SOUTHBAY LAW FIRM – INDUSTRY NEWS – WEEK ENDING April 6, 2024

Trends and Legislative Developments

Recent Bankruptcy Court Decision Leaves the Door Open to Bankruptcy Relief for Those in the Cannabis Industry

Bankruptcy Filings Increase Across All Chapters in First Quarter 2024 – Commercial Chapter 11s Up 43 Percent

Early Stage Capital Raising Trends in Chapter 11 Reorganizations

Business Bankruptcies Jump as Slowof Failure Speeds Up

Out-of-Court

Corporate Insolvency: Why are directors afraid of help? Preliminary study on the stigma associated with corporate insolvency

Assignments for the Benefit of Creditors – an often-overlooked state law alternative to Chapter 7 bankruptcy 

Case Commencement

Civil Judge Shopping Reform:  What Can We Learn on Bankruptcy?

Estate

Texas Bankruptcy Court: Debtor’s Non-Economic Rights Under LLC Agreement Are Estate Property Protected by Automatic Stay 

Texas Bankruptcy Court Holds That Bankruptcy Code Overrides Delaware Limited Liability Company Act

Reorganization

Corporate Debtors in Subchapter V Are Not Subject to Discharge Exceptions

Mastering Pivots & Turnarounds: #1 Lesson From Under Armour, Hertz & Apple

Changes to Confirmed “Toggle” Chapter 11 Plan Required No Additional Disclosure and Voting Where Creditors’ Rights Not Materially and Adversely Affected

Keeping It in the Family: Bankruptcy Court Discusses Factors for Application of New Value Exception to Absolute Priority Rule

Terms of Confirmed Chapter 11 Plan Prohibit Malpractice Claim Against Debtor’s Counsel

Sales

The Fifth Circuit Joins the Eighth and Ninth Circuits in Holding that Avoidance Actions are Estate Property that may be Sold Pursuant to Section 363 of the Bankruptcy Code 

Avoidance and Recovery

Companies Adopting Officer Exculpation Amendments to Corporate Charters 

Third Circuit: Bankruptcy Court Lacks Discretion to Deny Examiner Appointment Motion in Large Chapter 11 Cases

Bankruptcy Court Holds that Bankruptcy Rule 9006(b) Permits Bankruptcy Courts to Extend Statutes of Limitations

Cross-Border:

Recent Developments in Cross-Border Insolvency Cases