NC Rulings Show Bankruptcy Isn’t Only For Insolvent Debtors
April 18, 2024 | Stuart I. Gordon | Alexandria E. (Tomanelli) Vath | Bankruptcy

Recent bankruptcy rulings upended the notion that bankruptcy protections are only for insolvent debtors.

In two different cases, two U.S. bankruptcy judges from the U.S. Bankruptcy Court for the Western District of North Carolina reached the same conclusion: Lack of financial distress is not a requirement for bankruptcy protection, and the court has constitutional subject

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Creditors Committee’s Request to Sue Diocese Insurers Denied
November 2, 2023 | Stuart I. Gordon | Alexandria E. (Tomanelli) Vath | Bankruptcy

Recently, a bankruptcy judge denied a request by a creditors’ committee to sue the insurers of the Roman Catholic Diocese of Rockville Centre (the “Debtor”).

The judge found that the Official Committee of Unsecured Creditors’ (the “Committee’s”) request to proceed with the action was baseless since no settlement had been reached and the Committee’s entire

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Outsize Role Bankruptcy Courts Play in Mass Tort Litigation
September 19, 2023 | Stuart I. Gordon | Alexandria E. (Tomanelli) Vath | Bankruptcy

This article addresses the “Texas Two-Step” litigation strategy when it comes to bankruptcy and discusses whether this strategy of utilizing the Chapter 11 process to handle mass tort litigation claims is fair, effective and will survive the scrutiny of the courts.

Mass-tort bankruptcy cases have been capturing headlines recently. Everyday household names have sought bankruptcy

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Tide May Be Turning on Texas Two-Step Bankruptcy Strategy
July 19, 2023 | Stuart I. Gordon | Matthew V. Spero | Alexandria E. (Tomanelli) Vath | Bankruptcy

Companies facing multidistrict litigation mass tort exposure have been utilizing a new technique to protect themselves and their related entities from mass tort claims.

Known as the Texas Two-Step, this creative use of the U.S. Bankruptcy Code gives related entities the benefit of the automatic stay without those companies having to file for Chapter 11

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U.S. Supreme Court: Debts Due to Business Partner’s Fraud Non-Dischargeable
April 26, 2023 | Stuart I. Gordon | Matthew V. Spero | Alexandria E. (Tomanelli) Vath | Bankruptcy | Corporate

Earlier this year, the Supreme Court issued a decision that all business owners should be aware of. The Supreme Court resolved a Circuit split over whether a debtor can discharge a debt incurred by a fraud committed by the debtor’s business partner or agent. In a unanimous decision, the Court held that such a debt

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United States Supreme Court, Bankruptcy Update
December 8, 2022 | Matthew V. Spero | Alexandria E. (Tomanelli) Vath | Bankruptcy

The United States Supreme Court decided a bankruptcy case this year that all bankruptcy practitioners should be aware of. The Supreme Court also granted certiorari to hear an additional bankruptcy case and denied review of another.

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This article appeared in the December 2022 issue of Nassau Lawyer.

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Supreme Court Settles Debate on Passive Retention of Property
September 12, 2022 | Stuart I. Gordon | Matthew V. Spero | Alexandria E. (Tomanelli) Vath | Bankruptcy

For some time, bankruptcy courts wrestled over whether creditors violated the Bankruptcy Code’s automatic stay provision under 11 U.S.C. § 362(a)(3) by creditors’ passive retention of a debtor’s property once a debtor files for bankruptcy. Last year, in City of Chicago v. Fulton[1] the U.S. Supreme Court issued an opinion that puts this issue to

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Put Your Business on Solid Financial Footing before Hitting ‘Unpause’
May 5, 2020 | Stuart I. Gordon | Matthew V. Spero | Bankruptcy | Corporate

Due to the COVID-19 pandemic and resulting economic shutdown, we have counseled our clients about how they can protect their rights as creditors once the economy begins to ramp up again. We have also advised them on how to make sure that they do not end up in their own perilous financial situation.

Indeed, you

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Law360: Tenn. Hospital Bankruptcy May Be the First of Many
April 16, 2020 | Robert H. Iseman | Stuart I. Gordon | Bankruptcy | Health Services

Jim Lagios, Bob Iseman and Stu Gordon wrote an article for Law360 regarding the impact of coronavirus on the financial well-being of hospitals and health systems. To read the article, click on the link below.

Tenn. Hospital Bankruptcy May Be The First Of Many

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Stimulus Package Includes Bankruptcy Updates
March 30, 2020 | Stuart I. Gordon | Matthew V. Spero | Bankruptcy

The Coronavirus Aid, Relief, and Economic Security Act(CARES Act), signed by President Trump on March 27, 2020, contains key changes to the Bankruptcy Code. The CARES Act and the previously enacted Small Business Reorganization Act (SBRA) will impact consumers and small businesses that have filed, or may be faced with filing, for bankruptcy relief in

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