A recent decision by Judge Jed Rakoff of the Southern District of New York highlights the risks faced by directors and officers of companies in financial distress who fail to undertake properly their duties to the company and its stakeholders.
Continue Reading If the Shoe Fits . . . . Defendants in Nine West D&O Litigation Fail to Convince Judge to Dismiss Claims for Breach of Fiduciary Duty and Recovery of Fraudulent Transfers
Chapter 11
Commercial Landlords Take Note – COVID Relief Bill Contains Important Bankruptcy Code Amendments
By Ben Feder on
Posted in Chapter 11, COVID-19 Bankruptcy
The much-ballyhooed COVID relief bill passed by Congress at the end of last year, in addition to providing for $600 checks to millions of people, includes several COVID-related amendments to the U.S. Bankruptcy Code. Some of these changes will have…
Continue Reading Commercial Landlords Take Note – COVID Relief Bill Contains Important Bankruptcy Code Amendments
PG&E Bankruptcy Judge to FERC: What Part of “Exclusive” Jurisdiction Do You Not Understand?
By Ben Feder on
Posted in Chapter 11
U.S. Bankruptcy Judge Dennis Montali recently ruled in the Chapter 11 case of Pacific Gas & Electric (“PG&E”) that the Federal Energy Regulatory Commission (“FERC”) has no jurisdiction to interfere with the ability of a bankrupt power utility company to…
Continue Reading PG&E Bankruptcy Judge to FERC: What Part of “Exclusive” Jurisdiction Do You Not Understand?
Supreme Court Displays More Pragmatic Approach to the Bankruptcy Code in Merit Management v. FTI Consulting
By Ben Feder on
Posted in Chapter 11
The Supreme Court’s recent decision in Merit Management Group, LP v. FTI Consulting, Inc. has appropriately drawn significant attention. The Court, by narrowing the “safe harbor” provision of Section 546(e) of the Bankruptcy Code, has opened the door for…
Continue Reading Supreme Court Displays More Pragmatic Approach to the Bankruptcy Code in Merit Management v. FTI Consulting
Fees for Defending Fees – Recent Rulings Permit Contractual Circumvention of Supreme Court’s Baker Botts v. Asarco Decision
By Ben Feder on
Posted in Chapter 11
The Supreme Court two years ago ruled in Baker Botts v. Asarco that bankruptcy professionals entitled to compensation from a debtor’s bankruptcy estate had no statutory right to be compensated for time spent defending against objections to their fee applications. …
Continue Reading Fees for Defending Fees – Recent Rulings Permit Contractual Circumvention of Supreme Court’s Baker Botts v. Asarco Decision
Nortel Judge Rejects Noteholders’ Challenge to Indenture Trustee’s Fees
By Ben Feder on
Posted in Chapter 11
Judge Kevin Gross of the U.S. Bankruptcy Court for the District of Delaware handed down an important ruling last week that turned aside most of an unusual challenge to the fees and expenses of an indenture trustee in the long-running…
Continue Reading Nortel Judge Rejects Noteholders’ Challenge to Indenture Trustee’s Fees
Delaware Bankruptcy Judge: A Carve-Out for Fees Is Not a Cap
By Ben Feder on
Posted in Chapter 11
Judge Christopher Sontchi recently issued an important opinion in the Molycorp chapter 11 case. He held that a standard carve-out in a financing order for the fees of counsel and other professionals for an official creditors’ committee will not…
Continue Reading Delaware Bankruptcy Judge: A Carve-Out for Fees Is Not a Cap
Punt, Pass or Kick? Supreme Court Struggles With Jevic at Oral Argument
By Ben Feder on
Posted in Chapter 11
The U.S. Supreme Court heard oral arguments this week in the case of Czyzewski v. Jevic Holding Corp. Although veteran Court watchers caution about seeking to predict ultimate rulings based on justices’ questions and stated concerns, it is difficult…
Continue Reading Punt, Pass or Kick? Supreme Court Struggles With Jevic at Oral Argument
Jevic Could Be the Most Consequential Chapter 11 Decision in Many Years
By Ben Feder on
Posted in Chapter 11
The U.S. Supreme Court will hear the case of Czyzewski v. Jevic Holding Corp. during the new term that began last week. The questions it presents are relatively simple. First, can a bankruptcy court, in dismissing a case under the…
Continue Reading Jevic Could Be the Most Consequential Chapter 11 Decision in Many Years
Energy Future Holdings Chapter 11 Case – The Largest Game Ever of Texas Hold’em?
By Ben Feder on
Posted in Chapter 11
The chapter 11 case of Energy Future Holdings (“EFH” or “Debtors”) roared back to life this month. Certain key conditions for the plan of reorganization approved last December (the “First Plan”) to become effective were not met by a deadline …
Continue Reading Energy Future Holdings Chapter 11 Case – The Largest Game Ever of Texas Hold’em?