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A “community hospital” is generally located in a smaller town but can also include urban facilities that serve a market segment distinct from a major teaching hospital. A community hospital is generally not-for-profit and historically not affiliated with a larger system. Many community hospitals are in distress. The causes are varied but have a constant theme — the cost to adapt to a rapidly changing environment. Potential investors in distressed community hospitals will similarly need to be nimble in their due diligence.
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By Louis F. Solimine, James J. Henderson and Andrew L. Turscak, Jr.
In a recent, unanimous opinion authored by Justice Ginsburg, the U.S. Supreme Court affirmed lower court decisions holding that a bankruptcy court order denying a motion for relief from the automatic stay constitutes a final order that must be appealed within the time provided under Federal Rule of Bankruptcy Procedure 8002.
Bankruptcy Court Denies Motion for Fee Enhancement Under ‘Common Fund Doctrine’
By Rudolph J. Di Massa, Jr. and Geoffrey A. Heaton
The U.S. Bankruptcy Court for the Western District of Virginia recently denied creditors’ counsel’s motion for a fee enhancement under the “common fund doctrine,” finding it could not award the requested fees absent statutory authority.
Examining the Interplay Between Exculpation Clause and Fiduciary Duty
By Lawrence J. Kotler
In the case of In re Solutions Liquidation, the U.S. Bankruptcy Court for the District of Delaware adjudicated a motion to dismiss filed by the debtors’ former managers and officers in connection with the breach of fiduciary duty complaint filed against them by the trustee of the debtors’ liquidating trust.
Sixth Circuit Considers Rejection of a Filed Power Purchase Agreement
By Andrew C. Kassner and Joseph N. Argentina Jr.
The provisions of the Bankruptcy Code sometimes conflict with other federal laws and regulations. The Sixth Circuit Court recently considered whether an energy company debtor could reject a power purchase agreement as an executory contract that had been filed with the Federal Energy Regulatory Commission (FERC)
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