TPC Bankruptcy And District Court Opinions Uphold Uptiering Transaction And Teach An Important Lesson On The Need For Express Lender Protections In Debt Documents

A recent U.S. District Court for the District of Delaware opinion, In re TPC Grp. Inc., provided another instance of an uptiering transaction withstanding legal scrutiny and provides further support for the view that courts generally avoid “reading-in” language not expressly stated in debt documents, especially when such documents were negotiated at arms-length by sophisticated parties. As a result of the court’s guidance, lenders may be more willing to participate in uptiering transactions or other […]

By | August 4th, 2022 ||

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 ||