Business Reorganization

The Firestar Diamond Case Saga: Can a Claim Transferor that Received an Avoidable Transfer Wash Away Claim Disallowance Risk?

March 2025

The Permissibility of Exculpation Clauses Post-Purdue

March 2025

Applying Pressure on the Debtor Obviates the ‘Ordinary Course’ Defense to a Preference

The ‘ordinary course’ defense only applies to credit terms with healthy customers, not to debtors in financial distress, even if pressure is ordinary in the industry.

Alternatives to Bankruptcy, Including Receiverships and ABCs

The Client’s Business Judgment Held to Justify a ‘Discretionary’ Fee Award

A district court in New Jersey says that a discretionary fee award is neither a bonus nor an enhancement.

Fifth Circuit Holds that Equitable Mootness Doesn’t Protect Parties to the Appeal

Fifth Circuit didn’t permit plan proponents to structure a chapter 11 plan so that an appeal would be equitably moot.

Fifth Circuit Bans Uptier Financings for Violating the Principle of Ratable Treatment

The Fifth Circuit declines to adopt a securities industry guidebook for what’s a permissible financing.

District Courts Disagree on Enforcing an ‘Automatic Stay’ Protecting Nondebtors

A district judge in Ohio declined to sit as an appellate court by deciding whether a bankruptcy court in another state had properly ‘spread’ the automatic stay.

Converting from Chapter 7 to Sub V to Liquidate Is Ok, Judge Cleary Says

A corporate debtor with no income and no operating business could convert an involuntary chapter 7 case to Subchapter V of chapter 11.

A Judgment Lien Isn’t Created by Filing a UCC Financing Statement, Judge Furay Says

To obtain a judgment lien, filing a UCC financing statement is no substitute for docketing a judgment.