Bankruptcy Litigation

Judge Wiles Sets Significant Hurdles for Chapter 15 Creditors Seeking Rule 2004 Discovery Via “Good Cause” Requirement

On Dec. 12, 2023, Hon. Michael E. Wiles of the U.S. Bankruptcy Court for the Southern District of New York (the “Chapter 15 Court”) denied a motion filed by creditor Sablon Partners Ltd. in the chapter 15 cases of Americanas S.A.

Rule 2004 Examinations in Adversary Proceedings or Contested Matters: Not Your Time to Fish!

Litigation in bankruptcy can be highly contentious, and attorneys often believe that the normal rules in federal district court governing depositions do not apply to a Rule 2004 examination of a debtor. But do those attorneys have it wrong in an adversary proceeding or contested matter? Rule 2004 exams are not always as broad as interested parties hope.

Bankruptcy Litigation | January 2024

What Is a “Bona Fide Dispute”?

Two provisions of the Bankruptcy Code turn on the existence of a “bona fide dispute.” An involuntary petition may not be filed by an alleged creditor against the alleged debtor if the creditor’s claim is “the subject of a bona fide dispute as to liability or amount.”[1] A trustee may sell property free and clear of an interest that is “in bona fide dispute.”[2] These disparate statutory provisions share a unique phrase.

Finality in Bankruptcy Appeals: Ritzen and Its Aftermath

In Ritzen Grp. Inc. v. Jackson Masonry LLC,[1] the U.S. Supreme Court definitively established that an order denying a motion for relief from the automatic stay under Bankruptcy Code § 362(d) is a final order that may be — and must be — immediately appealed. In the years following Ritzen, almost every circuit court has had an opportunity to ring in on finality issues. This article surveys notable circuit court opinions applying Ritzen in contexts ranging from discovery motions to claim objections.

Co-Chairs’ Corner

We are excited to report that the Bankruptcy Litigation Committee was very active in 2023, with 2024 looking just as good, if not better. The committee now has more than 1,100 members — over 200 more than we had just three years ago. It is its members that make this committee so vibrant, and we just wanted to say thank you to everyone who helped make 2023 great.

Here is a quick review of last year — and a preview of what is to come.

Litigating a Motion to Appoint a Chapter 11 Trustee Pursuant to § 1104(A)

The panelists will discuss the pros and cons of seeking the appointment of a chapter 11 trustee, effective strategies to prosecute and defend motions to appoint a trustee, and the current state of the case law surrounding such motions.

Making the Most of a Litigation Trust’s Retained Causes of Action

When retained causes of action are the only recoveries for residual stakeholders, having the right toolkit —with tools sharpened and up to date — is essential to preserving and maximizing value.

Reevaluating Class Proofs of Claim

In today’s bankruptcy world, most major cases involve at least one pre-petition class action. This panel will focus on the distinction between mass tort claims and other types of class actions, recent case law addressing the proper procedures for asserting class claims, the allowance of class claims and compensation of class counsel, and the final resolutions of class claims, either by way of settlement or pursuant to plans. Other cutting-edge issues surrounding class claims also will be discussed.

Bankruptcy Litigation September 2022