Bankruptcy Law News and Insights

On Sept. 10, 2024, the US Court of Appeals for the Third Circuit struck down a Delaware bankruptcy court ruling that a solvent debtor could pay its noteholders' interest at the lower federal judgment rate (a codified and typically lower interest rate), as opposed to a higher contract rate, and...

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In late June the Supreme Court handed down Harrington v. Purdue Pharma L.P. a 5-4 decision in which the court made clear the decades-long practice of shielding non-debtors from future claims in exchange for their financial contribution to creditors' recovery in a Chapter 11 bankruptcy plan was no more. The Sackler family—who...

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The U.S. Trustee has recently taken the position that GUC Trusts (creditor trusts formed under bankruptcy plans) should be required to pay fees on account of their own disbursements to creditors. The outcomes in three recent bankruptcy cases highlight different approaches to addressing the U.S. Trustee's argument: closing bankruptcy cases...

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