BANKRUPTCY AND INSOLVENCY NEWS AND ANALYSIS – WEEK ENDING February 10, 2023

Trends and Legislative Developments

Bankruptcy Filings Drop 6.3 Percent

Case Commencement

In re LTL Management, LLC: Third Circuit Holds Texas Two-Step Bankruptcy Not Filed in Good Faith When Debtor is Not in Financial Distress

Put down your fiddle: Third Circuit halts Johnson & Johnson’s Texas two-step

Third Circuit Dismisses J&J Bankruptcy Case for Lack of Good Faith

Texas “Two-Step” Forward, Three Steps Back for Mass Tort Debtors in the Third Circuit After LTL

Third Circuit Dismisses LTL Mass Tort Chapter 11 Cases, Rejecting Johnson & Johnson’s “Texas Two-Step” Bankruptcy Strategy

Reorganization

When “Projected Disposable Income” Means “Actual Disposable Income”—And How U.S. Supreme Court Disagrees

Avoidance and Recovery

Seventh Circuit Overturns Bankruptcy Precedent, Finds Transfer Occurs When Money is Paid

Cross-Border

US Bankruptcy Court dismisses Ch. 15 case, bars foreign representative from appearing before it

Fifth Circuit requires Chapter 15 debtor to litigate in Texas state court