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Creditor Committees of Delaware LLCs Should Take Action to Preserve Derivative Standing | Arent Fox


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Recent decisions and court commentary suggest that a creditors’ committee appointed in a Chapter 11 case should take immediate action to ensure that its rights to pursue derivative standing are preserved, particularly when the debtor is a limited liability company.
Introduction
This issue recently arose again in the Chapter 11 cases of The Collected Group, LLC and certain of its affiliates (together, Collected), filed in the United States Bankruptcy Court for the District of Delaware (the Court). During the first day hearing on Collected’s motion to approve debtor-in-possession financing, Judge Silverstein ....

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The Aftermath of a Complicated Breakup: Third Circuit Holds Stalking Horse Bidder in Terminated Transaction May Assert Potential Administrative Expense Claim Notwithstanding Disallowance of Its Termination Fee | Weil, Gotshal & Manges LLP


Executive Summary
On March 15, 2021, the Third Circuit Court of Appeals (the “
Third Circuit”) held that a stalking horse bidder may assert an administrative expense claim pursuant to section 503(b)(1)(A) of the Bankruptcy Code for costs incurred in attempting to close on an unsuccessful transaction, even when the stalking horse bidder is not entitled to a breakup or termination fee.
In
In re Energy Future Holdings Corp., 2021 U.S. App. LEXIS 7400 (3d Cir. 2021) (“
EFH II”), the debtors terminated a merger agreement with a stalking horse bidder due to the stalking horse bidder’s failure to obtain the regulatory approval necessary to consummate the contemplated merger. After the stalking horse bidder’s application for payment of a termination fee was denied by the Bankruptcy Court for the District of Delaware (the “ ....

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HighPoint Resources Commences Voluntary Chapter 11 Proceedings with Votes from More Than 99% of Voting Stakeholders to Accept the Prepackaged Plan


HighPoint Resources Commences Voluntary Chapter 11 Proceedings with Votes from More Than 99% of Voting Stakeholders to Accept the Prepackaged Plan
/EIN News/ DENVER, March 14, 2021 (GLOBE NEWSWIRE) HighPoint Resources Corporation (“HighPoint” or the “Company”) (NYSE: HPR) today announced that it has filed voluntary petitions under Chapter 11 of the Bankruptcy Code (the “Chapter 11 Cases”) in the United States Bankruptcy Court for the District of Delaware (the “Court”) to effectuate the previously announced prepackaged plan of reorganization (the “Prepackaged Plan”) and consummate the transactions pursuant to the Agreement and Plan of Merger, dated as of November 9, 2020, by and among Bonanza Creek Energy, Inc. (“Bonanza Creek”), HighPoint and Boron Merger Sub, Inc. (the “Merger Agreement”). The Prepackaged Plan implements the merger and restructuring transactions contemplated under the Merger Agreement and TSA (as defined below). ....

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