Investment Banking

Success Fee Dispute Arising Post-Effective Date Is a Core Bankruptcy Matter When Its Resolution Requires Interpretation of Plan Injunction

A plan sponsor’s financial advisor sues the plan sponsor and reorganized debtor for payment of a success fee arising from a purported financing transaction that allegedly closed post-effective date. In what forum should the suit be resolved? According to a recent decision from the Third Circuit, the suit is squarely within the jurisdiction of the bankruptcy court when such claims and issues require interpretation and enforcement of a plan injunction. [1]