In the case of In re Promise Healthcare Group, the Third Circuit, addressing an unresolved question within the circuit, recently held that a claim’s enforceability is evaluated as of the petition date, not at the time an objection to the claim is filed.
Liability management exercises (LMEs) have gained considerable attention during the past few years. Whether intended for good purposes or not, LMEs have significantly disrupted the traditional loan business through aggressive priming and subordination tactics — leading some to characterize this phenomenon as lender-on-lender violence.
Bankruptcy cases almost always involve a substantial loss of value. When that happens, disputes arise and claims are asserted among stakeholders. This case is a reminder that when assessing the viability of such claims, if a limited liability company has been utilized for the business, strict attention must be paid to the terms of the agreement, starting with an analysis of whether all fiduciary duties have been waived.
The Circuit split caused by MTE can and should be fixed by the Fifth and Seventh Circuits when the appropriate appeal reaches them. MTE reflects the more current analysis. It is unlikely that the Supreme Court will be able to resolve the split any time soon.
The “divestiture rule is not truly jurisdictional,” a Florida Bankruptcy court held in the recent ECI Pharmaceuticals case, which shows how one court analyzed when or when not to apply the divestiture rule.
The world — and particularly the U.S. economy — is navigating unprecedented and turbulent times. For bankruptcy professionals, it may feel as though we’ve fallen down Alice’s rabbit hole, where the rules we've long understood and accepted no longer apply. In this new reality, uncertainty defines both the global and American economic landscapes.
The Third Circuit, in a complicated five-year old case, avoided the merits of two groups of appeals from an order confirming the debtor’s reorganization “Plan.” In In re Boy Scouts of America (BSA), the majority used statutory mootness, while a concurring judge would have used equitable mootness to dodge the issue of nonconsensual third-party releases in the Plan and Confirmation Order.
A recent bankruptcy court decision has added its perspective to an increasingly divergent line of case law scrutinizing the enforceability of a debtor’s prepetition waiver of the automatic stay afforded to it by Section 362(a) of the Bankruptcy Code.
Consumer genetics company 23andMe’s bankruptcy in late March set off a scramble among consumers to delete their personal information held by the company, driven by fears of how an acquiring party might attempt to use or monetize their data.
The U.S. Court of Appeals for the Third Circuit has reinstated sanctions against Spector Gadon Rosen & Vinci for failing to fully disclose its fees in a Chapter 7 bankruptcy.
