Supreme Court Will Review Jevic to Rule on Structured Dismissals and Gift Plans
Supreme Court Will Review Jevic to Rule on Structured Dismissals and Gift Plans The Supreme Court granted certiorari in Czyzewski v. Jevic Holding Corp. to decide whether bankruptcy courts are allowed to dismiss chapter 11 cases when property is distributed in a settlement that violat
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Bankruptcy-Proofing your Contracts?
Bankruptcy Proofing Your Contracts: A Summary of Bankruptcy Protection Devices
Bankruptcy Proofing Contracts| The never-ending quest for suppliers of credit, goods and services is to create the contracts and procedures that will insulate them from the consequences of bankruptcy fil
Read MoreJune 24, 2015
Supreme Court eliminates voiding of underwater second mortgages | June 1, 2015
In Bank of America, N.A. v. Caulkett, Case No. 13-1421 (June 1, 2015), the United States Supreme Court ruled that a second mortgage on an an “underwater” home — one with a mortgage balance exceeding its current value — cannot be voided during bankruptcy. Summary of Opinion
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Fifth Circuit: Chapter 11 Professional Liability Claims property of subsequent Chapter 7 Estate
In Cantu v. Stone (In re Cantu), Case No. 14-40762 (5th Cir. May 20, 2015), the Fifth Circuit ruled that a professional negligence claim that accrued during the pendency of the debtors’ Chapter 11 case was property of the Chapter 7 estate when the Chapter 11 case converted to Ch
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The Economist: Bankruptcy and the Economy | A Fresh Start
The Economist had an interesting article concluding that the evidence resulting from studies after the passage of BAPCPA indicate that the rules for Chapter 7 debtors might be too strict. The authors first looked at the effect on consumer bankruptcy filings (see chart). Although the c
Read MoreMay 28, 2015
Harvard Article: Effect of Allocation of Bargaining Power and the 1978 Bankruptcy Reform Act
In the new Harvard sponsored article, Financial Distress, Stock Returns, and the 1978 Bankruptcy Reform Act, forthcoming in The Review of Financial Studies, David Schoenherr, Dirk Hackbarth and Rainer Haselmann examine how bargaining power in distress affects the pricing of corporate
Read MoreMay 28, 2015
Supreme Court allows consent to Bankruptcy Court jurisdiction under Stern | May 26, 2015
In a much-anticipated decision, the Supreme Court established the parameters of consent to jurisdiction under Stern v. Marshall in Wellness Int’l Network, Ltd. v. Sharif, No. 13-935 Decided May 26, 2015.
Syllabus
Respondent Richard Sharif tried to discharge a debt he owed petiti
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Delaware Court reviews standard for derivative claims
In a detailed May 4, 2015 opinion, the Delaware Chancery Court extensively reviewed the rights of an insolvent company’s creditors to pursue derivative claims against the company’s directors
In the opinion, Vice Chancellor Laster said that “to bring a derivative action, a creditor-
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At least 10 hospitals have filed for bankruptcy in 2014
ospital bankruptcies are not rare, but many of them have ended with the hospital being sold or closed, online media reports show. At least 10 hospitals filed for bankruptcy in 2014, and at least three filed for bankruptcy this year before not-for-profit El Paso Children’s Hospi
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Fifth Circuit Affirms Absolute Priority Rule in Individual Chapter 11 Cases (May 29, 2013)
Fifth Circuit Affirms Absolute Priority Rule in Individual Chapter 11 Cases May 29, 2013 | In In re Lively, the Fifth Circuit affirmed the absolute priority rule in individual Chapter 11 Cases, adopting the “narrow view” established by other Circuits. In re Lively, 2013 WL
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