BANKRUPTCY AND INSOLVENCY NEWS AND ANALYSIS – WEEK ENDING September 15, 2023

Trends and Legislative Developments

MacroMavens’ Stephanie Pomboy sounds the alarm on corporate bankruptcies, warning it could herald financial catastrophe

August adds 57 more US corporate bankruptcies; 2023 total tops prior 2 years

Case Commencement

Non-Income Producing Properties that Never Operated may be Single Asset Real Estate Under the Bankruptcy Code

Reorganization

New York Bankruptcy Court Raises the Cost of Keeping Funded Debt: Debtor Needs to Pay Default Interest Rate in Reinstatement of Accelerated Debt

Subchapter V Trustee’s Facilitation Role (Part 6)—DUTIES & INHERENT POWERS

Small Business Owners are Entitled to Exempt Reasonable Compensation from the Bankruptcy Estate

Receiverships

Alternatives to Bankruptcy for Cannabis Companies (Part 3)

THE INTERSECTION OF RECEIVERSHIPS AND BANKRUPTCY

Avoidance and Recovery

The Third Circuit Requires Inequitable Conduct by a Higher-Priority Creditor to Equitably Subordinate its Debt to a Lower-Priority Creditor

Avoidance of an Unauthorized Post-Petition Transfer of Intellectual Property Under Section 549 of the Bankruptcy Code