When a special purpose acquisition company burns through capital pursuing a failed deal, it often emerges from the wreckage with nothing but litigation claims. How, then, should a debtor with no operational revenue prosecute those claims? Judge John P. Mastando III addressed precisely this challenge in January 2026 in In re SPAC Recovery Co.
Creditor Rights
Third Circuit Joins Fifth and Ninth on Solvent-Debtor Exception: In re Hertz Corp.
By Carl D. Neff on
On September 10, 2024, the United States Court of Appeals for the Third Circuit issued a significant decision in In re The Hertz Corporation, No. 23-1169, addressing make-whole premiums and post-petition interest in the Chapter 11 reorganization of a solvent debtor. Writing for the panel, Judge Ambro held that (1) make-whole premiums are…