On August 21, 2025, Judge Craig T. Goldblatt of the United States Bankruptcy Court for the District of Delaware issued a significant ruling in In re AIO US, Inc. (the Avon Products bankruptcy) that rejected a “gatekeeping” provision in a proposed Chapter 11 plan. The court held that neither the Bankruptcy Code nor the Barton…

On August 29, 2025, the Delaware Bankruptcy Court issued a dismissal order in In re Bedmar, LLC that stands as one of the clearest applications of the “manufactured bankruptcy” doctrine to emerge from the post-Third Circuit landscape. Judge J. Kate Stickles dismissed the Chapter 11 case under Section 1112(b) for lack of good faith, finding…

When personal injury attorneys face a defendant who files for bankruptcy, progress on the case suddenly halts as the automatic stay takes effect. While obtaining relief from the stay is the first challenge (as discussed in my previous article), understanding the insurance coverage landscape is equally critical. Most successful stay relief negotiations involve limiting…

The letter decision, issued by Judge Laurie Selber Silverstein of the United States Bankruptcy Court for the District of Delaware on December 16, 2024, addresses a Motion to Allow Late-Filed Proof of Claim in the Boy Scouts of America bankruptcy case. The movant, identified only as “J.C.,” sought permission to file a late claim…

In the recent decision of FI Liquidating Trust v. The Terminix International Company Limited Partnership, Civ. No. 23-1233 (D. Del. Oct. 29, 2024), the United States District Court for the District of Delaware reversed and remanded a bankruptcy court’s summary judgment ruling in a preference action. The case involved the FI Liquidating Trust (formed…

PetroQuest Energy Inc., a Louisiana-based oil and gas exploration company, has filed for bankruptcy in Delaware with $115.5 million in debt ($104.5 million secured, $11 million unsecured). This marks their second bankruptcy filing, having previously emerged from Chapter 11 in 2019. The company, which was founded in 1998 and focuses on oil and natural gas…

Oya Renewables, a Boston and Toronto-based solar infrastructure developer founded in 2009, has initiated Chapter 11 bankruptcy proceedings in Delaware. The company faces financial obligations between $100-500 million, including $86.8 million in secured debt, while maintaining minimal cash reserves of just $58,000.

The company’s downfall stems from multiple challenges, according to Chief Restructuring Officer John…

In a decision emphasizing the finality of confirmed Chapter 11 plans, the United States Bankruptcy Court for the District of Delaware denied a motion by Virgin Orbit equity holders to revoke the plan confirmation order in Virgin Orbit, L.L.C., 659 B.R. 36 (Bankr. D. Del. 2024). The case presents an instructive lens on…

In a positive decision for trade vendors and non-debtor suppliers, the Eleventh Circuit, in Auriga Polymers Inc. v. PMCM2, LLC, held that a Section 503(b)(9) post-petition priority payment received by a creditor for goods received during the 20 day period before the petition date did not diminish its subsequent new value preference defense.  40 …