Bankruptcy Law and Insolvency Law

If a debtor can pay all the money it promised to pay, should it be required to do so, despite having filed for bankruptcy? Three federal courts of appeals have said yes...

This article was first published in the October 2025 issue of the Journal of Corporate Renewal and reprinted with permission from Turnaround Management Association.

A recent decision by the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"), in the matter of In re AIO US, Inc., case no. 24-11836-CTG ("Avon"), created a split with the Fifth Circuit on the issue of whether a plan of reorganization may contain a "gatekeeping provision"