Business Restructuring Review

July/August 2006 Newsletters

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.

Insights