Corporate Bankruptcy

The Purdue Pharma Bankruptcy (and an NCBJ program invitation)

09/23/19

By filing a bankruptcy petition last week, Purdue Pharma is automatically protected against many types of collection and litigation by operation of federal law. Seeking to turn this already-potent shield into something more formidable, the company has asked a bankruptcy judge to enjoin state and local government actions that might qualify as police and regulatory, and to shield members of the Sackler family and other third parties f

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Purdue and the Sacklers and the Limits of Fraudulent Transfer Law

09/17/19

One of the major issues in the Purdue Pharma bankruptcy is how much the Sackler family, which (indirectly) controls Purdue will contribute in order to get releases from opioid liability. (Relatedly, are such non-debtor releases allowed outside of the asbestos context, where they are specifically authorized by statute? Second Circuit law says "sometimes.") 

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The Weinstein Company Bankruptcy: What She Said

09/09/19

Nearly a year has passed since my last Credit Slips post on The Weinstein Company bankruptcy. The case, filed March 2018, remains open. Contract disputes have dominated many if not most bankruptcy court hearings this past year.

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Do Judges Do Contract Interpretation Differently During Crisis Times?

09/01/19

Scholars of constitutional law and judicial behavior have long conjectured that judges behave differently during times of crisis.

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Ditech, Reverse Mortgages, Consumer Concerns, and Section 363(o)

08/30/19

A couple days ago, Judge Garrity Jr. of the Bankruptcy Court for the Southern District of New York issued a 132 page opinion denying confirmation of Ditech's proposed plan. Ditech, of course, is an originator and servicer of mortgages, including reverse mortgages. Its plan contemplated sales of both its forward and reverse mortgage businesses--free and clear of customers' claims and defenses.

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Private Equity's Abuse of Limited Liability

08/28/19
One of the central features of the Stop Wall Street Looting Act that was introduced by Senator Elizabeth Warren and a number of co-sponsors is a targeted rollback of limited liability.
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Alix v. McKinsey Update

08/20/19

Judge Furman has dismissed the federal RICO charges, and the case may be headed to state court. Our chances of actually finding out if McKinsey flouted rule 2014 (and § 327) are looking increasingly dim:

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Elizabeth Warren & the Dow Corning Bankruptcy: Nothing to See

07/15/19

The Washington Post has a story about Senator Elizabeth Warren’s involvement in the Dow Corning bankruptcy that implies that Senator Warren was somehow working against the interests of personal injury victims.

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Counting Healthcare Chapter 11 Filings: Are There More Than Expected?

05/23/19

This post is co-authored with my student, Kelsey Brandes, rising 3L, IU Maurer School of Law

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Plan Optionality: Extreme Edition (A Pick-Your-Own-Adventure Restructuring with Shopko)

04/17/19

I've seen some Chapter 11 plans that include some optionality, such as allowing the debtor, based on subsequent market conditions or litigation outcomes to undertake a transaction or change the way a class is paid.

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