Business Reorganization

Fourth Circuit Upholds a $31 Million Default Judgment for Discovery Abuses

Long Island’s Judge Grossman warns lawyers that they may be paid nothing if they file chapter 11 cases just to delay a secured creditor, with no legitimate strategy for selling the property, refinancing or confirming a plan.

Denial of $21 Million in Fees for Boy Scouts Ad Hoc Committee Upheld on Appeal

Delaware district court rules that debtors and trustees alone have standing to propose spending estate money outside of the ‘ordinary course.’

Don’t Tread on Me! Minority Lenders Score a Victory in American Tire

March 2025

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.