Bankruptcy & Restructuring News & Analysis — Conductor
When the Lender Is the Shareholder: A San Diego Court Builds a Section 364(c) Framework and Picks California's Fairness Standard Over Delaware's
Finding little Ninth Circuit authority on point, the court adopted a four-factor test, held that heightened scrutiny displaces the business judgment factor for insider financing, and looked to the debtor's state of incorporation to choose the applicable fairness doctrine
A Blocked Vendor Code: Noble Supply Asks Delaware to Compel the Defense Logistics Agency, and the Government Answers With Setoff
Eleven days after filing, a defense logistics supplier found its payment code blocked by its largest customer. The resulting fight produced two competing proposed orders and no agreement on what the court decided.
Latvia's Flag Carrier Files in New York: A Fuel Shock, €503.3 Million of Funded Debt, and a Fleet to Shrink
Air Baltic Corporation AS entered chapter 11 on September 14, 2026 with an operating fleet it does not own, a state shareholder holding roughly 88 percent, and a business plan that turns on returning about twenty aircraft
Sleep Number and the Non-Insider Line
A published Southern District of New York decision approves $1.825 million in retention awards to 38 employees over the objection of the United States Trustee, and sets out how the insider test and the Dana Corp. factors work when the endgame is a sale.
Alkegen’s Prepackaged Chapter 11: When the Liability Management Bridge Runs Out
A refinancing bought Alkegen maturity runway and a PIK toggle. Twenty-two months later, the company filed a prepackaged case to eliminate $3.1 billion of funded obligations on a 45-day timeline.