Cover Story The Bankruptcy Strategist

Delaware recently became the sixth state to enact the Uniform Law Commission’s Uniform Act, with minor modifications (the Delaware Act). This two-part article describes the innovations, certainty and paradigm provided by the Uniform Act and Delaware’s revisions to the Uniform Act. Part One includes background regarding assignments for the benefit of creditors, including historical shortcomings that the Uniform Act is intended to address.

In a closely followed venue dispute, the Bankruptcy Court for the District of New Jersey recently held that venue in the District was proper in the Chapter 11 cases of Multi-Color Corporation and its affiliates. The decision is significant because it offers an analytical framework for determining a debtor’s “principal assets” under section 1408 of the Bankruptcy Code.

The QVC Group Inc. faces numerous financial challenges in coming months. It has seen ongoing decreases in revenue across all major segments and sharp drops in operating income. It is also heavily leveraged, with significant debt maturities later this year. Does the QVC saga signify some larger trend among legacy retain and media brands?

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.

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.

In a post-Purdue world — where non-consensual third-party releases are prohibited — bankruptcy practitioners and courts alike have been required to consider and determine what exactly “consent” means for purposes of soliciting such releases.

Sanchez shows the limits of bankruptcy jurisdiction in concrete terms. In the court’s hard-hitting analysis, the decision should at least convince bankruptcy courts to avoid hearing most post-confirmation and unrelated third-party disputes.

In a decision of first impression, the U.S. Bankruptcy Court for the Northern District of Illinois imposed sanctions on a debtor’s counsel and his law firm for filing a brief that included fabricated citations to case law and nonexistent quotations that were generated by AI.