Claims

Bankruptcy judges will discuss the most talked-about current events and controversial opinions in the insolvency world with ABI Editor-at-Large Bill Rochelle.

This panel will cover how to serve notice in a bankruptcy proceeding and will explain the difference between a contested proceeding and a simple notice under Rule 2002. The panelists will discuss how a notice can also become a contested proceeding by virtue of notice. Sounds confusing? It isn’t, yet it is incredibly important to ensure that due process is followed. You may have a lengthy list of creditors in your client’s chapter 13 case, but if only 15 creditors file claims, why should the remaining creditors be noticed after the claims deadline has passed? The panelists also will discuss the rules we now have that allow for limited noticing and limited titling under Rule 7004(b)(3).

Sponsored by Holland & Knight LLP

Two pairs of judges square off to consider (1) whether bankruptcies can be properly filed when a debtor faces a deluge of potential tort claims and (2) whether bankruptcy courts can support plans regarding certain special fee and financing arrangements for debtors. RESOLVED: That a bankruptcy is filed in good faith where the debtor is not otherwise in immediate financial distress and appears to have the liquidity to pay its creditors in full, but where the case is filed because of the debtor is a defendant facing a deluge of tort claims that could at some point threaten the debtor’s business and where the debtor believes that the mechanism for liquidating those claims through a trust created under a plan of reorganization will be fairer and better for all parties than the results that would otherwise obtain in the tort system. RESOLVED: That a bankruptcy court may approve a DIP financing agreement that incorporates the milestones set out in a restructuring support agreement, that provides that (a) the debtors will propose a plan that provides specified treatment to the Supporting Parties, which treatment is materially the same as the plan provides to similarly situated creditors; (b) obligates the Supporting Parties to vote in favor of the debtor’s plan and to vote against any competing plan; and (c) provides that the Supporting Parties (and only the supporting parties) will provide exit financing to the Reorganized Debtors, at rates and fees that exceed prevailing market terms.

This panel will discuss Code impairment and post-petition interest, provide an update on gerrymandering (including a examination of Consolidated Land Holdings LLC), and review third-party releases and the different outcomes that have occurred in different circuits.

In today’s bankruptcy world, most major cases involve at least one pre-petition class action. This panel will focus on the distinction between mass tort claims and other types of class actions, recent case law addressing the proper procedures for asserting class claims, the allowance of class claims and compensation of class counsel, and the final resolutions of class claims, either by way of settlement or pursuant to plans. Other cutting-edge issues surrounding class claims also will be discussed.

Bankruptcy Judges Elizabeth Brown and Michael Romero will discuss the year’s widest splits and most controversial opinions with ABI Editor-at-Large Bill Rochelle.