An ‘Affiliate’ of a Public Company Is Barred from Reorganizing Under Subchapter V

To measure eligibility for subchapter V, the debtor must not be an affiliate of a public company that has 20% or more of the ‘voting securities.’

Debt of an Ineligible Affiliate Is Included in the $7.5 Million Cap for Subchapter V

Although ineligible on its own to be a debtor under subchapter V of chapter 11, the debt of the ineligible company is nonetheless aggregated with the debts of its affiliates to determine whether affiliates are eligible for subchapter V.

Detroit Judge Criticizes the Second Circuit’s Tribune Decision on the Safe Harbor

The Supreme Court is considering whether to review another case defining the safe harbor in Section 546(e).

On a Circuit Split, Sovereign Immunity Wasn’t Waived for Indian Tribes, Judge Says

Section 106 wasn’t sufficiently explicit to waive sovereign immunity for Indian tribes, Judge Frank Bailey said in siding with the Sixth Circuit and differing with the Ninth Circuit.