Bankruptcy Litigation

District Court Doesn’t Say Whether ‘Person Aggrieved’ Survived Truck Insurance

District court upholds an ‘opt-out’ chapter 11 plan with releases for nondebtors.

Chicago Judge Devises a Better Method to Allocate Income Tax Refunds Between Spouses

Whoever was overwithheld is entitled to the IRS refund when one spouse doesn’t file, Judge Michael Slade says.

Evidence: Empower, Excellence, Enjoy

Rediscovering § 157(b)(5) Transfers in Mass Tort Bankruptcies: Part II

April 2025

Real Estate Distress and Bankruptcy: Mitigating Risks and Protecting Investments

As rising interest rates, tightening credit conditions, and shifting market dynamics place increasing pressure on real estate assets, bankruptcy and restructuring professionals must be prepared to navigate distressed situations strategically. This session will explore the intersection of real estate, bankruptcy, and litigation, providing insights into effective legal strategies for preserving asset value, resolving disputes, and maximizing recoveries in real estate-related bankruptcies. Attendees will gain a deeper understanding of common distress triggers, key considerations for restructuring agreements, and best practices for handling litigation arising from distressed real estate investments. Experts will also discuss the role of receiverships, workouts, and court-supervised sales in resolving real estate bankruptcies. Analyze Distress Triggers: Identify the key financial and legal factors leading to distress in real estate investments, including debt maturities, covenant breaches, and sponsor disputes.
Understand Restructuring Tools: Explore workout strategies, prepackaged bankruptcies, and other mechanisms for repositioning distressed real estate assets.

Evaluate Litigation Risks: Examine common legal disputes in real estate bankruptcies, including lender liability claims, fraudulent transfer litigation, and lease assumption/rejection battles.

Assess the Role of Receiverships and Sales: Learn how receiverships and 363 sales can be leveraged to maximize asset value and facilitate orderly dispositions.

Develop a Litigation-Resistant Investment Strategy: Gain insights into structuring real estate deals to mitigate risks and protect creditor and investor interests in downturns. Business Suggested Speakers Gaby Suarez Walters gaby@rarepublicrelations.com R[AR]E Public Relations

Judgment Liens Based on Nondischargeable Debts May Be Avoided as ‘Impairments’

A homestead can be protected from collection of a nondischargeable debt, limiting the judgment creditor to attaching nonexempt property.

Barton Halted Third Parties from Suing in an Allegedly Better Forum

When third parties sued a trust created by a confirmed chapter 11 plan, Judge Garrity declined to invent any new exceptions to the Barton doctrine.

A Good Faith Objection to a Sale Cannot Be Raised the First Time on Appeal

The existence of a competing bidder does not put the buyer on notice of an ‘adverse interest’ to avoid dismissal for mootness under Section 363(m), the Sixth Circuit BAP says.

Applying § 523 to Corporate Sub V Debtors: A Conscious Policy Decision, or a Drafting Oversight?

April 2025

Debtor Not Compelled to Arbitrate Automatic Stay or Discharge Violations

A district court in Minnesota left the door open for sometimes compelling debtors to arbitrate claims arising in a bankruptcy case.