In a March 19, 2021, decision in
., the Third Circuit joined the Second, Fifth and Seventh Circuits, prohibiting triangular setoff in a bankruptcy proceeding. A triangular setoff occurs when Party A attempts to set off a debt owed by it to Party B against a debt owed by Party B to Party C. This raises practical concerns for parties that have multiple contracts with a third party, particularly if affiliates or subsidiaries are parties to some of those contracts.
Background
In July 2016, Orexigen entered into a “Services Agreement” with McKesson Patient Relationship Solutions (MPRS), a wholly owned subsidiary of McKesson Corporation, Inc. The agreement concerned a loyalty rebate program, under which MPRS advanced funds to pharmacies to finance discounts and then billed Orexigen for reimbursement, creating an account payable by Orexigen to MPRS. Separately, Orexigen and McKesson were parties to a “Distribution Agreement,” under which, McKesson purchased drugs manufactured by
The Delaware Bankruptcy Court Appoints Newest Judge | Fox Rothschild LLP jdsupra.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from jdsupra.com Daily Mail and Mail on Sunday newspapers.
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On April 6, 2021, J. Kate Stickles was sworn in as the newest
judge of the United States Bankruptcy Court for the District of
Delaware. Judge Stickles becomes the latest judge to join the
Delaware Bankruptcy Court since Judges John T. Dorsey and Karen B.
Owens were sworn onto the bench in 2019.
Judge Stickles has thirty years of experience, previously
working for Cole Schotz P.C. and Saul Ewing LLP. According to
an Announcement issued by the Delaware
Bankruptcy Court, Judge Stickles represented debtors,
creditors, official committees, examiners, post-confirmation
DENVER Bonanza Creek Energy Inc. (NYSE: BCEI) closed its merger with HighPoint Resources Corp. this month, marking a consolidation that creates the sixth-largest producer of fossil fuel energy in Weld County.
The two Denver-based energy companies consummated their merger on April 1. In a note to investors, the new Bonanza said it intends to spend between $150 million and $170 million this year on capital expenditures, a line item usually denoting new drilling or well activity, and expects to drill between 40,000 to 44,000 barrels of oil per day through the rest of 2021.
The company solely operates in the Wattenberg Field, a subset of the Denver-Julesburg Basin that spreads across Northern Colorado and parts of Wyoming.
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The U.S. Court of Appeals for the Third Circuit recently became
the first circuit court to address the question of whether a
corporate parent can set off an obligation that it owes to a
bankrupt company against a claim owed by such company to the
parent s subsidiary. A couple of years ago, in the chapter 11
case of
Orexigen Therapeutics in the District of Delaware,
former Bankruptcy Judge Kevin Gross denied a motion to allow such a triangular setoff. Last month, the Third Circuit