In re SCH Corp.
, No. 14-2888, 2015 WL 756552 (3d Cir. Feb. 24, 2015)
In April, the District Court affirmed an oral ruling of the Bankruptcy Court issued in the In re SCH Corp.
post-confirmation bankruptcy proceedings, approving under Bankruptcy Rule 9019 and the Martin
factors a post-confirmation settlement (the “Settlement
”) reached between the debtors’ post-confirmation “Responsible Officer” and a subsidiary (“NCG
”) of the debtors’ plan proponent and sponsor, secured lender, and asset acquiror (“LLCP
”). Our analysis of that ruling can be found here
. In this recent Opinion
of the Third Circuit, the Court of Appeals vacated the District Court’s order, finding the Settlement to be a plan modification under section 1127 of the Bankruptcy Code, a secondary argument made by the appellants, the “CFI Claimants”, which was not addressed in detail before either the Bankruptcy or the District Courts. Read More
Tags: 9019 Settlements