On Bankruptcy and Mediation
By: Donald L Swanson Defendant “seriously breached her fiduciary duties” as a member of the Official Committee of Unsecured Creditors. Naylor v. Farrell (In re Farrell), 610 B.R. 317, 323 (Bkrtcy.C.D.Cal. 2019). Facts Here’s what happened: Defendant failed to play by the rules. Debtor filed a voluntary Chapter 11 bankruptcy. Debtor and and his spouse (the... Continue Reading →
Their ability to hunker down and survive is dependent, first and foremost, on the continuing availability of cash.
Economic fallout from the corona virus will leave many formerly-successful businesses in financial stress.
There is “no federal general common law.”
The Fifth Circuit follows what it describes as “the monolithic mountain of authority” in holding that the Bankruptcy Code—not the reorganization plan—defines the limits of claims.
Practitioners need to constantly evaluate their local mediation customs to assure that better practices are identified and incorporated.
Wet ink and paper retention requirements are a flawed relic of manual systems past. It’s time to move this relic into the highly-secure digital world.
The SBRA exists today because small businesses have had difficulty getting plans confirmed under chapter 11.
Since the obvious intent of Congress is to help small businesses in financial stress and to abbreviate their Chapter 11 process, courts will try to avoid roadblocks when they can.
The absolute priority rule is still an impediment to reorganizing medium-size businesses in Chapter 11.
