S.D. Texas Bankruptcy Court Finds Transactions Violated Credit Agreement, But Awards Only Unsecured Claim In Robertshaw Litigation

On June 20, 2024, Judge Christopher Lopez of the United States Bankruptcy Court for the Southern District of Texas issued a highly anticipated decision rejecting one lender’s (“Lender Defendant”) request to void a prepayment made by the borrower, Robertshaw, to Lender Defendant in December 2023. In the decision, Judge Lopez addressed a narrow contractual dispute centered around a series of liability management transactions conducted by Robertshaw and certain of its secured lenders (“Lender Plaintiffs”) […]

By | July 5th, 2024 ||

Supreme Court Invalidates Nonconsensual Third-Party Releases In Bankruptcy

On June 27, 2024, the Supreme Court issued its long-awaited decision in Harrington v. Purdue Pharma L.P. and in so doing resolved one of the most significant and contentious questions of modern bankruptcy law. At issue in Purdue was whether a court may approve, as part of a chapter 11 debtor’s plan of reorganization, the nonconsensual release of claims held by non-debtor third parties against other non-debtor third parties. Such releases—known in bankruptcy parlance as “nonconsensual third-party releases”—have been […]

By | July 2nd, 2024 ||

Impact Of Expired Debt Limit On Small Business Bankruptcies

As of June 21, 2024, the debt limit for small business bankruptcies, also known as Subchapter V bankruptcies, reverted to $3,024,725 from the temporarily increased limit of $7,500,000 established under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act). This reversion limits small and midsize businesses’ access to a streamlined and cost-effective alternative to traditional Chapter 11 filings, potentially leading to broader financial implications. Continue reading )

By | June 26th, 2024 ||