Milbank Represents Ad Hoc Crossover Group Of Foresight Energy In $1.1 Billion Restructuring

Milbank has successfully represented the Ad Hoc Crossover Group in the chapter 11 cases of Foresight Energy LP and its affiliated debtors. Foresight is a leading producer and marketer of thermal coal controlling nearly 2.1 billion tons of coal reserves in the Illinois Basin.

On March 10, 2020, after reaching a global restructuring support agreement with most of its first- and second-lien debtholders, Foresight filed voluntary petitions for chapter 11 relief in the US Bankruptcy […]

By | June 7th, 2020 ||

Can A Creditor Violate The Automatic Stay In Bankruptcy By Doing Nothing?

Filing a bankruptcy petition automatically halts efforts to collect pre-petition debts from the debtor outside of bankruptcy.
If a creditor wants to continue a lawsuit against a debtor outside of bankruptcy, repossess collateral, terminate a lease, set off debts, or pursue other collection efforts, it first must obtain stay relief from the bankruptcy court.  The “automatic stay” is a command to halt action, and creditors violate it at their own peril.

But what about inaction?  If […]

By | February 18th, 2020 ||

The Role Of Self-Interest In Allowance Of Substantial Contribution Claims In Bankruptcy

To encourage creditors, equity interest holders, indenture trustees and unofficial committees to take actions that benefit a bankruptcy estate, section 503(b)(3)(D) of the Bankruptcy Code confers administrative priority on their claims for expenses incurred in making a “substantial contribution” in a chapter 9 or chapter 11 case. Administrative expense status is also given under section 503(b)(4) to their claims for reimbursement of reasonable professional fees incurred in making a substantial contribution. The U.S. District […]

By | December 16th, 2019 ||