While a number of circuits have held that bankruptcy courts have authority under § 105(a) of the Bankruptcy Code to insulate nondebtors via prospective releases of liability in a confirmed plan, the practice is constrained in other circuits.
Committees
Last year, a divided panel of the Third Circuit Court of Appeals held that the plain language of § 1129(b)(2)(A) of the Bankruptcy Code allows a debtor to propose the sale of a secured creditor’s collateral free and clear of liens without providing a right to credit-bid, so long as the creditor receives the indubitable equivalent of its claim.
Although several months have now passed since the Supreme Court first decided Stern v.
In certain industries, it is not uncommon for parties to a commercial transaction to alter the normal debtor-creditor relationship by entering into consignment arrangements. Under a typical consignment arrangement, the consignor of the goods (typically a manufacturer or distributor) delivers such goods to the consignee (typically a retailer) to be sold.
Representing creditors’ committees can be lucrative, and law firms often engage in competitive pitches with other firms when seeking to become creditors’ committee counsel. In order to bolster the odds of winning multi-firm “beauty contests,” many firms actively solicit votes from committee members, or if the committee is not yet formed, from the potential committee members.
Creditors share bankruptcy estate assets according to the amount and priority of their claims. The estate is comprised of the debtor’s legal and equitable interests in property as of the filing date.
Circuit City and Commissary
Relations between one company and another do not always follow a consistent and steady course. As the economy, industry dynamics, material prices and politics change, the relationship between the customer and suppliers will also often change. This article discusses recent and long-standing opinions of various U.S.
There currently exists a split as to whether goods delivered within 20 days of a filing that qualify as §503(b)(9) administrative expenses (“20-day claims” or “20-day goods”) may also serve as new value to defend a preference under § 547(c)(4). On Jan. 6, 2010, Hon.
Since Hon. Frank Easterbrook’s decision in the Kmart bankruptcy, [1] scholars and attorneys have commented on the decision and voiced their opposition to critical vendor orders in bankruptcy proceedings, yet such orders are still prevalent in bankruptcy cases.
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