Worldwide: Insolvency/Bankruptcy

When a company enters Chapter 11 bankruptcy, many assume the process will culminate in a lengthy reorganization plan. However, distressed businesses are increasingly being sold through a different mechanism—a sale under Section 363 of the United States Bankruptcy Code. Understanding how Section 363 sales work can help business owners, lenders, investors, and prospective purchasers identify opportunities and avoid costly surprises in bankruptcy asset transactions.

In the latest episode of the TMA Chicago/Midwest Podcast, Katten Restructuring Partner Paul Musser interviews TMA CEO Christine Melendes about her diverse career path in association management, her early priorities since joining TMA in March, and her strategic vision for the organization's future. Their conversation explores the value of chapter involvement, the power of TMA's global network, and practical strategies for maximizing conference attendance and volunteer opportunities.

On August 4, 2026, Chief Judge Laura Taylor Swain of the U.S. District Court for the Southern District of New York issued an opinion vacating the confirmation order in Voyager Digital Holdings...

Liability management exercises (LMEs) offer companies facing financial pressure an alternative to formal bankruptcy, but their tax consequences can significantly impact long-term value creation. Understanding how different LME structures affect cancellation of indebtedness income, tax attributes, and future deductions is essential for stakeholders evaluating out-of-court debt restructuring options.

A recent bankruptcy court decision highlights critical lessons for secured creditors about the difference between having access to cash collateral and actually holding it as security. The case demonstrates how inadequate documentation and commingling of funds can result in the complete loss of a substantial secured claim, even when the creditor believed it had proper protections in place.

The U.S. Court of Appeals for the Third Circuit recently affirmed a debtor's eligibility to proceed under Subchapter V of Chapter 11 and the ability to confirm a reorganization plan settling potential fraudulent transfer claims against insiders.

A U.S. Bankruptcy Court has awarded $261.13 million in damages plus six years of prejudgment interest against participating lenders in Serta's 2020 uptier transaction, marking the first successful court challenge to a common liability management exercise. The ruling found that privately negotiated debt exchanges do not qualify as "open market purchases" and that lenders breached pro rata sharing provisions by receiving payments without offering participation to all lenders. This precedent-setting decision r

A U.S. Bankruptcy Court has ruled that participants in Serta Simmons' 2020 uptier transaction breached their credit agreement's pro rata sharing provision by receiving new first-lien second-out debt without...

This monthly newsletter examines critical developments in tort law, bankruptcy discharge limitations, judicial recusal procedures, and consumer protection litigation. From a Louisiana bankruptcy court's ruling on unknowable product liability claims to the California Supreme Court's restrictions on judge removal, these cases reveal evolving standards that impact litigation strategy across multiple practice areas.