Follow Us
Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.
The Second Circuit had a tough call to make in the Purdue Pharmacy bankruptcy appeal: What to do about the release given to the Sackler families who had agreed to contribute $5.5 to $6 billion to Purdue’s reorganization plan but were not themselves in bankruptcy. By the time that the Second Circuit heard the appeal from the district court’s rejection of the release, all of the objections had been withdrawn, except those of the U.S. trustee, a Justice Department official who does not represent any creditors, and some Canadian municipalities. The release issue was all that was holding up the distribution of billions of dollars to the claimants that include municipalities, hospitals and individuals and families who suffered serious harms from Purdue’s over promotion of OxyContin, which many claimants believe was due to the unlawful acts of the Sackers, who took out $11 billion from the company and are now living outside the United States.
Continue reading by getting
started with a subscription.
Delaware District Court Could Guide Supreme Court Purdue Pharma Decision
By Michael L. Cook
A bankruptcy court properly held that derivative claims based on “piercing the corporate veil theory of liability [were] released under” a confirmed reorganization plan, but that direct “claims for negligent undertaking” were not released and “could be asserted” in state court against the debtors’ equity sponsors.
Court Caps Landlord's Bankruptcy Claim Against Lease Guarantor
By Andrew C. Kassner and Joseph N. Argentina Jr.
A big issue in real estate and retail bankruptcies, among others, involves the disposition of commercial real estate leases, given the potential magnitude of landlord damage claims under state law resulting from a tenant’s default under a long-term lease.
Delaware Bankruptcy Court Rejects Equity Holder's Challenge to Revoke Confirmation Order
By Lawrence J. Kotler
The equity owner asserted that the confirmation order previously entered by the court should be revoked based on the equity owner’s claim that value was lost due to improper sale and marketing efforts by the debtors and its professionals both pre- and post-bankruptcy and, as such, they should have been “in the money” and entitled to a distribution under the confirmed plan.
By George Williams
One of the major catalysts of the “Crypto Winter” that began in 2022 was the collapse of Terraform Labs’s native token LUNA in May 2022. Now two years and a dozen crypto-related bankruptcies later, Terraform Labs has filed for Chapter 11 protection.
Copyright © ALM Global, LLC. All Rights Reserved.
