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Adam Levitin
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I was really struck by a line in the Purdue Pharma plan objection of the Distributors, Manufacturers and Pharmacies (DMP). They called the Sacklers mere "out-of-the-money shareholders." That's 100% accurate. And it has important implications, one of which is in... Continue reading
Posted 2 days ago at Credit Slips
Purdue Pharma continues to peddle some malarkey about why it filed for bankruptcy in White Plains, New York. In response to my House Judiciary testimony yesterday, Purdue told the Stamford Advocate: Purdue Pharma Inc., the general partner of Purdue Pharma... Continue reading
Posted 2 days ago at Credit Slips
In the wake of today's House Judiciary Committee hearing, I got a text from an attorney who pointed out that if the Sacklers themselves filed for bankruptcy, creditors could raise non-dischargeability challenges under section 523, including for "willful and malicious... Continue reading
Posted 3 days ago at Credit Slips
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The Department of Justice appears to be mumbling out of both sides of its mouth in the Purdue Pharma bankruptcy. On July 19, DOJ filed a "statement" regarding the release of the Sacklers. Not an "objection," but a statement that... Continue reading
Posted 4 days ago at Credit Slips
I'm testifying before the House Judiciary Committee on Wednesday at a hearing entitled "Confronting Abuses of the Chapter 11 System." My written testimony can be found here. It touches on six topics: Non-debtor releases Judge-picking Lack of appellate review (especially... Continue reading
Posted 5 days ago at Credit Slips
There's a new fad in fraudulent transfers. It's called the Texas Two-Step. Here's how it goes. A company has a lot of tort liabilities (e.g., asbestos, talc, benzene, Roundup). The company transforms into a Texas corporate entity (the particular type... Continue reading
Posted Jul 19, 2021 at Credit Slips
The 2d Circuit this week joined the 5th and 10th Circuits in holding that the discharge exception in 11 U.S.C. § 523(a)(8)(A)(ii) for "an obligation to repay funds received as an educational benefit, scholarship, or stipend" doesn’t cover private student... Continue reading
Posted Jul 16, 2021 at Credit Slips
The Sacklers decided not to proceed with their threatened sanctions motion. Their counsel wrote to the case distribution list: After having heard from several parties that the motion served yesterday may be counterproductive to the deal, we are withdrawing the... Continue reading
Posted Jul 16, 2021 at Credit Slips
Judges sometimes have to recuse themselves from hearing cases because of financial or personal interests. Some of those conflicts can be spotted in advance, and judges will have standing recusal lists filed with the clerk of the court to keep... Continue reading
Posted Jul 15, 2021 at Credit Slips
Every time I think the Purdue Pharma bankruptcy couldn't get crazier, it does. The latest development is that some of the Sacklers (the Raymond branch) are seeking sanctions against five of the holdout non-consenting states for allegedly false statements in... Continue reading
Posted Jul 15, 2021 at Credit Slips
I have an op-ed out in The Hill about who should control consumer financial data. Consumer financial data is basically the most valuable type of consumer data you can find because it is so easy to monetize. Not surprisingly, banks... Continue reading
Posted Jul 6, 2021 at Credit Slips
Another recent Purdue docket item caught my notice. It is an order approving a settlement between Peter Jackson, the parent of a teenage opioid overdose victim, and Purdue and the Personal Injury Ad Hoc Committee regarding discovery requests that Purdue... Continue reading
Posted Jul 3, 2021 at Credit Slips
"[Y]ou don't get to choose your judge." That's what US District Judge Colleen McMahon wrote to Purdue Pharma, in response to an ex parte letter Purdue had written to her addressing a possible motion to withdraw the reference to the... Continue reading
Posted Jul 1, 2021 at Credit Slips
The Supreme Court's decision in Collins v. Yellen has garnered a fair amount of attention because it resulted in a change in the leadership at the Federal Housing Finance Agency and largely dashed the hopes of Fannie and Freddie preferred... Continue reading
Posted Jun 28, 2021 at Credit Slips
I've been reading a lot of bankruptcy court transcripts this past year, and I've noticed how frequently judges issue rulings orally from the bench. Sometimes these rulings are clearly drafted out, complete with pincites, etc. Yet these decision are never... Continue reading
Posted Jun 28, 2021 at Credit Slips
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Chapter 11 venue reform is back and not a moment too soon. The perennial problem of forum shopping has devolved into naked judge picking with what appears to be competition among a handful of judges to land large chapter 11... Continue reading
Posted Jun 28, 2021 at Credit Slips
The Supreme Court ruled today in Collins v. Yellen, a case brought by Fannie Mae and Freddie Mac preferred shareholders that challenged both the constitutionality of the FHFA Director's appointment and the 2012 amendment to Treasury's stock purchase agreement with... Continue reading
Posted Jun 23, 2021 at Credit Slips
The House is schedule to take up a vote on repealing the OCC's "Fake Lender Rule," that would deem a loan to be made by a bank for usury purposes as long as the bank is a lender of record... Continue reading
Posted Jun 21, 2021 at Credit Slips
Several months ago, I did a long post about how Purdue Pharma's bankruptcy was the poster child for dysfunction in chapter 11.The gist of the argument is that the procedural checks and balances that make chapter 11 bankruptcy a fair... Continue reading
Posted May 22, 2021 at Credit Slips
The NRA's bankruptcy petition was dismissed as filed in bad faith. I'm predicting that the court's opinion will be in the next edition of every bankruptcy textbook as the case really is a textbook example of bad faith. The court... Continue reading
Posted May 11, 2021 at Credit Slips
Today Judge Dabney Friedrich (a Trump appointee) ruled that the CDC's eviction and foreclosure moratorium exceeded the agency's statutory authority. This ruling has me wroth. It exemplifies the heartless disingenuousness of that masquerades as "textualism." Judge Friedrich treats the moratorium—an... Continue reading
Posted May 5, 2021 at Credit Slips
Just when you thought you had seen everything.... Rent-to-Own Dogs! Apparently, it is illegal to do lease out a dog in Massachusetts. It does seem perfectly fine, as far as I can tell, to sell a dog on installment credit... Continue reading
Posted May 4, 2021 at Credit Slips
The United States Trustee settled with three large law firms that failed to disclose the nature of their relationship with the Sackler Family Purdue when they were engaged by Purdue in its bankruptcy. The result is that these firms will... Continue reading
Posted Apr 30, 2021 at Credit Slips
I filed an amicus brief today in support of the challenge of eight state attorneys general to the FDIC's Valid-When-Made Rule. I've blogged about the issue before (here, here, here, here, here and here). The FDIC's Valid-When-Made Rule and its... Continue reading
Posted Apr 29, 2021 at Credit Slips
I've been saying for quite a while that the OCC is a "problem agency" that is seriously in need of reform. An article in Politico today underscores the problem. The OCC—under a civil servant acting Comptroller—has begun an active lobbying... Continue reading
Posted Apr 22, 2021 at Credit Slips