In an anticipated decision, on May 30, 2023, the Second Circuit Court of Appeals issued its decision approving a Chapter 11 plan’s inclusion of a nonconsensual release of direct claims against non-debtor third parties.
Continue Reading Second Circuit Approves Nonconsensual Third-Party Release in Purdue Pharma Case: Where Do Third Party Releases Stand Now?
Third Circuit Dismisses Talc Bankruptcy
On Monday, January 30, 2023, the Third Circuit in In re LTL Management, LLC ordered debtor LTL Management, LLC’s chapter 11 petition dismissed for failure to demonstrate that the petition was filed in good faith pursuant to the Bankruptcy Code.
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Inflation + Customer/Vendor Contracts = Bankruptcy?
Over the last two years, courtesy of a once-a-century pandemic, government-mandated business closures, nationwide stay-at-home orders, and—unprecedented—disruptions to the global supply chain have illuminated, previously unknown, vulnerabilities across a whole host of industries. Would anyone have seriously questioned the viability of office space two years ago? Now, inflation, in keeping with the recent chaos, may be upending the viability of another tried-and-tested institution: the supply contract.
Continue Reading Inflation + Customer/Vendor Contracts = Bankruptcy?
Courts Begin Interpreting New Due Diligence Requirements for Trustees Before Filing Preference Actions
In an underreported amendment to the Bankruptcy Code, the Small Business Reorganization Act amended §547(b) of the Code to add an explicit requirement for the bankruptcy trustee or debtor in possession to conduct “reasonable due diligence” before filing a preference action.
Continue Reading Courts Begin Interpreting New Due Diligence Requirements for Trustees Before Filing Preference Actions
With Retail Bankruptcies on the Rise, Opportunities for Distressed M&A Increase
While there were already a number of high profile retail bankruptcies in 2019, current economic conditions and pandemic-related market challenges have exacerbated an already difficult retail environment, which has led to a significant increase in bankruptcies in 2020.
Continue Reading With Retail Bankruptcies on the Rise, Opportunities for Distressed M&A Increase
Bankruptcies on Ice: Retailers Obtain Further Extensions of Stay Orders Through the End of May
The COVID-19 pandemic has wreaked havoc on retailers in an already battered industry. Commencing in mid-March, governors from a majority of states issued executive orders requiring nonessential businesses to close to combat the spread of COVID-19. Retailers who rely on foot traffic to support their businesses felt a swift and severe impact. Retailers who recently had filed bankruptcy under chapter 11 had their reorganization efforts disrupted in unprecedented fashion.
Continue Reading Bankruptcies on Ice: Retailers Obtain Further Extensions of Stay Orders Through the End of May
2019 Retail Industry Year in Review
Innovation and developments in technology bring both opportunities and challenges for retailers, and Hunton Andrews Kurth has a sophisticated understanding of these issues and how they affect retailers. On January 23, 2020, our cross-disciplinary retail team, composed of over 200 lawyers, released our annual Retail Industry Year in Review.
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Thinking Outside the (Big) Box
Bankruptcy filings of big box retailers such as Sears, Shopko and Charming Charlie have left landlords with difficult space to fill, especially at a time when few retailers are looking to expand and open new brick-and-mortar stores.
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In Mission Product Holdings, Supreme Court Decides That Trademark Licensee’s Rights Are Not Revoked by Licensor’s Rejection of a Trademark License in Bankruptcy
Recently, in Mission Product Holdings v. Tempnology LLC, the Supreme Court held that a trademark licensee may continue using a licensed trademark after its licensor files for bankruptcy and rejects the relevant license agreement. While a debtor-licensor may “reject” a trademark license agreement under Section 365 of the Bankruptcy Code, such rejection is only a breach of the agreement and does not allow the licensor to revoke the licensee’s rights.
Continue Reading In Mission Product Holdings, Supreme Court Decides That Trademark Licensee’s Rights Are Not Revoked by Licensor’s Rejection of a Trademark License in Bankruptcy
Hunton Partner Speaks on Challenges Faced by Restaurant Industry
Hunton Andrews Kurth restructuring partner J.R. Smith joins the latest installment of Debtwire’s Middle Market Podcast to discuss challenges faced by the restaurant industry, particularly the casual dining franchise space.
Continue Reading Hunton Partner Speaks on Challenges Faced by Restaurant Industry