Bankruptcy & Restructuring News & Analysis
Vi-Jon, LLC: A Section 524(g) Restructuring in Delaware
A prenegotiated Chapter 11 that would channel 367 active talc personal injury cases into a trust funded by a guaranteed $25 million contribution from non-debtor affiliates, together with assigned insurance rights, real estate proceeds, and causes of action
Two Plans, No Approval: Baltimore Archdiocese Disclosure Statements Denied
The Maryland bankruptcy court rejected both competing disclosure statements in the Roman Catholic Archbishop of Baltimore case, finding each plan patently unconfirmable and pushing a confirmation hearing that was three years in the making off its schedule
Rabbi Trust Funds as Property of the Estate: The Sleep Number Deferred Compensation Decision
A Southern District of New York court held that approximately $17.56 million held in a rabbi trust for top hat plan participants is property of the estate under section 541(a)(1), and that equitable considerations alone do not elevate one group of unsecured creditors above another
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.