June 06, 2025

Fifth Circuit Explains When There Is No Double Recovery from Avoiding a Lien

Circuit Judge Edith Jones explains that the word ‘or’ in Section 550(a) doesn’t mean ‘and.’

5th Circuit

June 05, 2025

There’s an Exception to the Rule that Fraudulent Transfer Recoveries Can’t Benefit Shareholders

When creditors have been paid in full, a trustee may pursue fraudulent transfers for the benefit of defrauded equity holders, Bankruptcy Judge Craig Goldblatt says.

3rd Circuit, Delaware

June 03, 2025

Like 18th Century England, There’s No Jury Trial Right for Stay Violations

Granfinanciera tells us to study English law from the 18th century in deciding when there’s a right to a jury trial in bankruptcy cases.

9th Circuit, Washington, Washington Western District

May 28, 2025

Opting Out Is Consent for Nondebtor Chapter 11 Releases, New York Judge Says

Another bankruptcy court in New York holds that the ability to opt out of nondebtor releases represents consent after Purdue.

2nd Circuit, New York, New York Southern District

May 27, 2025

Consent Is an Exception to Jevic’s Insistence on Respecting Priorities in Distribution

Consent from administrative creditors provided grounds for approving DIP financing and a sale when the estate was administratively insolvent.

11th Circuit, Florida, Florida Southern District

May 23, 2025

After Purdue, Two Courts Still Permit Broad Nonconsensual Releases in ‘15’

Bankruptcy courts in New York and Delaware believe that Purdue did not change the law and that nondebtor releases and exculpations are still permissible in chapter 15 cases.

2nd Circuit, New York, New York Southern District

May 22, 2025

Two Courts Hold: Injunctions Are Ok to Protect Nondebtors for the Life of a Plan

Judge Meredith Grabill of New Orleans agreed with New York’s Judge Mastando that a Subchapter V plan can enjoin lawsuits against nondebtors for the life of a three-year plan.

5th Circuit, Louisiana, Louisiana Eastern District

May 20, 2025

The ‘Dissent’ in Boy Scouts Favored Using Equitable Mootness to Uphold Nondebtor Releases

The circuit courts are diverging on the utility of equitable mootness to avoid reversing confirmation of chapter 11 plans.

3rd Circuit

May 19, 2025

As to Appealing Insurers, the Boy Scouts Plan Was Not Equitably Moot

Holding $1.4 billion in escrow did not preclude invocation of equitable mootness, Third Circuit majority says.

3rd Circuit

May 16, 2025

Third Circuit Upholds Boy Scouts’ Nonconsensual Releases, Purdue Notwithstanding

The Third Circuit majority upheld nondebtor, nonconsensual releases because they were part of a sale, making the appeal statutorily moot under Section 363(m).

3rd Circuit