Courts continue to grapple with issues impacting the rights of debtors, creditors and insurers in Chapter 11 cases filed by companies facing mass tort liabilities.
In an article published on August 19 in The Legal Intelligencer’s Insurance Law Special Section titled “Key Decisions Shape Mass Tort Bankruptcy Landscape,” Christopher F. Graham and Frank J. Perch, III, Partners, alongside Morgan A. Goldstein and Lina Maria Diaz, Associates, summarize key takeaways from significant cases such as Red River Talc, Boy Scouts of America (“BSA”) and more to explore ... Continue Reading
Companies facing financial difficulties often utilize Chapter 11 to help effectuate a restructuring or sale as part of a case filed in the United States Bankruptcy Court. In other instances, a company’s lender – impatient with a company’s efforts to respond to financial challenges – may apply to a United States District Court for appointment of a federal receiver for the company.
The appointment of a federal receiver is an extraordinary remedy allowed only after a judicial finding that such a step is clearly necessary to protect a lender’s interest in its collateral. Continue Reading