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Insolvency Insights

Potential Pitfalls in Critical Vendor Negotiations

In 2002 the U.S. Bankruptcy Court for the Northern District of Texas issued an opinion in the case of In re CoServ,[1] establishing a three-part test to determine whether a debtor should be authorized to pay prepetition claims of "critical" […]

Kyle Woodard

It’s Time to Talk Section 503(b)(9): A Refresher

We all know that general unsecured creditors, like holders of trade debt, often receive little to no recovery on account of the debt they are owed when a customer files for bankruptcy. Luckily, Section 503 of the Bankruptcy Code provides some relief […]

JaKayla DaBera

Fifth Circuit Avoidance Actions

On Monday, January 22, 2024, the United States Court of Appeals for the Fifth Circuit entered a ruling in the South Coast Supply Company case allowing a bankrupt debtor to sell preference claims arising under section 547 of the Bankruptcy […]

John J. Kane

Lease Termination Disputes and Bankruptcy

As the brick and mortar retail industry continues to decline, landlords are likely to engage in an increasing number of lease disputes with delinquent tenants. As we have seen over the past five years, those disputes often end up in bankruptcy court […]

John J. Kane

Beware of Third-Party Releases in Bankruptcy

Companies seeking to confirm a Chapter 11 bankruptcy plan typically include releases that discharge the bankrupt company (the debtor) from liability on claims, thereby giving the debtor a chance to emerge from bankruptcy and seek a profitable future.& […]