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Claims

Beware the Backdoor Release: Big Lots’ Attempt to Dispose of Estate Claims Via § 363 Reminds Creditors to Scrutinize Asset-Purchase Agreements

In late 2024, struggling retailer and chapter 11 debtor Big Lots Inc. and its debtor affiliates (together, “Big Lots” or the “debtors”) attempted a § 363 sale of substantially all of their assets to an entity affiliated with Nexus Capital Management LP.

Claim Isn’t Disallowed if the ‘Statute’ Lapses After the Claim Is Filed, Third Circuit Says

The Third Circuit upheld Bankruptcy Judge Goldblatt of Delaware where the answer was self-evident but there was no controlling authority.

3rd Circuit

The Army’s Dependent Support Requirement: A DSO Under Title 11?

May 2025

Bankruptcy Code
507
Topic Tags
Claims
Consumer Bankruptcy
Discharge/Dischargeability
Family/Divorce Issues

For an Individual Chapter 11 Debtor, the Usual Retention Rules Don’t Always Apply

When retention benefits the chapter 11 debtor individually but not the estate, Bankruptcy Judge Christopher Bradley believes that compensation is not subject to approval under Section 330.

5th Circuit
Texas
Texas Western District

Texaco’s 1988 Confirmation Didn’t Kill Environmental Suits Decades Later

New York’s Bankruptcy Judge David Jones reopened Texaco’s 1988 bankruptcy to ensure that state courts wouldn’t mistakenly decide that environmental claims were discharged

2nd Circuit
New York
New York Southern District

Purdue Doesn’t Preclude Injunctions from Protecting Nondebtors for the Life of a Plan

New York’s Judge John Mastando saw no reason a Subchapter V plan couldn’t enjoin lawsuits against nondebtors for the life of a five-year plan.

2nd Circuit
New York
New York Southern District

Capital Structure Arbitrage

April 2025

Bankruptcy Code
CHAPTER 5 - Creditors, the Debtor and the Estate
Topic Tags
Claims
Creditors' Committee
Financial Advisors
Valuation
Business Reorganization
Finance and Banking
Investment Banking

A District Court Decision Implies that Marshaling Is Impermissible in Bankruptcy

The circuits are split on whether a bankruptcy court can compel marshalling by the IRS.

5th Circuit
Texas
Texas Northern District

The ‘Probate Exception’ to Federal Subject Matter Jurisdiction Is Narrow

The ‘probate exception’ to federal subject matter jurisdiction does not prevent bankruptcy courts from basing decisions on state trusts and estates law, except in limited circumstances.

6th Circuit

In Lender-on-Lender Violence, an ‘Uptier’ Financing Bites the Dust, this Time in Houston

Fancy drafting by ‘brilliant financiers and lawyers,’ the judge said, didn’t validate an uptier transaction when the ‘effect’ was to release collateral without a two-thirds vote.

5th Circuit
Texas
Texas Southern District
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