Liability Management Exercises: Read the Fine Print
June 30, 2025
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.
In LLC Stakeholder Claim Disputes, Pay Strict Attention to Agreement Terms and Possible Waivers
June 30, 2025
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.
Third Circuit Sides With Magistrates On Bankruptcy Appeals
June 30, 2025
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.
Down the Rabbit Hole: Bankruptcy Practice In Uncertain Times
May 31, 2025
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.
Third Circuit’s Mootness Debate Avoids Reversal of Confirmation Order
May 31, 2025
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.
Managing Consumer Data In Bankruptcy Proceedings
May 31, 2025
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.
