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Bankruptcy Update

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In the News

Lehman Brothers Announces Settlement to Resolve Massive RMBS Claims; Estimation Hearing Slated for Later This Year

For over eight years, In re Lehman Bros., No. 08-13555-scc (Bankr. S.D.N.Y.), has been one of the most active, complex bankruptcy dockets in the country.  A large portion of the remaining contested matters in that case are claims by trustees...
September 1, 2017
Case Summaries

No Easy Way Out: Legal Malpractice Defendants Desiring an Alternative Forum May Be Forced to Litigate in Bankruptcy Court until the Case is “Trial Ready”

Some legal malpractice defendants are content to litigate claims asserted by debtors in the bankruptcy court.  But many others, fearing that the debtor’s creditors may view them as a deep-pocketed resource to augment their own recoveries, would prefer to defend...
August 25, 2017
Case Summaries

First Circuit Clarifies the Scope of the Bankruptcy Court’s Jurisdiction in Civil Proceedings

Recently, in Gupta v. Quincy Medical Center, 858 F.3d 657 (1st Cir. 2017), the U.S. Court of Appeals for the First Circuit clarified the limits of the bankruptcy courts’ subject-matter jurisdiction over civil proceedings.  The decision, authored by Judge Lipez...
August 18, 2017
Industry Updates

Non-Monetary Preferences

Most everyone who has been around the business and legal worlds for even a little while is familiar with the clawback by bankruptcy trustees of money that was paid by the debtor to creditors on the eve of bankruptcy.  We...
August 11, 2017
Case Summaries

Chapter 15 Petition Granted Over Allegations of Wrongdoing

Bankruptcy Judge Mary Kay Vyskocil recently granted chapter 15 recognition to a Russian insolvency case over objections that the foreign representative had engaged in wrongdoing.  In re Poymanov, 2017 Bankr. LEXIS 2130 (S.D.N.Y. Bankr. July 31, 2017).  Judge Vyskocil held...
August 4, 2017
Case Summaries

An Inconvenient Truth: Litigants’ Access to U.S. Bankruptcy Courts is Subject to Doctrine of Forum Non Conveniens

A recent decision of the United States Bankruptcy Court for the Southern District of New York confirms that despite the increasing frequency and ease with which foreign plaintiffs and defendants can gain access to Bankruptcy Courts in the United States...
July 25, 2017
Case Summaries

Nortel Judge Upholds Indenture Trustee’s Fees

In the Nortel Networks Inc. bankruptcy cases, Judge Kevin Gross rejected a challenge by two bondholders to fees charged by an indenture trustee and its professionals.  In re Nortel Networks Inc., 2017 Bankr. LEXIS 674 (Bankr. D. Del. Mar. 8,...
July 14, 2017

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About Our Blog

Bankruptcy Update Blog provides current news and analysis of key bankruptcy cases and developments in US and cross-border matters. Patterson Belknap’s Business Reorganization and Creditors’ Rights attorneys represent creditors’ committees, trade creditors, indenture trustees, and bankruptcy trustees and examiners in US and international insolvency cases. Our team includes highly skilled and experienced attorneys who represent clients in some of the most complex cases in courts throughout the US and elsewhere.

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Blog Contributors

  • Contact Daniel A. Lowenthal.

    Daniel A. Lowenthal

    212.336.2720

    Email

  • Contact Kimberly Black.

    Kimberly Black

    212.336.2511

    Email

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Firm Highlights

Publication
Supreme Court Declines to Revisit “Undue Hardship” Standard in Religious Accommodations Cases
On October 5, 2026, the Supreme Court of the United States denied a request by a group of Washington firefighters for further clarification as to whether employers accused of illegally denying religious accommodations pursuant to Title VII of the Civil Rights Act (“Title VII”) must show that the requested workplace adjustments present an actual hardship. Petersen et al. v. Snohomish Regional Fire & Rescue et al., No. 25-1210. The Court’s denial of the petition for certiorari signals a vote of confidence from the Justices in their landmark 2023 Groff v. DeJoy decision, 600 U.S. 447 (2023), which heightened the previous “de minimis” standard for employers’ showing of undue hardship in cases of denied religious accommodations requests. Religious Accommodations and Undue...
Event
Maurene Comey to Speak on New York Criminal Bar Association Panel
On Wednesday, October 21, Partner Maurene Comey will speak on a New York Criminal Bar Association panel titled "Modern Prosecution and Defense of Sex Offenses." Ms. Comey will join Teny Geragos (Founding Partner, Agnifilo Intrater), Moira Penza (Partner, Wilkinson Stekloff), and Isabelle Kirshner (Partner, Clayman Rosenberg Kirshner & Linder LLP) to explore key strategies and considerations for prosecuting and defending modern sex-offense cases. To learn more, please click here.
Firm News
Barbara Mullin Named Among Benchmark Litigation’s 2026 Top 250 Women in Litigation
Partner Barbara Mullin has been named one of Benchmark Litigation’s 2026 Top 250 Women in Litigation. The ranking uses an extensive research process, including “months of investigation into individual litigators’ professional activities as well as client feedback surveys and one-on-one interviews” to identify women who are “top players” in their field. To learn more, please click here.
Firm News
Firm Attorneys Honored by The Legal Aid Society at 2026 Pro Publico Awards
On October 7, 2026, The Legal Aid Society honored Of Counsel David Dykhouse and Associates Kimberly Black and Jillian Horowitz at its annual Pro Bono Publico Awards Ceremony. The Pro Bono Publico Award recognizes pro bono partners for their outstanding contributions to advancing equal justice for New Yorkers. Mr. Dykhouse, Ms. Black, and Ms. Horowitz were honored for their work representing a group of tenants in connection with a real estate group’s bankruptcy filing. Prior to its bankruptcy, the group owned 93 different properties with over 5,000 residential units. The tenants lived in unsafe and unsanitary conditions due to real estate group’s years of neglect. Patterson Belknap filed an objection to the group’s proposed sale of its real estate portfolio, asserting that the...
Publication
Data Sale In Spirit Bankruptcy Raises Novel Privacy Risks
In August 2025, Spirit Airlines filed its second bankruptcy less than a year after its first. Although the company tried to find a way to keep the lights on, in May 2026, Spirit Airlines pivoted toward liquidation in the U.S. Bankruptcy Court for the Southern District of New York. Though asset sales are routine practice in large Chapter 11 cases like Spirit Airlines, in this case, the debtors' proposed sale of assets has raised novel data privacy questions that the law may not be ready to answer. To continue reading Daniel A. Lowenthal and Kimberly Black's article on this topic, please click here.
Publication
U.S. Department of Education Formally Reverts to Title IX Rules from 2020
On September 29, 2026, the U.S. Department of Education (the “ED”) published a Final Rule, “Recodification of Title IX Rules,” formally removing the 2024 Title IX Rule from the Code of Federal Regulations (“CFR”) and restoring the provisions of the 2020 Title IX Rule, with a few exceptions.[1] The 2026 Title IX Rule took effect upon publication. For most schools, colleges, and other recipients of federal education funding, the 2026 Rule does not change day-to-day obligations, because the 2020 framework has governed since early 2025. It does, however, close a chapter of litigation and set the stage for further regulatory action. As we reported in our February 6, 2025 Alert, a federal district court vacated the entirety of the 2024...
Blog Post
AI Companies Find Value in Bankrupt Companies
Spirit Airlines filed for bankruptcy in November 2024 and, after emerging from bankruptcy, filed again in August 2025. During the second case, the company tried to find a way to keep the airline in business but to no avail. In May 2026, Spirit Airlines pivoted towards a wind-down and ceased operations. This summer, as a part of its wind-down, Spirit Airlines began marketing its remaining assets. It had plenty of traditional assets to sell. For example, the debtors’ bid procedures motion filed in May 2026 listed the following assets: takeoff and landing slots at LaGuardia Airport; aircraft hangar(s); corporate headquarters; training center; multi-family residential buildings; ground service equipment; spare engines; flight simulators; aircraft maintenance equipment; and assets related to the...
Blog Post
You Win Some and Lose Some: Judge Liman Decides Competing Motions to Compel
On September 4, 2026, District Judge Lewis J. Liman (S.D.N.Y.) granted in part and denied in part Plaintiff Lashify, Inc.’s (“Lashify”) motion to compel discovery and denied Defendants Qingdao Network Technology Co., Ltd., d/b/a UCoolMe and Vivicute Limited’s (“UCoolMe”) motion to compel. Lashify, Inc. v. Qingdao Network Tech. Co., Ltd., No. 25-cv-4183 (S.D.N.Y. Sep. 4, 2026). Lashify’s Motion to Compel Lashify moved to compel UCoolMe to provide responses to discovery requests relating to: (i) product samples and raw materials; (ii) manufacturing; (iii) employees and supply chain; (iv) marketing; and (v) finances. Id. at *2. The Court found that each of those topics were relevant under Fed. R. Civ. P. 26(a) and that UCoolMe did not sufficiently respond to discovery requests related to...
Blog Post
Delaware Bankruptcy Court Crafts Test Concerning Post-Confirmation “Related-To” Jurisdiction
The filing of a bankruptcy case creates an estate consisting of the debtor’s legal and equitable property. The estate will continue until the debtor’s confirmed plan of reorganization or liquidation goes effective. It will then terminate, and the property will either revest in the reorganized debtor or be transferred to another entity such as a post-confirmation liquidation trust. Now and then, bankruptcy judges face this issue: after plan confirmation, when can a liquidation trustee assert state law claims in a lawsuit filed in the bankruptcy court? In terms of a bankruptcy court’s subject matter jurisdiction, the question can be articulated this way: when can a bankruptcy court have post-confirmation related-to jurisdiction over such claims under 28 U.S.C. section 1334?[i] A bankruptcy judge...
Firm News
Firm Secures Complete Patent Litigation Victory on Behalf of J&J
On August 31, 2026, Patterson Belknap secured a victory on behalf of Janssen Pharmaceuticals, Inc. (a subsidiary of Johnson & Johnson) in a Hatch-Waxman patent infringement litigation relating to Spravato®, its blockbuster esketamine nasal spray approved for the treatment of treatment-resistant depression and major depressive disorder with suicidal ideation. This litigation was initiated after an ANDA filing by Sandoz, Inc. (“Sandoz”) in 2023, seeking FDA approval for its generic version of Spravato. Janssen asserted that Sandoz’s proposed generic product would infringe certain claims of U.S. Patent Nos. 11,446,260, 10,869,844; 11,173,134; and 11,311,500.  Sandoz counterclaimed for declaratory judgment that each of the asserted patent claims was invalid under 35 U.S.C. §103 and/or § 112.  On August 31, 2026, the U.S. District...
Publication
Supreme Court Declines to Revisit “Undue Hardship” Standard in Religious Accommodations Cases
On October 5, 2026, the Supreme Court of the United States denied a request by a group of Washington firefighters for further clarification as to whether employers accused of illegally denying religious accommodations pursuant to Title VII of the Civil Rights Act (“Title VII”) must show that the requested workplace adjustments present an actual hardship. Petersen et al. v. Snohomish Regional Fire & Rescue et al., No. 25-1210. The Court’s denial of the petition for certiorari signals a vote of confidence from the Justices in their landmark 2023 Groff v. DeJoy decision, 600 U.S. 447 (2023), which heightened the previous “de minimis” standard for employers’ showing of undue hardship in cases of denied religious accommodations requests. Religious Accommodations and Undue...
Event
Maurene Comey to Speak on New York Criminal Bar Association Panel
On Wednesday, October 21, Partner Maurene Comey will speak on a New York Criminal Bar Association panel titled "Modern Prosecution and Defense of Sex Offenses." Ms. Comey will join Teny Geragos (Founding Partner, Agnifilo Intrater), Moira Penza (Partner, Wilkinson Stekloff), and Isabelle Kirshner (Partner, Clayman Rosenberg Kirshner & Linder LLP) to explore key strategies and considerations for prosecuting and defending modern sex-offense cases. To learn more, please click here.
Firm News
Barbara Mullin Named Among Benchmark Litigation’s 2026 Top 250 Women in Litigation
Partner Barbara Mullin has been named one of Benchmark Litigation’s 2026 Top 250 Women in Litigation. The ranking uses an extensive research process, including “months of investigation into individual litigators’ professional activities as well as client feedback surveys and one-on-one interviews” to identify women who are “top players” in their field. To learn more, please click here.
Firm News
Firm Attorneys Honored by The Legal Aid Society at 2026 Pro Publico Awards
On October 7, 2026, The Legal Aid Society honored Of Counsel David Dykhouse and Associates Kimberly Black and Jillian Horowitz at its annual Pro Bono Publico Awards Ceremony. The Pro Bono Publico Award recognizes pro bono partners for their outstanding contributions to advancing equal justice for New Yorkers. Mr. Dykhouse, Ms. Black, and Ms. Horowitz were honored for their work representing a group of tenants in connection with a real estate group’s bankruptcy filing. Prior to its bankruptcy, the group owned 93 different properties with over 5,000 residential units. The tenants lived in unsafe and unsanitary conditions due to real estate group’s years of neglect. Patterson Belknap filed an objection to the group’s proposed sale of its real estate portfolio, asserting that the...
Publication
Data Sale In Spirit Bankruptcy Raises Novel Privacy Risks
In August 2025, Spirit Airlines filed its second bankruptcy less than a year after its first. Although the company tried to find a way to keep the lights on, in May 2026, Spirit Airlines pivoted toward liquidation in the U.S. Bankruptcy Court for the Southern District of New York. Though asset sales are routine practice in large Chapter 11 cases like Spirit Airlines, in this case, the debtors' proposed sale of assets has raised novel data privacy questions that the law may not be ready to answer. To continue reading Daniel A. Lowenthal and Kimberly Black's article on this topic, please click here.
Publication
U.S. Department of Education Formally Reverts to Title IX Rules from 2020
On September 29, 2026, the U.S. Department of Education (the “ED”) published a Final Rule, “Recodification of Title IX Rules,” formally removing the 2024 Title IX Rule from the Code of Federal Regulations (“CFR”) and restoring the provisions of the 2020 Title IX Rule, with a few exceptions.[1] The 2026 Title IX Rule took effect upon publication. For most schools, colleges, and other recipients of federal education funding, the 2026 Rule does not change day-to-day obligations, because the 2020 framework has governed since early 2025. It does, however, close a chapter of litigation and set the stage for further regulatory action. As we reported in our February 6, 2025 Alert, a federal district court vacated the entirety of the 2024...
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