Liquidating Chapter 11 Debtor Excused From Providing WARN Act Notification Of Employee Layoffs Due To Pandemic Natural Disaster

Large employers intending to lay off a significant number of their employees are required by the Worker Adjustment and Retraining Notification Act of 1988 (the “WARN Act”) to give the targeted employees 60 days’ advance notice of the layoffs. However, there are certain exceptions to the notice requirement in cases where the employer is a “faltering business” or a “liquidating fiduciary,” or where “unforeseeable business circumstances” or a “natural disaster” make it impracticable or […]

By | July 29th, 2022 ||

U.S. Supreme Court Bankruptcy Roundup

On June 6, 2022, the U.S. Supreme Court issued a much-awaited decision, Siegel v. Fitzgerald, No. 21-441, __. U.S. __, 2022 WL 1914098 (U.S. June 6, 2022), holding unconstitutional certain aspects of Congress’s 2017 amendment to 28 U.S.C. § 1930(a)(6) (the “2017 Amendment”). The 2017 Amendment dramatically increased the quarterly fees charged by the United States Trustee (“UST”) in chapter 11 cases.

The roots of this dispute go back to the creation of the UST program […]

By | July 12th, 2022 ||

Passage Of Bankruptcy Threshold Adjustment And Technical Corrections Act

Congress has made some small but important changes to the Bankruptcy Code through its enactment of the Bankruptcy Threshold Adjustment and Technical Corrections Act (the “Act”) on June 21, 2022. The most important of these are the increases in the debt limits for debtors under chapter 13 and under the Small Business Reorganization Act (the “SBRA”)—increases that will continue for at least two years.

First, the Act reinstates the debt limit for debtors to qualify […]

By | July 3rd, 2022 ||