News Topic: Chapter 11
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Official Bankruptcy Forms Revised To Reflect April 1, 2025 Dollar Amount Adjustments Now In Effect
Jumping Up: Bankruptcy Code Dollar Amounts Will Increase On April 1, 2025
An official notice from the ... Read full article
Jumping Up: Bankruptcy Code Dollar Amounts Will Increase On April 1, 2025
An official notice from the Judicial Conference of the United States was just published announcing that certain dollar amounts in the Bankruptcy Code will be adjusted upward by 13.2004%, perhaps the largest increase to date. Inflation adjustments are ... Read full article
Don’t Pay Fact Witnesses (With a Surprising Bankruptcy Twist)
Bankruptcy Judge Calls Out Brown Rudnick’s 50% Increase In Hourly Fees
LaVie Care Centers (and 281 Related Entities) File Chapter 11 Petitions in the Northern District of Georgia
Terms of Confirmed Chapter 11 Plan Prohibit Malpractice Claim Against Debtor’s Counsel
Section 523(a) Exceptions to Discharge Do Not Apply to Subchapter V Corporate Debtors
Too Close for Comfort? LATAM Judge Upholds $1.3 Billion in Intercompany Loans
A decision earlier this year in the LATAM Airlines Group bankruptcy addressed the validity of claims arising from intercompany loans between a corporate debtor’s affiliates. Judge James L. Garrity’s opinion overruling objections to the claims provides ... Read full article
The Trap of Merchant Cash Advances and Financing
If you have a business, you have no doubt received advertisements for “ merchant cash advances ,” “merchant loans” or “merchant financing,” whether or not those specific terms are used. If in doubt, just do a search for those terms and you will get a ... Read full article
New Chapter 11 Filing Alert – Governors Gun Club Kennesaw, LLC
The Governors Gun Club of Kennesaw filed a Chapter 11 case in the Northern District of Georgia on August 17, 2022. Case No. 22-20787-jrs. The reason for the filing, as stated in pleadings filed with the Court – ... Read full article
In a Case of First Impression, 11th Circuit Rules “New Value” Can Be Both Preference Defense and Administrative Claim
In Auriga Polymers, Inc. v. PMCM2, LLC, as Liquidating Trustee , No. 20-14647, 2022 WL 2800195 (11th Cir. ... Read full article
No Honor Among Creditors: Delaware Judge Issues Important Ruling On “Uptier” Transaction
Intercreditor disputes in bankruptcy are common. Typically, however, they center around predictable disagreements between senior or junior classes of creditors such as valuation battles or lien perfection challenges. A recent decision in the Delaware ... Read full article
Second Circuit Split Resolved: No PPP Loans for Debtors in Bankruptcy
In March, the U.S. Court of Appeals for the Second Circuit joined a growing majority of courts with Springfield Hospital, Inc. v. Administrator for the U.S. ... Read full article
Preoccupied Congress Fails to Act, Sending Debt Limit Back Down to $2.7 Million and Reducing Availability of Subchapter V Protection for Small Businesses
For now, the Subchapter V debt limit is back down to $2.7 million. Overshadowed by the contentious confirmation hearings for historic Supreme Court nominee Ketanji Brown Jackson, the Senate Judiciary Committee failed to act on proposed legislation that ... Read full article
Does a Declaration of Independence Suffice? A New Study Raises Significant Questions About “Independent Directors” of Large Distressed Companies
A paper to be published soon in the University of Southern California Law Review, “ The Rise of Bankruptcy Directors ,” is sharply critical of the increased use of supposedly “independent directors” by distressed companies, often in anticipation of filing ... Read full article
$7.5 Million Increased Debt Limit For Small Business Debtors May Become Permanent
The law that temporarily increased the maximum amount of debt a company may have to qualify as a small business under Subchapter V – the cheaper, easier, and faster version of Chapter 11 – from $2.7 million to $7.5 million, is about to expire. A bill ... Read full article
Elite Bankruptcy Consulting Firms Battle It Out With Fraud and RICO Claims Related to Bankruptcy Disclosures and Lost Engagements
In Jay Alix, as assignee of AlixPartners, LLP v. ... Read full article
Driving While Unimpaired – Delaware Judge Issues Important Ruling in Hertz Chapter 11 Case on Allowance of Make-Whole Premiums, Treatment of Unimpaired Creditors, and Postpetition Interest (Part 2)
The allowance of postpetition interest in solvent debtor chapter 11 cases has become an important issue in recent years for corporate issuers, bondholders and other creditors. This post will examine a recent decision in the Hertz case by Judge Mary ... Read full article