The Supreme Court today granted certiorari in Czyzewski v. Jevic Holding Corp. to decide whether bankruptcy courts are allowed to dismiss chapter 11 cases when property is distributed in a settlement that violates the priorities contained in Section 507 of the Bankruptcy Code, according to an analysis by ABI Editor-at-Large Bill Rochelle. Although Jevic deals with structured dismissals, the Supreme Court’s decision might also have the effect of allowing or barring so-called gift plans where a secured creditor or buyer makes a payment, supposedly from its own property, that enables a distribution in a chapter 11 plan not in accord with priorities. Granting certiorari was not surprising because there has been a long-standing split of circuits. Click here to read Rochelle's exclusive analysis.
Click here to view the certiorari petition and other Jevic case documents on ABI's Supreme Court page.
