Business Reorganization

Courts Divided on Broad or Narrow Grounds for Transferring Venue Under Section 1412

Some courts don’t transfer venue under 28 U.S.C. § 1412 if the claims are only ‘related to’ the bankruptcy and don’t arise in the bankruptcy case or arise under the Bankruptcy Code.

Arbitration in Bankruptcy Isn’t All or Nothing, Judge David Cleary Says

Chicago’s Judge David Cleary called for post-confirmation arbitration of claims between the debtor and a creditor, but no arbitration for the creditor’s defenses, raising questions of bankruptcy law.

Co-Chairs’ Corner: Year in Review

The Business Reorganization Committee had a busy and successful 2024, and we are already looking forward to another great year in 2025.

Over the past year, committee members took advantage of the many benefits afforded them, including the committee’s newsletters, podcast, webinars and educational programs. We have big plans for 2025, and we thank our committee members and leadership for their support and continued participation.

Sex Abuse Victims to Have a Private Conference with the Judge and the Catholic Bishop

Bankruptcy Judge Christopher Klein said it was ‘nonsense’ to argue that ‘a Bankruptcy Court lacks authority to permit survivor statements to be made to the Court and to the Bishop.’

Opt-Out Plan Confirmed with Impaired Creditors Almost Unanimous in Support

In the Spirit Airlines reorganization, no creditors with an economic interest had opposed confirmation of a plan with opt-out releases for nondebtors.

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

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

For Fraudulent Transfers, Retailers Needn’t Police Who Receives Value from the Purchase

Judge Peter Henderson declined to adopt an interpretation of Section 548 that would turn innocent retailers into recipients of fraudulent transfers when someone buys goods but turns the goods over to someone else.

Bankruptcy Judge Rejects a District Court’s Narrow View of Sales Free and Clear

New York’s Judge Philip Bentley interpreted Section 363(f)(5) to permit a sale free and clear whenever a creditor could conduct a foreclosure or a UCC sale.

Ciara L. Rogers: A Legacy of Service, Empathy and Entrepreneurial Spirit

Editor’s Note: In honor of Black History Month, the Business Reorganization Committee interviewed Ciara Rogers, a partner with Waldrep Wall Babcock & Bailey, PLLC in Raleigh, N.C.

Challenges and Successes of a Liquidating Trustee

In 2022, following a downturn in travel related to the COVID-19 pandemic, a regional airline filed for bankruptcy in Delaware. In the following months, pursuant to the plan, Chris Tierney was appointed as liquidating trustee, and Steven Jackson was brought in to handle the day-to-day operations. Over the next two years, we worked through many challenges and ultimately made our final distributions to creditors at the end of 2024.