%1

Any day now, the Second Circuit could create a split of circuits importuning the Supreme Court to decide whether chapter 13 trustees are paid fees even if no plan is confirmed.

Several justices seemed to believe that ‘prospective relief’ is sufficient to remedy the due process violation because the alternatives are ineffective.

At oral argument, the justices were focused on whether the word “appropriate” in Section 1123(b)(6) allows chapter 11 plans to include nonconsensual, nondebtor third-party releases.

Supreme Court to decide whether a creditor has standing to object to any provision in a chapter 11 plan, even provisions that don’t affect the creditor.

The Supreme Court will hear two bankruptcy cases in the new term: nondebtor releases, and refunds for overpayment of U.S. Trustee fees.

Rebuffed in the Second Circuit, the Solicitor General is asking the Supreme Court to stay issuance of the mandate that would allow Purdue Pharma to consummate its chapter 11 plan.

In a motion to stay the issuance of the mandate, the government has announced that it will be filing a petition for certiorari asking the Supreme Court to review the Second Circuit’s Purdue decision allowing bankruptcy courts to issue releases to nondebtors.

Split 5/4, the Supreme Court rules that denial of a motion to compel arbitration automatically imposes a stay pending appeal.

The Supreme Court resolved a split of circuits in an opinion that could give support to the notion that arbitration agreements are not enforceable in bankruptcy.

The high court’s ruling on the Takings Clause also seems to mean that real estate tax foreclosures can be avoided as constructively fraudulent transfers.