March 23, 2017
Special counsel Benjamin D. Feder
was quoted in the Global Restructuring Review
article “Lawyers welcome US Supreme Court’s Jevic decision.” The article discusses the U.S. Supreme Court’s decision in the Jevic Transportation case that states that bankruptcy courts cannot ignore priority rules for the distribution of assets when they order the structured dismissal of a case. Ben mentioned to Global Restructuring Review
that the majority “crafted a narrow ruling” – something he expected following the oral arguments.
“There were concerns by many in the bankruptcy bar when the court accepted the case, of a seminal ruling similar in magnitude to the Stern decision, but those worries had pretty much been allayed,” said Ben. “While [Jevic] will likely diminish somewhat the parameters within which practitioners can seek to craft ‘creative’ solutions to resolve Chapter 11 cases, such as so-called ‘gift’ plans, the impact of this case overall will be relatively minor.”