BANKRUPTCY AND INSOLVENCY NEWS AND ANALYSIS – WEEK ENDING MAY 27, 2022

Trends and Legislative Development

Bankruptcy System Faces Government Backlash

Sales

Fifth Circuit Weighs In on Bankruptcy Asset Sales Free and Clear of Leasehold Interests

Reorganization

Bright-Line Rule: No Modification of Substantially Consummated Chapter 11 Plan

What Does ”Affiliate Of An Issuer” Mean For Subchapter V Ineligibility? (In re Phenomenon)

Bankruptcy developments in Subchapter V eligibility requirements

Middle Market Debtors Who Need Bankruptcy Relief: What To Do? (The “Nebraska Three-Step”)

Profit Motive? Not Required for Subchapter V Eligibility

Avoidance and Recovery

Sixth Circuit Holds State Court Tax Foreclosure Subject to Fraudulent Transfer Attack

Delaware Bankruptcy Court Rejects Use of Tax Code Look-Back Period in Avoidance Action

Claims

Bankruptcy Court Rejects the Predominant Purpose Test in Granting Priority Claim Status Under Bankruptcy Code § 503(b)(9)

Cross-Border

Florida District Court: Foreign Debtor Need Not Have U.S. Residence, Assets, or Place of Business to Be Eligible for Chapter 15 Recognition

The Model Law on Cross-Border Insolvency turns 25