Bankruptcy & Restructuring News & Analysis
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.
FreshRealm: A Liquidating Plan Funded by the Customer That Left
A meal kit manufacturer lost 90 percent of its revenue to five incidents, then converted the resulting contract fight into the primary source of cash in its Chapter 11 plan
Irrevocable by Design: A Checked Box, a Confirmed Plan, and the Limits of Creditor Relief
The Third Circuit has affirmed the denial of two Boy Scouts of America abuse claimants' requests to undo their $3,500 Expedited Distribution elections, resting on plain plan language and on the statutory rule that creditors cannot modify a confirmed plan