Bankruptcy

One area that has been the subject of much litigation concerns when a debtor can sell general and limited partnership interests, as well as its role as the manager of the partnership’s business. This issue was addressed recently in a decision by the U.S. Bankruptcy Court for the Northern District of Texas in In re Genesis Healthcare.

A growing body of case law, including recent bankruptcy court decisions, is forcing a reckoning on merchant cash advances. When an MCA provider’s claim comes before a bankruptcy court, the fundamental question often becomes: Is this really a sale, or is it a loan in disguise?

The assignment for the benefit of creditors (ABC) is having a moment. The Uniform Law Commission’s 2025 Uniform Assignment for the Benefit of Creditors Act has been enacted in six states, while economic concerns are pushing distressed middle-market companies toward this faster and less expensive bankruptcy alternative.

Google’s $10 million deal to buy a vast quantity of data from the defunct Spirit Airlines is being seen as a harbinger of growing interest in the buying and selling of corporate records. But the trend could bring new challenges for attorneys.

Mattress retailer Sleep Number may pay up to $1.825 million in retention awards to 38 employees after a Southern District of New York bankruptcy judge rejected the U.S. trustee’s argument that some participants should be treated as insiders under the Bankruptcy Code. The awards were intended to keep key employees from leaving while Sleep Number completed its bankruptcy sale.

Jackson Walker has agreed to pay $15 million to former bankruptcy clients in a settlement of litigation the U.S Trustee’s Office filed alleging the Texas firm failed to disclose a romantic relationship between a former partner Elizabeth Freeman and former U.S. Bankruptcy Judge David Jones of the Southern District of Texas.

The U.S. Bankruptcy Court for the District of Connecticut decision in JNET Commc’ns offers a stark reminder that control of cash collateral is not a mere formality under Article 9 of the Uniform Commercial Code; it is the crucial element of perfection itself.

In a recent decision in the bankruptcy case of Del Monte Foods, the U.S. Bankruptcy Court for the District of New Jersey interpreted a liability management exercise that was challenged through the prepetition term loan agreement’s ratable sharing provision in the context of a debtor-in-possession financing and related roll-up, thereby providing the first actual market guidance on this issue.