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.
A Chapter 7 trustee may pursue any claims or causes of action, including avoidance actions to challenge post-petition transfers of property of the estate, that are property of a debtor’s estate. In a recent decision in the case of In re Genger, the U.S. Bankruptcy Court for the Southern District of New York addressed the distinction between direct claims versus derivative claims in the context of a post-petition release.
These decisions continue the Article III judiciary’s effort to calibrate the proper scope of bankruptcy court power in cases involving sophisticated parties and prepackaged plans, dispensing with equitable mootness and ruling on the merits of appeals.
Although often analyzed separately, these two systems are best understood together: corporate law establishes the conditions for risk, while bankruptcy law provides the rules for allocating losses when those risks fail. Here, we briefly compare the underlying philosophies of each and highlight their points of tension and complementarity.
A recent district court decision provides key lessons in the latest on liability management exercises. The U.S. District Court for the Southern District of Texas, in Wesco Aircraft Holdings v. SSD Investments, reminds parties that it is critical to use precise language in debt documents rather than assuming the existence of implied rights, particularly where such rights are considered sacred.
The Diocese of Camden, NJ and a committee representing roughly 300 survivors of abuse by clergy have reached a $180 million settlement of long-running litigation in U.S. Bankruptcy Court.
