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Nondebtor Releases and the Future of Mass Torts
08/18/2023 Certain members of the bankruptcy academy and bar seem to have their knickers in a twist over the Supreme Court’s grant of certiorari to review the nonconsensual nondebtor releases in Purdue. Conventional wisdom is that SCOTUS is going to find that ...[more]Treasury in the Red... with Yellow
08/02/2023 Freight company Yellow is on the verge of bankruptcy. It's not a company whose financial distress would normally stand out but for the fact that it received $700M in national security loans from the US Treasury in 2020, and, oh man, are taxpayers ...[more]June 7 virtual event on Second Circuit's Purdue Pharma decision
06/02/2023 The Commercial Law League of America is holding a virtual event next week, free of charge and open to all, on broader implications of the Second Circuit's Purdue Pharma decision. ...[more]Third-Party Releases Clearly Endorsed in the 2nd Circuit, At Long Last
05/31/2023 Yesterday's 2nd Circuit opinion reconfirming Purdue Pharma's settlement/restructuring plan is an enlightening read for those interested in third-party releases. ...[more]Calculation of Secured Claims
04/25/2023 When I was a law student the rule I learned about secured claims was that they accrue post-petition interest and attorneys' fees (if provided for by contract or statute) up to the amount of the value of the collateral that exceeds their claims, but ...[more]LTL 2.0: The Largest Fraudulent Transfer in History
04/12/2023 Today was the first day hearing for LTL 2.0. ...[more]LTL, Part Deux (now with even more fraudulent transfers!)
04/05/2023 This post is a joint post by Hon. Judith K. Fitzgerald (ret.) [*] and Adam Levitin Here we go again. Precisely one hour and thirty-nine minutes after the dismissal of the bankruptcy filing of LTL, Johnson & Johnson’s artificially created ...[more]FDIC's Poor Track Record in Holdco Bankruptcies
03/25/2023 Last week I did a post about how the FDIC as receiver for Silicon Valley Bank probably doesn't have a claim against SVB Financial Group, the holdco of the bank. I got some pushback on that (including from a former student!), but I'm sticking to ...[more]What Could Go Wrong When a DIP Maintains a Large, Uninsured Deposit Account at Silicon Valley Bank?
03/10/2023 You gotta feel for BlockFi customers. First, they find themselves creditors in BlockFi's bankruptcy. And now they've found out that BlockFi had a large, uninsured deposit...at Silicon Valley Bank. Yup, it seems that BlockFi had $227 million in a ...[more]The Texas Two-Step's Liquidation Problem
01/15/2023 This post is a joint post by Hon. Judith K. Fitzgerald (ret.) [*] and Adam Levitin ...[more]Sorting Bugs and Features of Mass Tort Bankruptcy
01/12/2023 I have posted a short draft article about mass tort bankruptcy . If you would like to send me comments on the draft, that would be lovely, but please keep two caveats in mind. First, I must submit the revisions by February 9. Second, the article must not ...[more]The Texas Two-Step as Fraudulent Transfer
11/05/2022 Judge Judith Fitzgerald (ret.) and I have a post about the Texas Two-Step bankruptcy process up at the Harvard Bankruptcy Law Blog, which has been running a series on the phenomenon. And the Slips' own John A.E. Pottow has a capstone post on the ...[more]Fake and Real People in Bankruptcy
10/09/2022 This draft essay, Fake and Real People in Bankruptcy , just posted on SSRN, is considerably less far along than Unbundling Business Bankruptcy Law, posted last week . ...[more]Unbundling Business Bankruptcy Law
09/28/2022 A long-in-process draft article has just become available to be downloaded and read here . Comments remain welcome. The Weinstein Company bankruptcy features prominently in this draft article. ...[more]Let's Make Some Crypto Law!
08/03/2022 One of the undiscussed consequences of the spate of recent crypto bankruptcies – domestically including Celsius and Voyager – combined with Congress' inability to legislate is that the bankruptcy courts, namely those in the SDNY, will have a chance ...[more]3M's Aearo Technologies' Bankruptcy: the Hoosier Hop
07/27/2022 3M's earphone subsidiary, Aearo Technologies, filed for bankruptcy today in the Southern District of Indiana. This is looking like a really interesting case: it looks like a new generation of the Texas Two-Step strategy. Let's call it the ...[more]The Texas Two-Step? Just Don't Go to the Dance
03/01/2022 Suppose a company facing mass tort liability to U.S. citizens produced a piece of paper that read "Cook Islands Liability Extinguishment Corporation." The company then says to the tort victims, "We have formed this corporation under the law ...[more]Harmony or Mismatch? A virtual event on mass torts and bankruptcy on February 28
02/23/2022 Just wanted to make sure Credit Slips readers were aware of this virtual event at noon Eastern/3 Pacific on February 28. Bonus: a link to a masterful analysis of the topic by Professor Elizabeth Gibson that the Federal Judicial Center published in 2005. ...[more]