In Episode 22 of The Octus Download (available on Apple Podcasts, Spotify, Amazon Music), hosts Jason Sanjana and Kevin Eckhardt interviewed the Honorable Michael B. Kaplan, U.S. Bankruptcy Judge for the District of New Jersey, who offered a candid, practitioner‑oriented discussion on how bankruptcy courts evaluate Chapter 11 cases in real time. Over the last... Continue Reading…More

The restructuring industry held its proverbial breath following the Supreme Court’s decision in Harrington v. Purdue Pharma L.P., which invalidated the nonconsensual third-party release in the debtors’ plan.  While various courts continue to interpret the Purdue Pharma decision, New Jersey Bankruptcy Courts (the “Bankruptcy Court”) appear unified in allowing consensual third-party releases and finding that... Continue Reading…More

As many bankruptcy practitioners are aware, there is a circuit court split with respect to the allowability of non-consensual third-party releases.  Notably, in the Purdue Pharma case, the United States Court of Appeals for the Second Circuit held that bankruptcy courts have the authority to approve plans with non-consensual releases of direct third-party claims against... Continue Reading…More

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

The Fox Rothschild In Solvency blog previously covered the Supreme Court’s decision in Siegel v. Fitzgerald, 142 S. Ct. 1770 (2022), in which the 2017 amendment to 28 U.S.C. § 1930(a)(6) increasing quarterly fees payable to the United States Trustee was deemed unconstitutional.   For background, 28 U.S.C. § 1930(a)(6) provides for payment of quarterly fees... Continue Reading…More

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

In a 2021 opinion in In re Paragon Offshore PLC, 629 B.R. 227 (Bankr. D. Del. 2021) (“Paragon Offshore”), Judge Sontchi of the United States Bankruptcy Court for the District of Delaware held that a litigation trust created post-plan confirmation did not have to pay quarterly fees to the United States Trustee under 28 U.S.C.... Continue Reading…More

The Clerk of the Court (“Clerk”) is the “official custodian of the records and dockets of the bankruptcy court,” and when it appears that there will be a distribution to unsecured creditors in a bankruptcy case, the Clerk must keep a list of all claims filed.  28 U.S.C. § 156(c); Fed. R. Bankr. P. 5003(b). ... Continue Reading…More

Among the potential prolonged impacts of the COVID-19 pandemic is the interruption to supply chains throughout several critical industries.  As a result, prices have increased as various goods and materials have become difficult to obtain.  A recent Washington Post article noted that the overall consumer price index has increased by close to or above 5%... Continue Reading…More

Pursuant to 28 U.S.C. § 1930(a)(6), chapter 11 debtors must pay a quarterly fee to the United States Trustee for deposit in the United States Treasury, until the case is converted or dismissed.  The fee is based on a formula tied to the amount of disbursements made by the debtor during each quarter of the... Continue Reading…More