Bankruptcy Process and Procedure

The Code, Deconstructed. There are many "common" Code sections we often think we know what they say -- but in fact, we rarely look at what they "really" say. They are so common that their terms are often oversimplified. Examples that come to mind are relief from stay under 362(g), preferences under 547, and property of the estate under 541. Particularly in light of the textualist approach of the Sup Ct, it is helpful to take the time to focus on and read the actual words of these Code sections. I would suggest a series of panels "deconstructing" key Code sections. I have seen something similar recently in a state program about relief from stay under 362(d). The speakers broke down the statute into is very technical subparts. There were a lot of "I did not know that was what the statute really said" sort of moments. The audience was actively involved. This program (or "series" could work for business and consumer programs. Other Suggested Speakers David Cox david@coxlawgroup.com Cox Law Group, PLLC

Getting to Consent: Plan Classification, Voting and Negotiating Strategies Under Subchapter V Review considerations for designing your classes of claims under a plan when you seek to have all impaired classes accepting the plan. Dealing with government creditor claimants (not inclined to vote). Dealing with other "national" creditors on small cases (where creditor counsel may not be involved). Strategies for encouraging voting and/or dealmaking. Understanding impairment (and when votes are not required). What is a "prompt" cure for purposes of impairment. Risks of artificial impairment. Getting to consent. A review of all of the creative chips that can be traded back-and-forth between creditors and debtor's counsel to negotiate consensual plan. Business David Cox david@coxlawgroup.com Cox Law Group, PLLC

State-Level Remedies in Cross-Border Cannabis Cases This session will review the issues associated with the restructuring of cross-border cannabis entities through state-level remedies such as receiverships and assignments for the benefit of creditors. Relying on recent case studies, the panel will explore the impact of state-level regulatory regimes and other factors on the selection of remedy. Participants will leave the session with an understanding of (a) state-level remedies available to assist distressed cannabis companies and (b) how to evaluate the utility of each given the regulatory regimes in the jurisdictions where the company operates. Debtor Richard Williams rwilliams@brileyfin.com B. Riley Advisory Services

Is Waiver of Service an Option in Adversary Proceedings, Where Nationwide Service by Mail Is Allowed?

After spending many painstaking hours finalizing your client’s claims, you have just filed a new adversary proceeding in bankruptcy court. It is now time to serve the summons and complaint.[1] Hoping to avoid the hassle of identifying and mailing a copy to the defendant’s registered agent,[2] you ask the defendant’s counsel whether she is authorized to accept electronic service on her client’s behalf. If so, you plan to simply email a copy of the summons and complaint to counsel.

Co-Chairs’ Corner

The Bankruptcy Litigation Committee had an outstanding year in 2024 thanks to our amazing members. From writing articles to speaking to volunteering time, our members are some of the most engaged in ABI. Thank you for everything you do! Here is a quick look back at the highlights of 2024.

It is time to amend Bankruptcy Rule 9031 to permit the appointment of special masters in bankruptcy. Discussion of the compelling reasons why Bankruptcy Rule 9031 should be repealed or amended to allow for the appointment of special masters in bankruptcy cases and proceedings. Debtor Suggested Speakers Mark Conlan mconlan@gibbonslaw.com Gibbons P.C.

Co-Chairs Corner

The Commercial and Regulatory Committee produced a variety of programs, articles and materials throughout 2024. Set forth below is a short summary of highlights from the past year; full details of committee activity (including links to program materials and newsletter articles) are available on the committee’s website at www.abi.org/membership/committees/commercial-and-regulatory-law.

The Importance of Strategic Communications and Media Relations in High-Profile Restructurings In high profile restructurings, managing public perception and crafting a go-forward narrative matters. This session explores how strategic communications play a critical role in mitigating reputational damage and preserving brand and estate value throughout the restructuring process, including positioning the company for success upon emergence.

We will explore the importance of:
- Developing a comprehensive communication strategy to address various stakeholders (employees, partners, media, etc.) and preserve enterprise value
- Being prepared to implement aspects of the strategy even before filing (given propensity for leaks) and during key moments of the process through emergence
- Communicating effectively to promote business objectives, shape public perception, support legal strategies, and stabilize key stakeholder relationships
- Proactively (and reactively) addressing misinformation, media inquiries and stakeholder concerns to protect the brand and franchise
- Learning from real-world examples of communication efforts in major bankruptcies
Participants will be able to understand:
- The role strategic communications play in preserving value of the brand and business, including keeping internal and external parties apprised and on side
- The importance of crafting clear, forthright, consistent and timely messaging
- The ways in which strategic communications can significantly influence the outcome of a restructuring process

Debtor Suggested Speakers Paul Caminiti paul.caminiti@reevemark.com Reevemark (Strategic Communications)

Unlocking Hidden Value: Leveraging Life Insurance as a Bankruptcy Asset With over 18 million life insurance policies lapsed or surrendered in 2023, and hundreds of thousands potentially eligible to be treated as valuable assets, bankruptcy trustees have a significant opportunity to enhance outcomes for estates and creditors. This session explores the critical role of life insurance policies in bankruptcy cases, emphasizing the process of valuing and monetizing these assets. It also addresses the importance of maintaining anonymity and ensuring maximum value through competitive marketplaces and non-traditional valuation practices. Attendees will gain actionable insights into identifying, protecting, and leveraging life insurance policies as a pivotal asset in bankruptcy proceedings. 1) Identify Opportunities: Understand how to recognize life insurance policies as potential assets during the bankruptcy process, including the types of policies most suitable for valuation or sale.

2) Understand the Process: Gain knowledge of the step-by-step process to evaluate, protect, and monetize life insurance policies, from assessing the policy's value to executing a sale.

3) Prioritize Anonymity: Learn best practices for maintaining the anonymity of policyholders and insureds to safeguard personal information and ensure compliance with ethical and legal standards.

4) Maximize Value: Explore how competitive bidding platforms and life settlement marketplaces can yield the highest possible value for creditors while navigating potential challenges.

5) Promote Awareness: Discuss strategies for educating policyholders and stakeholders about life insurance as an asset class, preventing policies from being overlooked or prematurely lapsed. Business Suggested Speakers Stephen Jass stephen@LSHub.net Life Settlement Hub

Beware the Limits of Federal Rule of Evidence 408: “Confidential Settlement Communications” in One Matter May Not Be in Another

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. Similarly, at the beginning of a telephone, virtual or in-person meeting, an announcement that it is a “Rule 408 Settlement Conference” may be uttered and met with general agreement.