Key Insights and Strategies from the July-August 2024 Business Restructuring Review
The recent developments in the field of business restructuring have brought forth key insights and strategies that are shaping the landscape of bankruptcy law. From U.S. Supreme Court rulings to circuit splits and international implications, the business restructuring arena is witnessing significant changes that impact stakeholders across various sectors.
U.S. Supreme Court Bankruptcy Update
The U.S. Supreme Court’s recent rulings on bankruptcy cases have addressed critical issues that have far-reaching implications for businesses and creditors. From the validity of nonconsensual third-party releases in chapter 11 plans to the standing of insurance companies in objecting to certain plans, the decisions handed down by the highest court in the land are shaping the future of bankruptcy law in the United States.
Ohio Bankruptcy Court’s Guidance on Ordinary Course Payment Preference Defense
In a recent case before the U.S. Bankruptcy Court for the Southern District of Ohio, the court provided guidance on the amended section of the Bankruptcy Code that shields transfers made in the ordinary course of business from avoidance. The court’s ruling clarified the burden of proof for preference defendants, emphasizing the importance of the 2005 amendment in determining the applicability of the ordinary course payment defense.
Seventh Circuit’s Interpretation of the Bankruptcy Code’s “Safe Harbor” for Securities Contracts Transfers
The Seventh Circuit’s ruling on the application of the Bankruptcy Code’s “safe harbor” provision to non-public securities transfers has sparked debate and controversy. By affirming a district court ruling that broadly construed the safe harbor to bar certain avoidance actions, the Seventh Circuit has set a precedent that will impact future bankruptcy cases involving securities contracts transfers.
These developments underscore the complexity and evolving nature of bankruptcy law, highlighting the need for stakeholders to stay informed and adapt to the changing legal landscape. From circuit splits to international implications, the business restructuring review provides valuable insights and strategies for navigating the challenges of bankruptcy law in today’s global economy.
