BANKRUPTCY AND INSOLVENCY NEWS AND ANALYSIS – WEEK ENDING APRIL 1, 2022

Trends and Legislative Analysis

ANALYSIS: Expanded Subchapter V Access Rides Off Into the Sunset

Preoccupied Congress Fails to Act, Sending Debt Limit Back Down to $2.7 Million and Reducing Availability of Subchapter V Protection for Small Businesses

Sun Sets on Increased Subchapter V Debt Limit for Now

The Setting Of The Sun: Subchapter V Eligibility

Notice to the Bar and Public Regarding Expiration of CARES Act Bankruptcy Provisions (03/28/2022)

A Day Late and Nearly $5 Million Short?: Legislation Introduced to Make Permanent the $7.5 Million Subchapter V Debt Limit As Temporary Extensions Sunset

U.S. Bankruptcy System Faces Government Pushback Over New Corporate Tactics

Are Judges Randomly Assigned to Chapter 11 Bankruptcies? Not According to Hedge Funds

The Proposed 2022 Amendments to the Uniform Commercial Code: Digital Assets

Avoidance and Recovery

A Growing Circuit Split: Does the IRS Have Sovereign Immunity from Fraudulent Transfer Claims under 11 U.S.C. § 544(b)(1)?

Lender Liability Is Not Dead: A Recent Case Presents a Warning for Lenders (and a Roadmap for Borrowers)

4th Circuit Holds Tax Penalty Obligations Are Not Voidable Fraudulent Transfers

Reorganization

Modification of Secured Loan under Cram-Down Chapter 11 Plan Warranted Due to Plan Feasibility Threat

Confirmation Denied: Chapter 11 Plan Did Not Satisfy New Value Exception to Absolute Priority Rule Without Market Testing

Southern District of New York and Eastern District of Virginia Curtail the Use of Non-Consensual Third-Party Releases in Plans of Reorganization

The (Third) Party’s Over? Recent Decisions Cast Doubt on the Continued Vitality of Third Party Releases in Chapter 11 Reorganizations

‘UNIMPAIRMENT’ UNDER CHAPTER 11: MORE THAN JUST A NON-WORD

Cross-Border

Two Recent Chapter 15 Cases Clarify Just How Low the Bar Is for Recognition

Cross-Border Bankruptcy Update: Bad Faith Not a Basis for Denying Chapter 15 Recognition

Must Foreign Debtors Have U.S. Property to be Eligible for Relief under Chapter 15?

Far and Wide: Bankruptcy Court’s Expansive Definition of “Property” Under Section 109(a)

Cases of Interest

LARIAT COMPANY, INC. V. WIGLEY (IN RE WIGLEY)