In Solvency Blog
Keith co-edits and contributes to the firm's In Solvency blog, which surveys the latest trends and developments in prominent cases and provides practical guidance to businesses navigating financial distress.
In the blog, our experienced practitioners offer analysis, best practices and lessons learned from court rulings in key bankruptcy matters nationwide.
Recent Blog Posts
Defining the Boundaries of Consensual Third-Party Releases – Tehum/YesCare Case Study
In 2024, the Supreme Court, in Harrington v. Purdue Pharma L.P., 603 U.S. 204 (2024), held that the Bankruptcy Code does not authorize nonconsensual third-party releases in Chapter 11 reorganization plans, meaning affected creditors cannot be forced to release claims against non-debtors without their consent. The decision specifically overturned Purdue’s Chapter 11 Plan, which attempted... Continue Reading…More
Trump Administration’s Proposed Health Care Cuts Pose Risks to Distressed Providers
Last week, the Trump administration and Congress proposed spending cuts that if enacted are likely to affect federally funded health insurance programs such as Medicaid and the Affordable Care Act (ACA). These cuts could disrupt cash flow for already vulnerable health care providers, bringing their financial problems into sharper focus as government payor programs face... Continue Reading…More
The Circuit City Landmine Redux, the Final Word (Office of the United States Trustee v. John Q. Hammons Fall 2006, LLC): Supreme Court Holds that Chapter 11 Debtors Do Not Get a Refund on U.S. Trustee Quarterly Fees Under Unconstitutional Fee Increase
As previously discussed and anticipated in prior blog posts,[1] the United States Supreme Court’s decision in Siegel v. Fitzgerald, 596 U.S. 464, 142 S.Ct. 1770, 213 L.Ed.2d 39 (2022), which struck down as unconstitutional the United States Trustee System Fund (Pub. L. 115-72, Div. B, 131 Stat. 1229) (the “2017 Act”) on the basis that... Continue Reading…More
The Post-Siegel Fallout Continues: The Supreme Court Has Accepted Certiorari to Determine Whether a Refund of Overpayments Made by Chapter 11 Debtors in Accordance with the Unconstitutional Fee Hike Under the United States Trustee Program is an Appropriate Remedy
On Friday September 28, 2023, the U.S. Supreme Court agreed to review the United States Trustee’s appeal from the Tenth Circuit Court of Appeal’s holding that the Office of the United States Trustee should refund overpayments made by chapter 11 debtors under the United States Trustee System Fund (Pub. L. 115-72, Div. B, 131 Stat.... Continue Reading…More
In re The Hacienda Company, LLC – Round 2: Bankruptcy Courts May be Available to Non-Operating Cannabis Companies to Liquidate Assets
As discussed in our earlier blog post, In re The Hacienda Company, LLC – a Flicker of Hope for Distressed Cannabis Companies: Bankruptcy May be Available to Liquidate Assets of Non-Operating Cannabis Companies | In Solvency (foxrothschild.com), Judge Neil Bason of the United States Bankruptcy Court for the Central District of California held that The... Continue Reading…More
In re The Hacienda Company, LLC – a Flicker of Hope for Distressed Cannabis Companies: Bankruptcy May be Available to Liquidate Assets of Non-Operating Cannabis Companies
Cannabis clients are often surprised to learn that the bankruptcy courts are unavailable to liquidate or reorganize most cannabis businesses. Indeed, the Office of the United States Trustee (the “UST”) has a mandate from the Department of Justice to move to dismiss cannabis-related bankruptcies when they are filed, and many courts have dismissed such cases,... Continue Reading…More
Cryptocurrency Deposits Do Not Belong to Account Holders: New York Bankruptcy Holding Severs Customers’ Right and Title to Crypto Assets Deposited in Celsius Network Earn Program Accounts
In a recent decision by Chief Judge Martin Glenn of the United States Bankruptcy Court for the Southern District of New York presiding over cryptocurrency Chapter 11 megacase, In re Celsius Network, LLC, et al., Case No. 22-10964 (MG), Judge Glenn held that crypto customers of Celsius who deposited their cryptocurrency in interest-bearing accounts under... Continue Reading…More
The Aftermath of Siegel v. Fitzgerald: The Tenth Circuit Orders United States Trustee Program to Refund Chapter 11 Debtors’ Overpayment of United States Trustee Fees
As discussed in our prior blog post entitled, “The Circuit City Landmine (Siegel v. Fitzgerald): Supremes Declare Bankruptcy Fee Hike Under United States Trustee Program Unconstitutional –What Happens Next?”, the United Supreme Court held in Siegel v. Fitzgerald, 596 U.S. ___ , 2022 WL 1914098 (Jun. 6, 2022), that Congress’s enactment of a temporary increase... Continue Reading…More
The Circuit City Landmine (Siegel v. Fitzgerald): Supremes Declare Bankruptcy Fee Hike Under United States Trustee Program Unconstitutional –What Happens Next?
By: Keith C. Owens While it is becoming increasingly rare for the Supreme Court to speak with a singular voice on virtually anything these days, bankruptcy provides a rare exception. On June 6, 2022, the Supreme Court unanimously held in Siegel v. Fitzgerald, 596 U.S. ___ , 2022 WL 1914098 (Jun. 6, 2022), that Congress’s... Continue Reading…More
Is a Postpetition Non-bankruptcy Court Order a Violation of the Automatic Stay?: The Ninth Circuit Bankruptcy Appellate Panel Provides Clarity in Recent Holding
By: Zach Williams, Associate, Fox Rothschild LLP (Las Vegas, NV) On April 5, 2022, the Ninth Circuit Bankruptcy Appellate Panel (the “BAP”) published an opinion, Censo, LLC v. Newrez, LLC, BAP No. NV-21-1125-LTF (Apr. 5, 2022), which provides a framework for addressing whether a non-bankruptcy court’s postpetition order on a pending matter violates the... Continue Reading…More
