Three Arrows Capital Co-Founder Avoids Contempt and Sanctions in United States, But Bankruptcy Court Previews Worldwide Enforcement Options

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

Justices put Purdue Pharma bankruptcy plan on hold

Justices put Purdue Pharma bankruptcy plan on hold

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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

Government seeks clarity on remedy after recent bankruptcy decision

Government seeks clarity on remedy after recent bankruptcy decision

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The Petitions of the Week column highlights a selection of cert petitions recently filed in the Supreme Court. A list of all petitions we’re watching is available here.

Last summer, the Supreme Court ruled in Siegel v. Fitzgerald that a 2017 law permitting debtors in bankruptcy proceedings in North Carolina and Alabama to pay lower administrative fees than those paid by debtors in other states violated the Constitution’s requirement that Congress provide uniform bankruptcy laws nationwide. That decision … Read the rest

Justices dubious of creating “extra-special super-super clear statement rule” to exempt tribes from obligation to respect bankruptcy process

Justices dubious of creating “extra-special super-super clear statement rule” to exempt tribes from obligation to respect bankruptcy process

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Monday’s arguments in Lac du Flambeau Band v. Coughlin revealed a bench deeply skeptical of the argument that Native American tribes should be exempt from the automatic stay of the Bankruptcy Code even though the federal and state governments are not.

The case involves an online payday lending operation of the Lac du Flambeau Band of Lake Superior Chippewa Indians. Brian Coughlin borrowed money from the Band’s lending operation. When he then filed for bankruptcy the Band ignored the … Read the rest