Bankruptcy Remote Entities, Substantive Consolidation, and the Future after Transwest
Author: M. Douglas Flahaut.
Source: Volume 35, Number 07, July 2019 , pp.91-96(6)
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Abstract:
In this article the author discusses recent ways courts have dealt with lender requirements designed to prohibit or otherwise impose limits on a borrower’s ability to seek bankruptcy court protection. It begins by surveying recent cases holding golden shares and blocking provisions unenforceable as a matter of public policy, and discussing the various standards for substantive consolidation in bankruptcy court. Then it examines in some depth the recent Ninth Circuit Transwest decision and its impact on the substantive consolidation risks in bankruptcy proceedings.Keywords: In re Intervention Energy Holdings, LLC; Substantive Consolidation; In re Transwest Resort Properties
Affiliations:
1: Arent Fox LLP.