Bankruptcy Law News and Insights

2024 brought a number of headline stories that will impact the bankruptcy and restructuring market in 2025 and beyond. A few of those are summarized below. LMEs (Of course). Liability management exercises — sometimes referred to as "lender-on-lender violence" — continued on their growth trajectory during 2024, with restructuring advisors looking...

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Highlights A three-judge panel of the U.S. Court of Appeals for the Fifth Circuit has unanimously held that the debt exchange undertaken by Serta Simmons Bedding did not qualify as an "open market purchase" under the terms of Serta's 2016 credit agreement. Therefore, the "uptier transaction" was not permitted, with...

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In situations where a bankruptcy court avoids a fraudulent transfer or similar transaction, subsequent transferees who received proceeds of the avoided transaction from the initial transferee can avoid liability in certain circumstances. Specifically, section 550(b)(1) of the Bankruptcy Code provides that the plaintiff in an avoidance action "may not recover"...

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