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 …

In a Chapter 13 bankruptcy, also known as a wage earner’s plan, individual debtors may be permitted to retain their property, and develop a plan to repay a portion or all of their debts. A debtor will propose a repayment plan to make installment payments to creditors over a 36 to 60 month period.

A…

Preferred Communication Systems, Inc. (“PCSI” or “Debtor”) filed for chapter 7 bankruptcy before the United States Bankruptcy Court for the District of Delaware on July 28, 2021.

This bankruptcy proceeding constitutes a rare example of a debtor listing more assets than debt.  Per PCSI’s Schedules, the Debtor lists approximately $1.1 million in assets, and…