The U.S. Supreme Court held last week in Truck Insurance Exchange v. Kaiser Gypsum Co. that an insurance company with financial responsibility for bankruptcy claims is a “party in interest” with the right to object to a chapter 11 reorganization plan.
In the past decade, third-party litigation financing (TPLF) — an arrangement where a nonparty funder provides financing for the prosecution of a lawsuit in exchange for an interest in the potential recoveries — has become increasingly accessible in the U.S.
Recently, in In re Pack Liquidating LLC,[1] Hon. Craig T. Goldblatt of the U.S. Bankruptcy Court for the District of Delaware granted derivative standing to the official committee of unsecured creditors to pursue breach-of-fiduciary-duty claims against the company’s founders on behalf of the debtors’ estates.
Spring is here, and the Unsecured Trade Creditors Committee looks back on an eventful 2023 and a busy start to 2024 (for both the committee and the restructuring space as a whole).
Section 503(b)(9) of the Bankruptcy Code creates a priority status for claims for “goods” that were delivered to the debtor within the 20-day window preceding the filing of a bankruptcy action. These claims typically get paid in full and ahead of other claims, thus § 503(b)(9) claims status is highly coveted.
Currently in New York State, creditors’ ability to avoid fraudulent transfers is governed by one of two different statutory schemes, depending on when the transfer occurred.
Section 547(c)(2)(A) of the Bankruptcy Code, often referred to as the “subjective OCB defense,” provides a defense to a preference suit if the defendant can show that the challenged payments made during the 90-day preference period are sufficiently consistent with the historical payments made by the debtor to the defendant.
Trade creditors will undoubtedly want to take steps to protect themselves when dealing with financially distressed customers that are potentially heading toward bankruptcy — such as by decreasing credit limits, tightening payment terms or otherwise ramping up collection efforts.
Through a preference claim, a debtor or trustee seeks to recover, subject to certain creditor defenses, payments that a trade creditor received within the 90-day period prior to a bankruptcy filing. Preference claims have always been an unfortunate reality for trade creditors.
This session explores the issues and implications of managing bankruptcy cases when key assumptions and expectations fail to materialize, and the exit path is no longer available. What happens then?
This panel will discuss the strategic use of valuation evidence throughout the life of a chapter 11 case, from financing and sale process to confirmation and fraudulent conveyance/other litigation.
This mock mediation, based on the Southern District of New York’s (SDNY's) recent preference decision in The Great Atlantic & Pacific Tea Company, Inc. bankruptcy cases involving McKesson Corp., will demonstrate how plaintiff, defendant and mediator analyze risk and preference exposure when trying to reach a mediated settlement. The SDNY’s decision followed two summary-judgment motions filed by McKesson, but this webinar will assume that this is a pre-summary-judgment mediation.
This panel will discuss the historical relationship between secured and unsecured creditors in reorganization cases, and explore recent instances where the groups have worked together to create value for their constituents. The panelists will include an overview of the key positions taken by each group, and will provide first-hand descriptions of how the constituents were able to achieve consensus.
This panel will discuss the following issues regarding crypto, distinguishing customer property from property of the estate, understanding crypto valuation issues, distribution options in crypto cases, M&A risks and pitfalls, effectively using social media to communicate with a large customer base, juggling cash and crypto management, and debtor-on-debtor violence.
When retained causes of action are the only recoveries for residual stakeholders, having the right toolkit —with tools sharpened and up to date — is essential to preserving and maximizing value.
Section 506(c) and 552(b) waivers have become a staple in the pre-petition-lender-turned-DIP-lender toolbox. But what are the unsecured creditor’s tools for pushing back, and the arguments for why value that accrued post-petition might properly be reserved for junior creditors?
Join the Unsecured Trade Creditors Committee to discuss recent hot topics and important developments in preference law. The discussion will include cutting-edge issues regarding the “ordinary course” and “new value” defenses, as well as developing issues regarding the interplay of preference law with § 503(b)(9) and “critical vendor” programs. Ensure that your preference toolkit is up to date with the latest tricks of the trade by listening in.
The UTC Committee hosted their January call on Thursday, the 10th, where speakers discussed (1) what to do when you get wind that your customer could be days or weeks away from a bankruptcy filing; (2) your customer files, so what first day motions should you focus on and be concerned about; and (3) you are "lucky" enough to be invited to serve on the creditors' committee - should you accept the invitation.
Hosted by the Secured Credit and Unsecured Trade Creditors Committees. Unsecured trade creditors and secured creditors confront similar plan analysis issues, including gerrymandering, vote incentivization schemes, drop dead provisions, and golden shares. The panel will discuss some of those “creative” plan provisions and interesting confirmation issues that impact both secured and unsecured creditors.
