Today, Energy Future Holdings Corp. (“EFH“), a Texas corporation, and several of its subsidiaries, including TXU Energy (collectively with EFH, the “Debtors“), filed for chapter 11 bankruptcy relief. The Debtors are the largest generator, distributor and certified retail provider of electricity in Texas. The Debtors disclosed approximately $42 billion in funded indebtedness and EFH disclosed total assets of […]
Read MoreOn April 3, 2014, Brookstone Holdings Corporation and its affiliates (“Brookstone” or “Company”), developers and sellers of unique and high quality household products, filed a prenegotiated chapter 11 bankruptcy in Delaware. See In re Brookstone Holdings Corporation, Case No. 14-10752 (Bankr. D. Del.). But, don’t worry. The seller of $4,000 massage chairs does not appear to be going […]
Read MoreWhile not expressly authorized by the Bankruptcy Code, it is generally well-established that a bankruptcy court, as a court of equity, is not bound by a party’s characterization of a transaction and, instead, may recharacterize the nature of the transaction, acknowledging the economic realities involved. The prime example occurs in instances where an insider purports to loan money to a […]
Read MoreIn Law v. Siegel, 571 U.S. ___ (2014) (slip opinion), the Supreme Court of the United States invalidated a bankruptcy court’s use of its inherent authority to tax (surcharge) a debtor’s exempt property with legal expenses incurred by a chapter 7 trustee during a bankruptcy case. In doing so, the Supreme Court reminded us that a […]
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