David Kuney Discusses Special Issues in Chapter 11 Cases Involving Real Estate Businesses.

On this edition, David R. Kuney of Sidley Austin LLP discusses some of the key legal issues that arise in real estate Chapter 11 cases. He touches on how bankruptcy cases have changed over the years, developments in the new value exception to the absolute priority rule, the impact of several recent cases...

Absolute Priority Rule Absolutism? Strict Interpretation of Bankruptcy Code Cramdown Provisions Nearly Causes Hawker Beechcraft Plan Confirmation to Skid Along the Runway

By nearly any measure, the Chapter 11 cases of Hawker Beechcraft and its affiliates (the "Debtors") stand as a significant success. The cases began as a standalone reorganization predicated upon a restructuring support agreement (the "RSA") among the Debtors' senior lenders...

Chief Judge Easterbrook Writes That Free Market Competition Trumps Equity's Attempted Free Lunch Under the New Value Exception to the Absolute Priority Rule

A 7 th Circuit opinion authored by Chief Judge Easterbrook last week had me again looking across the street at 203 North LaSalle and wondering whether the US Supreme Court will ever finally decide whether there is a "new value" exception to the absolute priority rule (which requires that...

Fifth Circuit Finds That Absolute Priority Rule Applies in Individual Chapter 11 Cases

Joining the Fourth and Tenth Circuits, the Fifth Circuit has ruled that BAPCPA did not implicitly repeal the absolute priority rule in individual chapter 11 cases. Matter of Lively , No. 12-20277 (5th Cir. 5/29/13), which can be found here [ an enhanced version of this opinion is available to lexis.com...