Business Restructuring Review Vol. 24 No. 1 | January–February 2025
In This Issue
The Year in Bankruptcy: 2024
A brief chronicle of the year's notable developments in corporate bankruptcy and restructuring, including business bankruptcy filings, significant court rulings, and legislative developments. [read more …]
Florida Bankruptcy Court Refuses to Recognize Pre-Judgment Asset Freeze Order of Brazilian Bankruptcy Court as Being Manifestly Contrary to U.S. Public Policy
In In re Nexgenesis Holdings LTDA, 662 B.R. 406 (Bankr. S.D. Fla. 2024), the U.S. Bankruptcy Court for the Southern District of Florida, which had previously granted chapter 15 recognition to a Brazilian debtor's bankruptcy case, denied a request by the debtor's foreign representative to enforce an ex parte pre-judgment order issued by the Brazilian bankruptcy court in corporate veil piercing litigation. The ex parte order purported to freeze the assets of certain non-debtor defendants that had no contacts with Brazil and were not properly subject to the Brazilian court's jurisdiction. According to the U.S. bankruptcy court, it refused to enforce the asset freeze order under principles of international comity because the relief sought was both repugnant to U.S. law and manifestly contrary to U.S. public policy. [read more …]
Cramdown of Equity in Chapter 11 Plan Requires Assessment of Equity's Value to Satisfy "Fair and Equitable" Standard
In In re Global Fertility & Genetics New York, LLC, 663 B.R. 584 (Bankr. S.D.N.Y. 2024), the U.S. Bankruptcy Court for the Southern District of New York ruled that in cases involving a chapter 11 plan that proposes to pay all creditors in full while canceling equity interests for no consideration, the "fair and equitable" standard for cramdown confirmation requires an assessment of the value of the equity and whether the transaction is fair to equity holders. [read more …]
Filing of Adversary Proceeding Against Chapter 15 Debtor Violated Automatic Stay, and "Home Court" Rule Does Not Apply in Chapter 15 Cases
In In re Point Investments, Ltd. (In Liquidation), 2024 WL 4262832 (D. Del. Sep. 23, 2024), the U.S. District Court for the District of Delaware affirmed a bankruptcy court ruling voiding the commencement of an adversary proceeding against a chapter 15 debtor as a violation of the automatic stay and denying the creditor's request for relief from the stay. According to the district court, the "home court" rule whereby the filing of an adversary proceeding against a debtor is treated as a proof of claim (rather than a stay violation) does not apply in chapter 15 cases because, unlike in cases under other chapters of the Bankruptcy Code, there is no bankruptcy estate created in the United States by the filing of a chapter 15 petition, and a U.S. bankruptcy court does not adjudicate creditor claims in a chapter 15 case. [read more …]
Ninth Circuit: Reversal on Appeal of Order Denying Chapter 15 Recognition Does Not Retroactively Trigger Automatic Stay
It is generally recognized that an order of a U.S. bankruptcy court recognizing a debtor's foreign bankruptcy proceeding as a "main" proceeding under chapter 15 of the Bankruptcy Code triggers the automatic stay preventing creditor collection efforts against the debtor and its U.S. assets. A related question—whether the stay applies retroactively to the chapter 15 petition date after a bankruptcy court order denying chapter 15 recognition is reversed on appeal—was the subject of a ruling handed down as an apparent matter of first impression by the U.S. Court of Appeals for the Ninth Circuit. In International Petroleum Products & Additives Co. v. Black Gold SARL, 115 F.4th 1202 (9th Cir. 2024), the Ninth Circuit ruled that the automatic stay does not apply retroactively under those circumstances. [read more …]
Newsworthy
Corinne Ball (New York), Nicholas J. Morin (New York), Ben Rosenblum (New York), Christopher DiPompeo (Washington), and Andrew M. Butler (New York) were part of a team of Jones Day lawyers representing the Roman Catholic Diocese of Rockville Centre, New York, in chapter 11 cases filed by both the diocese and its 136 parishes. In reorganizing the diocese and its parishes and schools, Jones Day pioneered a "hybrid" approach to mass tort reorganizations that utilizes both traditional and "rapid" prepackaged bankruptcy processes to obtain discharges for all affiliates and organizations while providing equitable compensation to claimants. This approach, combined with the use of insurance "buy backs" and releases, resulted in the consensual reorganization of the diocese.
Jones Day's Business Restructuring & Reorganization Practice received a National Tier 1 ranking in the 2025 edition of Best Law Firms in the area Bankruptcy and Creditor/Debtor Rights/Insolvency and Reorganization Law.
Dan T. Moss (Washington/New York), David S. Torborg (Washington), and Ryan Sims (Washington) are representing Farooq Ahmad Mann, in his capacity as the foreign representative for the foreign insolvency estate of Wayne Burt Pte. Ltd., which obtained recognition of its Singaporean liquidation case under chapter 15 of the Bankruptcy Code as well as enforcement in the United States of an order issued by the Singapore High Court directing a creditor to surrender certain stock pledged by the debtor as security for a loan.
An article written by Corinne Ball (New York) titled "Distressed M&A: Mass Torts, Bankruptcy and Furthering the Search for Consensus: Another Purdue Decision" was published in the December 23, 2024, edition of the New York Law Journal.
Ben Larkin (London) earned a "Hall of Fame" ranking in the 2025 edition of Legal 500 United Kingdom in the area of Finance-Corporate Restructuring and Insolvency.
Hannah Plumb (London) was ranked in the 2025 edition of Legal 500 United Kingdom as a "Leading Associate" in the area of Finance-Corporate Restructuring and Insolvency.
Juan Ferré (Madrid) was recognized in the practice area "Insolvency and Reorganization Law" in the 2025 edition of The Best Lawyers in Spain.™
Corinne Ball (New York) was recognized by Who's Who Legal as being among the "Thought Leaders Global Elite 2025" in the field of Restructuring & Insolvency.
Dan T. Moss (Washington/New York) was recognized in the 2025 edition of Best Law Firms in the field of Bankruptcy and Creditor/Debtor Rights/Insolvency and Reorganization Law.
An article written by Genna Ghaul (New York) titled "Settlement That Skips Allocating Value to Disputed Secured Claim Did Not Violate Jevic" was published on November 23, 2024, in Lexis Practical Guidance.
An article written by Daniel J. Merrett (Atlanta) titled "Defensive Setoff Rights of Creditor that Did Not File Proof of Claim Cannot Be Extinguished Under Chapter 11 Plan" was published on November 23, 2024, in Lexis Practical Guidance.
An article written by Oliver S. Zeltner (Cleveland/Houston) titled "Imputation of Agent's Knowledge to Transferee in Bankruptcy Avoidance Litigation Defeats Good-Faith Defense" was published on November 23, 2024, in Lexis Practical Guidance.
An article written by Dan T. Moss (Washington/New York), Daniel J. Merrett (Atlanta), and Ben Rosenblum (New York) titled "Second Circuit Triples Down—Transfers Made Under Securities Contracts Are Safe Harbored in Bankruptcy if the Debtor-Transferee is a Customer of a Financial Institution" was published on November 23, 2024, in Lexis Practical Guidance.
An article written by Brad B. Erens (Chicago) titled "Third Circuit Weighs in on Make-Whole Premiums and the Solvent-Debtor Exception in Chapter 11 Cases" was published on December 5, 2024, in Lexis Practical Guidance.
Lawyer Spotlight: Carl E. Black
Carl E. Black, a partner in Jones Day's Cleveland Office, focuses on corporate restructuring, advising debtors, creditors' committees, equity sponsors, and other key stakeholders in major in-court and out-of-court cases. He has extensive experience in corporate governance, fraudulent conveyance, fiduciary duty, and mass tort, environmental, and legacy liability issues. Carl also has guided clients through spin-offs, secured financings, distressed sales and acquisitions, and ring-fencing transactions.
His vast experience extends across high-profile chapter 11 cases, handling complex corporate challenges and restructuring strategies. Notable chapter 11 debtor cases include: Alpha Natural Resources, American Apparel, Burlington Industries, Chrysler LLC, Dana Corporation, Lehman Brothers (special counsel to the debtors), LTV Steel Company, M&G Chemicals, Inc., NII Holdings, Oglebay Norton Company, St. Mary's of the Woods, and Transtar Industries.
Carl is a member of the American Bankruptcy Institute, the American Bar Association, the Ohio State Bar Association, and the Cleveland Metropolitan Bar Association. He is a fellow of the American College of Bankruptcy.
