Does the Bankruptcy Code Need to Be Modernized for Business Restructurings?

As reported in the American Bankruptcy Institute Journal in April 2012 (Vol. XXXI, No.3), the American Bankruptcy Institute (“ABI”) has appointed a Commission, composed of experienced insolvency professionals and public officials, that will collect and analyze data, case-law and commentary on the following 13 areas: financing in chapter 11 cases; governance and supervision of chapter […]

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Patriot Coal Seeks Bankruptcy Court OK to Continue Litigation

Patriot Coal is seeking bankruptcy court permission to proceed with breach-of-contract suits the company has filed against two customers who allegedly declined to take recent coal shipments. The suits are not subject to the automatic stay initiated by the bankruptcy proceedings, Patriot argues, but objections to the motion can be filed until Aug. 2. A hearing […]

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Buffets, Inc. Emerges From Bankruptcy

Buffets, Inc., a steak-buffet restaurant company, announced that it has completed its restructuring and that it has emerged from chapter 11 reorganization, six months after its pre-negotiated filing on January 18, 2012.  Buffets currently operates 357 restaurants in 35 states. As part of the reorganization, the Company eliminated all of its outstanding pre-petition term debt, totaling […]

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Business Bankruptcy Filings Are Down Substantially

It appears that businesses are not filing bankruptcy at a pace that was predicted earlier this year, after Kodak and Hostess filed their bankruptcy cases, and following AMR‘s fourth quarter filing in 2011.  See Where Are the Tidal Waves of Chapter 11 Bankruptcies and Where Are the Bankruptcy Filings (Part II).  Indeed, in May 2012, the American […]

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Barton Doctrine Provides Limited Protection to Trustees in Bankruptcy

The Third Circuit Court of Appeals recently held that a party seeking to sue a trustee in bankruptcy must still obtain permission from the appointing bankruptcy court, but only in instances when the trustee is being sued for acts in his official capacity and not in instances when the trustee is merely continuing the business affairs of the debtor’s […]

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US Airways to Become More Involved in AMR’s Bankruptcy

On July 12, 2012, US Airways announced to the Associated Press that it is now a creditor of AMR.  US Airways spokesman, John McDonald, said his airline paid $600,000 for AMR bonds with a face value of $1 million. While purchasing a claim does qualify US Airways as a party in interest, with a right to be […]

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