District Court Affirms Bankruptcy Court Conversion of Subchapter V Case to Chapter 7
March 31, 2025
The U.S. District Court for the Southern District of New York affirmed a decision by the U.S. Bankruptcy Court for the Southern District of New York converting a debtor’s Subchapter V case to a Chapter 7 case. In particular, the district court found that the bankruptcy court’s decision to convert was not an abuse of discretion, especially in light of the serious conflicts of interest that existed between the debtor and the potential target of significant fraudulent transfer claims held by the debtor’s estate.
Court Allows Nonconsensual Releases of Third-Party Claims to Be Included In Settlement Agreement
March 31, 2025
The bankruptcy bar and courts are attempting to determine the breadth and depth of the Purdue ruling both as to what constitutes consent under a plan of reorganization and whether Purdue applies to other bankruptcy proceedings, including a sale of assets under section 363 of the Bankruptcy Code, free and clear of claims, and approval of settlements. The U.S. Bankruptcy Court for the Eastern District of Virginia recently faced these issues.
Bankruptcy Experts Debate Intersection of Mass Torts and Bankruptcy
March 31, 2025
Perhaps the debate over whether multidistrict litigation or bankruptcy is a better vehicle to resolve mass torts need not be binary. Bankruptcy experts recently discussed the increasingly busy intersection of mass torts and bankruptcy as part of a discussion sponsored by the UC Berkeley School of Law ’s Civil Justice Research Initiative.
Enforceability of Governance Provisions Restricting Access to Seek Bankruptcy Relief
March 01, 2025
For more than six years there has been an ongoing debate regarding the enforceability of governance restrictions, whether blocking rights, golden shares and other provisions designed to manage access to bankruptcy relief. This year, another governance restriction was upheld in dismissing a bankruptcy filing by a debtor that failed to obtain the consent of the lender-approved independent manager as required by its LLC agreement.
Mastering AI for Legal Professionals
March 01, 2025
Mastering AI tools is vital for law firms striving to remain competitive. The increasing demand for prompt and effective services means firms that do not adapt may fall behind. Mastery of AI enhances workflow efficiency while enabling predictive analysis, client insights, and improved decision-making.
J&J’s Third Talc Bankruptcy Case Begins
March 01, 2025
A critical trial in Johnson & Johnson’s talcum powder bankruptcy began on February 18, with several lawyers arguing to dismiss the Chapter 11 case and reject the $10 billion plan.
Lease Analysis Gives Win for Commercial Landlord In Bankruptcy Case
February 01, 2025
The Second Circuit ended a multi-year litigation by affirming a district court’s decision that a landlord’s appeal was “moot for lack of a remedy because, although [that] court [had properly] vacated the assignment and assumption of the lease …, the lease would not revert to [the landlord under Code] §365(d)(4), and that [the landlord] had no alternative remedy.”
