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Critical Vendor Status in a Business Reorganization

Often a company that is involved in a formal restructuring (such as Chapter 11) has incurred pre-petition trade debt with various vendors and suppliers. Many of these vendors and suppliers are critical to the business (or at least more critical than others). For example, consider the importance ...

Creditor Opposition to a Prepackaged Chapter 11 Plan

by George E.B. Maguire and Jasmine Ball This Emerging Issues Analysis addresses creditor opposition to a prepackaged chapter 11 plan. Presented with a "coercive" prepackaged bankruptcy, there are two broad lines of defense open to an opposing creditor. First, the creditor may challenge...

Financing in a Prepackaged Bankruptcy

by George E.B. Maguire and Jasmine Ball This Emerging Issues Analysis explains how the use of a prepackaged bankruptcy creates special financing problems that must be addressed by the restructuring company. For planning purposes, the restructuring under a prepackaged bankruptcy can be divided into...

Thoughts About the Impact of Stern v. Marshall

Since the Supreme Court dropped its constitutional bombshell on the bankruptcy system last week in Stern v. Marshall , 2011 U.S. LEXIS 4791 (2011) (aka Anna Nicole Smith II), [ enhanced version available to lexis.comsubscribers / unenhanced version available from lexisONEFreeCaseLaw ] lots of people...

Cherry Picking Contract Provisions in Bankruptcy: Not So Taboo After All?

by Blanka Wolfe One of the quintessential principles of the Bankruptcy Code is that when a debtor assumes an executory contract, it must assume the contract as a whole – a debtor cannot cherry pick the contract provisions it wants to assume while rejecting others. Two recent bankruptcy court...