Restructuring And Bankruptcy Developments: The Supreme Court’s 2023-24 Term

The U.S. Supreme Court’s recently concluded 2023-2024 term included three decisions interpreting various aspects of the U.S. Bankruptcy Code, including the much-anticipated decision in Harrington v. Purdue Pharma, L.P., which is likely to shape the scope of Chapter 11 plans of reorganization significantly. A summary of each of these decisions, and their likely effect going forward, is below.
Harrington v. Purdue Pharma, L.P.
In its most significant bankruptcy decision of the term, the Supreme Court held in Purdue […]

By | July 12th, 2024 ||

US Bankruptcy Court Sets Precedent In Valuing Cryptocurrency Claims

The valuation of cryptocurrency assets in bankruptcy proceedings is a complex and uncertain area of law. With the rapid growth and volatility of the crypto market, bankruptcy courts have faced increasing challenges in determining the fair value of these digital assets. The recent collapse of major cryptocurrency exchange FTX has brought these issues to the forefront, forcing courts to grapple with novel questions of how to value crypto tokens in the context of a […]

By | July 11th, 2024 ||

Bankruptcy Court Rejects Settlement “Lockup” Provision

In In re Gol Linhas Aéreas Inteligentes S.A.1 Judge Martin Glenn recently held that a “lockup” provision in certain settlement agreements was unenforceable under section 1125 of the Bankruptcy Code because settling creditors were provided insufficient information regarding plan treatment and there was no “out” for settling creditors to terminate the lockup. The decision follows a similar ruling in the SAS bankruptcy case2 and provides guidance on what courts may find constitutes an enforceable postpetition lockup provision.
II. […]

By | July 8th, 2024 ||