiliates, the “Debtors”) announced that their creditor body had overwhelmingly voted to approve their proposed Chapter 11 restructuring plan (the “Plan”) save for one class of unsecured
Restructuring Matters
Restructuring Matters, published by Crowell & Moring LLP, focuses on legal issues related to corporate restructuring, bankruptcy, and insolvency. The blog covers topics such as personal guarantees in lending, regulatory changes affecting insolvency practitioners, significant bankruptcy cases and rulings, liability management exercises, and enforcement of laws impacting distressed companies. It also addresses sector-specific challenges, including retail bankruptcies and supply chain issues, as well as cross-border insolvency matters like Chapter 15 eligibility. The content provides updates on legal developments, court decisions, and regulatory frameworks that influence restructuring strategies and creditor protections.
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Another Blow: Third Party Releases Under Attack
The practice of granting third party releases in bankruptcy was recently dealt another blow by the District Court for the Eastern District of Virginia. In Patterson et. al. v. Mahwah Bergen Retail Group, Inc., Civil No. 3:21cv167 (DJN), the District…
Hertz: The “Solvent Debtor Exception” Loses Some Traction
The Bankruptcy Court for the District of Delaware recently expressed its view regarding the reach of the “solvent debtor exception” in In re The Hertz Corp., et al. The solvent debtor exception is an equitable doctrine which supports the proposition…
UCC Financing Statements and Debtor Name Errors: The Litigation Continues
By Scott Lessne
Article 9 of the Uniform Commercial Code, adopted in all fifty states plus the District of Columbia with relatively few variations, sets out, among other things, the rules to be followed when obtaining a security interest in personal property collateral…
Lenders Beware: The Supreme Court’s Ruling in Fulton May Not Be the Final Word on Violations of the Automatic Stay
In its much-discussed decision, City of Chicago v. Fulton, 141 S. Ct. 585 (2020), the Supreme Court ruled that the City of Chicago (“City”) was not in violation of Section 362(a)(3) of the Bankruptcy Code for failing to release an…
Corporate Directors’ Exposure to Breach of Fiduciary Duty Claims
Periodically courts remind corporate directors that their decisions to act or to refrain from acting during the course of managing the affairs of a corporation are not without limitations. It is well established that corporate directors owe fiduciary duties, and…
Further Support for Expedited Confirmations with Carlson Travel
With the confirmation of Carlson Travel’s plan of reorganization within 24 hours from the company’s filing, expedited confirmations took another step toward normalization. Carlson Travel (better known as Carlson Wagonlit Travel) together with 37 affiliated entities filed bankruptcy in the…
Energy Crisis Looms for Business
Hot on the heels of crises driven by shortages of carbon dioxide and HGV drivers, it is perhaps the ultimate irony that – in the month before COP 26 in Glasgow – the UK and to a lesser extent much…
Venue Reform May Be Gaining Momentum
On the heels of this month’s confirmation of Purdue Pharma’s controversial plan of reorganization which contained third-party releases in favor of the Sackler family members, a new bill has been introduced in the Senate seeking an end to what some…
District Court Considers “Overarching Transfer” When Applying Bankruptcy Safe Harbor
The District Court for the Southern District of New York recently issued an important decision that provides further support for a holistic analysis when applying the Bankruptcy Code’s “safe harbors.” In Mark Holliday, the Liquidating Trustee of the BosGen Liquidating…