Bankruptcy

A sampling of daily headlines is apparently driven by law firms eager to attract lateral partners, to recruit young lawyers, and to please current partners. One wag also recently described this public bragging as a “sedative” to quiet troublesome partners. Does the profession want or even need this kind of publicity? The answer should be no.

The Federal Arbitration Act was enacted to require courts to enforce parties’ agreements to arbitrate disputes. More recently, the Supreme Court has said that “[t]he federal policy is about treating arbitration contacts like all others, not about fostering arbitration.” In bankruptcy cases, a recurring issue that litigants raise is whether a conflict exists between the FAA and the requirements of the U.S. Bankruptcy Code.

Despite a drop in fresh bankruptcy filings in Delaware, three law firms have launched three new Wilmington offices since the start of 2026, predicting a busy second half of the year given ongoing geopolitical turmoil and economic uncertainty.

This article discusses consideration that should be given to guaranties in connection with loan modifications and effective methods for protecting the enforceability of a guaranty in the face of loan modifications.

This decision is a significant development for Subchapter V practice as it fills a notable gap in the law where courts and practitioners have had little guidance regarding the circumstances under which a committee should be appointed in Subchapter V cases.

If a bankruptcy court agrees with a debtor's argument that master leases are “severable,” then the debtor may reject lower-performing locations and retain the higher-performing locations. If the master lease is properly drafted, this outcome is avoided and, if the lease in its entirety is assumed, the landlord may continue to benefit from risk-spreading across multiple properties.

New Jersey’s enforcement posture, reflected in the Yellowstone action, mirrors bankruptcy courts’ long-standing insistence on examining economic substance over contractual form. Taken together, these developments reflect a broader national reassessment of MCA structures that emphasize repayment certainty while minimizing genuine risk transfer.

Bankruptcy law boomed at the end of 2025 and is expected to remain strong throughout 2026, but the reasons for the growth in activity are up for debate, with practitioners crediting global politics, COVID-19’s fallout and other factors.