Bankruptcy


Landlord Considerations When Navigating Personal Guarantees in Bankruptcy
September 20, 2024 | Stuart I. Gordon | Matthew V. Spero | Alexandria E. (Tomanelli) Vath | Real Estate, Zoning & Land Use | Bankruptcy

When a business leases commercial space, it is common practice for the landlord to request that the company provide
a personal guaranty, a protective measure taken to ensure landlords have recourse against a commercial lessee if there is a default under the lease. In this way, landlords mitigate financial losses.

A personal guaranty gives

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Zombie Companies’ Growth and Expansion: Should This Be a Surprise?
August 26, 2024 | Stuart I. Gordon | Bankruptcy

On June 7, 2024, Bernard Condon, an Associated Press reporter, authored the article, “Zombies: Ranks of world’s most debt-hobbled companies are soaring, and not all will survive.”

Condon’s article details zombie companies (Zs) so laden with debt that they are on the brink of collapse, barely able to pay even the interest on their loans. They

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Justices’ Ch. 11 Ruling Is A Big Moment For Debtors’ Insurers
July 23, 2024 | Stuart I. Gordon | Benjamin J. Wisher | Bankruptcy

In one of the most publicized terms for the U.S. Supreme Court, one June decision has not received the attention it deserves: Truck Insurance Exchange v. Kaiser Gypsum Company Inc.

Truck upends decades of Chapter 11 bankruptcy jurisprudence that often relegated a debtor’s insurer to the sidelines, even if the insurer had financial responsibility under the

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Supreme Court Rejects Purdue Pharma’s Bankruptcy Plan
July 11, 2024 | Stuart I. Gordon | Alexandria E. (Tomanelli) Vath | Bankruptcy

On June 27, 2024, the U.S. Supreme Court blocked a $6 billion bankruptcy settlement in Harrington v. Purdue Pharma L. P., No. 23-124, 2024 WL 3187799, at *11 (U.S. June 27, 2024). The Court found that the Bankruptcy Code does not support a Chapter 11 bankruptcy plan over the objection of claimants, that shields the

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Supreme Court Finds Insurers Have Standing in Chapter 11 Bankruptcy Proceedings
| Stuart I. Gordon | Alexandria E. (Tomanelli) Vath | Bankruptcy | Insurance Coverage

The U.S. Supreme Court on June 6, 2024, held that an insurer with a financial responsibility for bankruptcy claims is a party in interest and has standing to raise and be heard on issues in a Chapter 11 proceeding.

In Truck Insurance Exchange v. Kaiser Gyspum Co., Inc., et al., No. 22-1079, the Supreme Court

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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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