Jevic Holding:  The Supreme Court Puts an End to Non-Consensual Structured Dismissals That Violate Bankruptcy Code Priority Scheme Yesterday, the Supreme Court issued is highly awaited ruling in Czyzewski et al. v. Jevic Holding Corp. et al.  The Jevic case presented the question whether bankruptcy courts may approve non-consensual structured dismissals that vary the distribution scheme established by the Bankruptcy Code.  With Justice Breyer writing for the majority, the Court held that bankruptcy … Continue Reading
What You Do Won’t Help (But What You Can’t Do Might): The Sixth Circuit Clarifies Defenses to Fraudulent Transfers In Meoli v. The Huntington National Bank (In re Teleservices Group, Inc.), the U.S. Court of Appeals for the Sixth Circuit examined the elements of “good faith” and “knowledge of the voidability of the transfer avoided” that initial and subsequent transferees must establish when defending against fraudulent transfer claims brought under sections 548 and 550 … Continue Reading
Does a Super-Priority Claim Remain Superior Through a Conversion to Chapter 7? One Bankruptcy Court Says Yes. In a recent decision in In re Packaging Systems, LLC, the Bankruptcy Court for the District of New Jersey ruled that a lender that held a “super-priority” administrative expense claim under section 364(c)(1) of the Bankruptcy Code was still entitled to its super-priority status even after the debtor’s case converted to chapter 7.  The decision may … Continue Reading