News & Publications

In Svenhard's Swedish Bakery v. United States Bakery, Bk. No. 19-15277, 2023 WL 5541420 (9th Cir. Aug. 29, 2023), the Ninth Circuit held that a settlement agreement that resolved an employer's withdrawal liability to a multiemployer pension fund was not an executory contract that could be assumed and assigned to a third-party when that employer subsequently filed for bankruptcy. The decision is instructive for multiemployer funds and employers that negotiate settlement agreements to resolve these types [...]

In his latest article for The Bankruptcy Strategist,titled "Dip Financing and Liens On Avoidance Actions," Schulte Roth & Zabel of counsel Michael L. Cook discusses the Eight Circuit's recent decision in In re Simply Essentials, LLC. The Eighth Circuit held that "avoidance actions [e.g., preferences, fraudulent transfers] can be sold as property of the [Chapter 7 debtor's] estate." In re Simply Essentials, LLC, 2023 WL 5341506, *1 (8th Cir. Aug. 21, 2023). On a direct appeal from the [...]

"Don't worry about extending credit to the debtor during Chapter 11. You'll have an administrative claim." True but not fully. Claims that arise during the bankruptcy case from goods or service received by the debtor during bankruptcy have an administrative claim. But it is the rule that a lender to the debtor will require a super priority administrative claim as a condition to making loans to the debtor (called "DIP" loans). This means that, if [...]