News & Publications

Section 503(b)(9) of the Bankruptcy Code gives a massive boost to creditors that sold goods to a financially distressed customer shortly before the customer's bankruptcy filing. While claims for goods sold before a bankruptcy filing are typically treated as general unsecured claims that often receive pennies on the dollar (or less!) in bankruptcy, section 503(b)(9) grants administrative expense priority to claims for goods sold and delivered during the 20 days before the bankruptcy filing—significantly increasing [...]

As the current business cycle swings into volatile territory across the country, sponsors, lenders, and management teams will be faced with difficult choices in how to maximize value from troubled businesses. Amid declining consumer sentiment, investors weary of a recession, higher interest rates, and increased counterparty risk, creative solutions should and uncommon strategies should not be left off the table. For non-retail companies facing financial distress, the traditional wisdom is that the value-maximizing solution is to reorganize. [...]

The following article compares In re Great Lakes Quick Lube L.P., 816 F.3d 482 (7th Cir. 2016), where the Seventh Circuit Court of Appeals ruled that a commercial lease termination –constitutes a fraudulent transfer – and In re Pazzo Pazzo, Inc., No. 21-2344, 2022 WL 17690158 (3d Cir. Dec. 15, 2022), where the Third Circuit Court of Appeals ruled otherwise. Commercial Lease Termination in the Seventh Circuit Both courts of appeals examined whether the commercial lease terminations [...]