By Dan Prieto and Mark Douglas (October 6, 2021, 4:56 p.m. EDT) – This article discusses a recent opinion on structured layoffs.
In 2017, in Czyzewski v. Jevic Holding Corp., the United States Supreme Court has ruled that the Bankruptcy Code does not allow bankruptcy courts to approve distributions to creditors in a structured dismissal of a Chapter 11 case that violates the ordinary priority rules of the Bankruptcy Code without the consent of the creditors.
However, given that the court declined to express an “opinion on the legality of structured dismissals in general”, the impact of the decision on such a relief remains an open question.
In June, the US Bankruptcy Court for the Southern District of New York looked into this issue …
Stay one step ahead
In the legal profession, information is the key to success. You need to know what’s going on with customers, competitors, practice areas, and industries. Law360 provides the intelligence you need to stay an expert and beat the competition.
Access to case data in articles (numbers, filings, courts, nature of prosecution, etc.)
Access to attached documents such as briefs, petitions, complaints, decisions, requests, etc.
Create personalized alerts for specific articles and topics and more!