U.S. Supreme Court
Mar. 29, 2017
Ruling weighs distributions in violation of absolute priority rule
A recent Supreme Court ruling has closed the door to distribution of entire estates in violation of the absolute priority rule.
Evan M. Jones
Partner
O'Melveny & Myers LLP
restructuring
400 S Hope St
Los Angeles , CA 90071-2899
Phone: (213) 430-6236
Fax: (213) 430-6407
Email: ejones@omm.com
UC Berkeley Boalt Hall
Evan Jones is a restructuring partner at O'Melveny & Myers LLP and has broad experience in all facets of reorganization — both in and out of court — having represented bank groups, secured creditors, debtors, unsecured creditor committees, acquirers of distressed assets, and other constituents
Daniel S. Shamah
Counsel
O'Melveny & Myers LLP
bankruptcy
Daniel Shamah is counsel at O'Melveny in New York. He advises financial institutions, hedge funds and public and private companies in a wide array of restructuring, bankruptcy, and insolvency cases.
In a widely anticipated ruling, the U.S. Supreme Court in Czyzewski v. Jevic Holding Corp., 2017 DJDAR 2805 (March 22, 2017), ruled that bankruptcy courts "may not approve structured dismissals that provide for distributions that do not follow ordinary priority rules without the consent of affected creditors." In doing so, the court rejected the 3rd U.S. Circuit Court of Appeals' ruling that the circumstances were an unusual "rare case," justifying deviation from the ordinary prio...
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