Zone of Insolvency

Zone of Insolvency

Tag Archives: Chapter 11

A DIP of the toe into US Chapter 11 waters for Australia

Posted in Australia

On 24 September 2020, the Australian Government announced the introduction of two new restructuring and insolvency processes for small businesses (having liabilities of less than AU$1 million). It is proposed that these measures will be introduced from 1 January 2021 with a view to reducing the cost, time and complexity burden imposed on small businesses by the existing insolvency processes. The Australian Government has described the changes as “the most significant changes to the Australian insolvency framework in almost 30 years.”

The changes represent the latest in a series of measures introduced in Australia this year in response to the … Continue Reading

Chapter 11 Plan for a Group of Debtors May Be Confirmed if Approved by Creditors of a Single Debtor

Posted in US

 

In a matter of first impression at the Circuit level, the United States Court of Appeals for the Ninth Circuit held that a court may confirm a plan filed on behalf of multiple debtors that has been approved by an impaired class of creditors of only one of the debtors. JPMCC 2007-C1 Grasslawn Lodging, LLC v. Transwest Resort Properties Inc. (In re Transwest Resort Properties, Inc.), 881 F.3d 724 (9th Cir. 2018). This ruling is in contrast with the Delaware bankruptcy court’s ruling in the Tribune Company Chapter 11 case, where as successfully advocated by Norton Rose … Continue Reading

Bankruptcy Court Slaps Down Chapter 11 Filing Used as a Litigation Tactic

Posted in US

Derma PenChapter 11 of the Bankruptcy Code is designed to allow struggling companies to reorganize their debts and emerge as stronger, healthier companies or to liquidate in an orderly fashion. In either case, the company better be struggling, as made clear in a recent decision in In re Derma Pen, LLC, No. 14-11894, 2014 WL 7269762 (Bankr. D. Del. Dec. 19, 2014). In Derma Pen, the Bankruptcy Court for the District of Delaware dismissed Derma Pen, LLC’s (“Derma Pen”) chapter 11 case because it lacked a good faith attempt to reorganize or preserve value for creditors and instead was … Continue Reading

X Not Gon’ Give It To Ya: Recording Artist DMX Faces Conversion or Dismissal of Bankruptcy Proceeding

Posted in US

In today’s celebrity gossip section of the Zone of Insolvency blog, we are talking about recording artist and actor Earl Simmons, much more commonly known as DMX. DMX commenced a voluntary chapter 11 bankruptcy case on July 19, 2013. Since that time, according to pleadings filed by the U.S. Trustee for the Southern District of New York, DMX has consistently failed to provide required information or otherwise participate in his bankruptcy proceeding. This lack of cooperation has led the U.S. Trustee to seek the conversion of DMX’s chapter 11 case to chapter 7 or, alternatively, dismissal of DMX’s case.

The … Continue Reading