Business Restructuring Review

In this issue:

• Successful Reorganization of Kaiser Aluminum Corporation
  Kaiser Aluminum and 20 of its subsidiaries, with Jones Day as counsel, emerged from chapter 11 protection on July 6, 2006, relieved of $4 billion in debt.
• The Cautionary Tale Continues: Debt Acquired From Recipient of Voidable Transfer Subject to Disallowance Under Section 502(d)
  A New York bankruptcy court ruled that an assigned claim can be disallowed under section 502(d) of the Bankruptcy
  Code if the assignor was allegedly the recipient of a voidable transfer.
• Newsworthy
• Airline Focus: Using Section 1113 to Navigate Stormy Skies
  The bankruptcy court overseeing Delta Air Lines subsidiary Comair denied the carrier’s motion to reject a collective bargaining agreement with its flight attendants, ruling that the debtor did not negotiate in good faith and that its proposal was not fair and equitable.
• From the Top
  Brief discussion of the U.S. Supreme Court’s three bankruptcy rulings during the first six months of 2006.
• Creditor Disenfranchised After Failing to Seek Temporary Allowance of Its Claim
  The Fourth Circuit Court of Appeals held that neither the Rooker-Feldman doctrine nor local bankruptcy court rules excuse a creditor’s failure to obtain an order  temporarily allowing its claim so that it can vote on a plan.