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ABI Journal

Business Reorganization Committee

business-reorganization

The Business Reorganization Committee had a busy and successful 2024, and we are already looking forward to another great year in 2025.

Editor’s Note: In honor of Black History Month, the Business Reorganization Committee interviewed Ciara Rogers, a partner with Waldrep Wall Babcock & Bailey, PLLC in Raleigh, N.C.

In 2022, following a downturn in travel related to the COVID-19 pandemic, a regional airline filed for bankruptcy in Delaware. In the following months, pursuant to the plan, Chris Tierney was appointed as liquidating trustee, and Steven Jackson was brought in to handle the day-to-day operations.

Lawyers often prominently designate a letter or e-mail communication as a “Rule 408 Protected Settlement Communication” that is “inadmissible” as evidence. That label will be in bold and italicized, maybe in all caps, for emphasis.

In the wake of the U.S. Supreme Court’s Harrington v. Purdue Pharma L.P[1] decision definitively doing away with nonconsensual third-party releases, courts and practitioners alike have been struggling with the meaning of “consensual” in the context of such releases. One such jurist is the Hon. Craig Goldblatt of the U.S.

Many lawyers viewed chapter 11, which came into effect in 1979, as unsuccessful in the 1980s. Large firms had been mired in bankruptcy for years — three years, on average. The process was seen as expensive, inaccurate and subject to abuse.

District Court Judge Frank Geraci of the Western District of New York stirred the pot on what seemed like a settled chapter 11 issue by reversing the bankruptcy court and rejecting the majority view on the fate of official committees upon dismissal of a chapter 11 case.[1]

Several debts are “excepted” from the bankruptcy discharge. [1] Corporate debtors can overcome some of these exceptions to the discharge through chapter 11. [2] But before a corporate debtor can get its discharge, it must confirm a plan, and only 20% of regular chapter 11 plans are confirmed. 

What’s been going on in the bankruptcy claims marketplace over the past year? Crypto, crypto, crypto, sprinkled in with a little bit of trucking, courtesy of the Yellow Corp. case. [1]

The Third Circuit has a reputation as being a “plain meaning” court — meaning that it strictly construes and applies the words of a statute. Its Jan. 19, 2024, opinion in In re FTX Trading Ltd. [1] is an example.

This panel focuses on the critical role of strategic communications during large, high-profile bankruptcy cases. Using real-world examples, experts discuss the challenges of managing media narratives, stakeholder concerns and public perception in high-stakes scenarios. Topics include media relations, crisis communication strategies, and the importance of proactive storytelling to ensure a successful restructuring.

This panel will discuss the impact on consumers, and consumer bankruptcy cases, when a consumer lender or loan-servicer files for chapter 11.

The increased debt limit applicable to subchapter V cases expired in June 2024. This webinar, hosted by ABI's Business Reorganization and Legislation Committees, will examine the effects of the increased debt limit's expiration, where small business debtors and their attorneys can go from here, best practices and potential workarounds, prospects for further congressional action and more.

This panel will discuss the historical relationship between secured and unsecured creditors in reorganization cases, and explore recent instances where the groups have worked together to create value for their constituents. The panelists will include an overview of the key positions taken by each group, and will provide first-hand descriptions of how the constituents were able to achieve consensus.

This panel of experts will discuss emerging trends from recent restructurings and bankruptcies in the health care industry, with a special focus on hospitals and biotechnology companies.

This panel will discuss the following issues regarding crypto, distinguishing customer property from property of the estate, understanding crypto valuation issues, distribution options in crypto cases, M&A risks and pitfalls, effectively using social media to communicate with a large customer base, juggling cash and crypto management, and debtor-on-debtor violence.

These overviews from ABI committee experts will arm you with vital information you can use in your practice well into the new year.

Dealing with Digital Assets

This panel will delve into issues involving digital accounts, cryptocurrency and NFTs, including how to getsecured and perfected, how to liquidate, and bankruptcy-specific considerations. The panelists also will discuss UCC Article 12 and its impact on the digital-asset world for secured parties, and help practitioners better understand the considerations and issues they should be spotting when advising their constituents on dealing with digital assets.

Recent large bankruptcies like NRA, Boy Scouts of America, Roman Catholic Archdiocese, Purdue Pharma and J&J have invigorated debate over the longstanding issues of venue and bad faith in bankruptcy. This panel will explore matters surrounding venue and bad-faith filings, related ethics considerations, and the newest wave of reform initiatives.

There have been a number of recent bankruptcy filings by large and high profile healthcare providers, such as the filings of Verity Health System of California, Inc., in Los Angeles (the second largest hospital bankruptcy case in American history), Hospital Acquisition LLC and 25 related debtors d/b/a Promise Health and American Academic Health System (Hahnemann University Hospital and St. Christopher Hospital in Philadelphia) in Wilmington, Delaware, and Astria Health in Yakima, Washington.

Jacob Frumkin Esq.

Jacob Frumkin Esq.

Co-Chair

Hackensack, NJ

Cole Schotz P.C.

(646) 563-8944

Scott D. Lawrence

Scott D. Lawrence

Co-Chair

Dallas, TX

Wick Phillips, LLP

(214) 420-4449

Yelena E. Archiyan

Yelena E. Archiyan

Communications Manager

Dallas, TX

Katten Muchin Rosenman LLP

(214) 765-3657

Evan N. Parrott

Evan N. Parrott

Education Director

Mobile, AL

Maynard Nexsen, PC

(251) 206-7449

Daniel J. Harris Esq.

Daniel J. Harris Esq.

Membership Relations Director

Hackensack, NJ

Cole Schotz P.C.

(201) 525-6202

Erica Mannix

Erica Mannix

Newsletter Editor

Roseland, NJ

Lowenstein Sandler LLP

(973) 597-2500

Anthony Lee Pacchia

Anthony Lee Pacchia

Special Projects Leader

New York, NY

ICR

(908) 403-7790

Amy A. Quackenboss

Amy A. Quackenboss

Executive Director

Alexandria, VA

American Bankruptcy Institute

(703) 739-0800

Karim Guirguis

Karim Guirguis

Staff

Alexandria, VA

American Bankruptcy Institute

(703) 739-0800

Chris S. Thackston

Chris S. Thackston

Staff

Alexandria, VA

American Bankruptcy Institute

(703) 739-0800

Carolyn M. Kanon

Carolyn M. Kanon

Staff

Alexandria, VA

American Bankruptcy Institute

(703) 739-0800

Jourdana Claibourn

Jourdana Claibourn

Staff

Alexandria, VA

American Bankruptcy Institute

(703) 739-0800

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