Restructuring

David Flannery has joined GSO Capital Partners, Blackstone’s global credit investment platform, as a senior managing director. Mr. Flannery, who will be based in New York, most recently worked with Anchorage Capital Group. He has experience in illiquid credit opportunities and collateralized loan obligations, or CLOs.

Six years ago, in an otherwise unremarkable opinion, a court in Texas undermined one of the fundamental concepts embedded in the statute of frauds and deprived unsecured creditors of millions of dollars in value that would otherwise have been available to them. Nobody noticed—until now.

Republic Airways Holdings Inc. on Thursday will ask a Manhattan judge for permission to use a hotly contested bankruptcy loan from Delta Air Lines as well as seek approval for a settlement with the airline.

Thursday’s hearing, before Judge Sean Lane, was pushed back by a week after a group of shareholders expected to go empty-handed in the restructuring sought more time to review the airliner’s recently struck deal with Delta.

One of the most contentious parts of bankruptcy is determining the value of the company filing for chapter 11. In fact, the valuation process was a major focus of the American Bankruptcy Institute’s Commission to Study the Reform of Chapter 11, and many of the commission’s proposals were based on the perception that bankruptcy valuations are systematically skewed toward undervaluing debtors.

[wsj-responsive-image P="http://si.wsj.net/public/resources/images/BN-NE710_JUMIOj_P_20160321182008.jpg" J="http://si.wsj.net/public/resources/images/BN-NE710_JUMIOj_J_20160321182008.jpg" M="http://si.wsj.net/public/resources/images/BN-NE710_JUMIOj_M_20160321182008.jpg" caption="Facebook co-founder Eduardo Saverin speaks during a Wall Street Journal event in Singapore in 2013. Under a plan for an auction, identity-verification company Jumio Inc.  will put Mr. Saverin first in line to take over." credit="Roslan Rahman/AFP/Getty Images" placement="Inline" suppressEnlarge="false" ]