U.S. Courts News Reporter
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Tuesday’s argument in Truck Insurance Exchange v. Kaiser Gypsum Co. considered a technical question under the Bankruptcy Code, how to decide when an entity is a “party in interest” under the statute, which gives it a right to “be heard on any issue” in a Chapter 11 proceeding. The debtor, a failed asbestos company, claims that it will perform its insurance contracts in full: It will pay all the deductibles it owes, 100 cents on the dollar. Accordingly, it … Read the rest
Total bankruptcy filings rose 16.8 percent, with significant increases in both business and non-business bankruptcies, in the twelve-month period ending Dec. 31, 2023. This accelerates a continuing rebound in filings after more than a decade of sharply dropping totals.
Judiciary News – United States Courts
Amid the current market uncertainties, distressed asset sales are likely to rise. International investors are looking for efficient solutions, preferably ones that reflect solutions in their home jurisdictions. One popular mechanism is the use of pre-pack sales. A pre-pack sale manages the adverse impact of insolvency proceedings on the distressed company’s business, while reducing the time and cost of such proceedings, and offering greater asset realisation to be distributed among creditors.
Under Polish law, a prepared liquidation, or a “pre-pack”, … Read the rest
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Purdue Pharma’s bankruptcy deal, which will reach the Supreme Court for oral argument on Monday, is just one of many examples of recent unorthodox civil procedure maneuvers in public harms litigation. From the Catholic Diocese and Boy Scouts in their respective abuse cases to Johnson & Johnson’s talc litigation, 3M’s earplug case, and Revlon’s hair straightener case, corporations are turning to bankruptcy court over the traditional civil litigation process. Bankruptcy and its special powers are being used to compensate … Read the rest
Total bankruptcy filings rose 13 percent, and business bankruptcies rose nearly 30 percent, in the twelve-month period ending Sept. 30, 2023. This continues a moderate rebound after more than a decade of sharply dropping totals.
Judiciary News – United States Courts
On June 27, 2022, Three Arrows Capital (“3AC”), a crypto hedge fund, commenced liquidation proceedings in the British Virgin Islands and thereafter filed recognition proceedings in, among other countries, the United States and Singapore. As we discussed earlier this year, on December 2, 2022, the bankruptcy court presiding over 3AC’s chapter 15 proceeding pending in the Southern District of New York held that the 3AC joint liquidators (the “JLs”) could serve a subpoena (the “U.S. Subpoena”) upon a 3AC cofounder, … Read the rest
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The Supreme Court on Thursday put a bankruptcy plan for Purdue Pharma, the manufacturer of the highly addictive opioid painkiller OxyContin, on hold while it reviews a challenge to the legality of the plan, which would shield the Sackler family, the owners of the drug company, from lawsuits. In the brief order the justices agreed to hear oral arguments this December in the Biden administration’s appeal of a lower-court ruling approving the plan. There were no recorded dissents.
U.S. … Read the rest
Personal and business bankruptcy filings rose 10 percent in the twelve-month period ending June 30, 2023, compared with the previous year.
Judiciary News – United States Courts