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On June 27, 2024, the United States Supreme Court (the “Supreme Court” or “Court”) rendered a 5-4 opinion in Harrington v. Purdue Pharma, L.P. that “the [B]ankruptcy [C]ode does not authorize a release and injunction that, as part of a plan of reorganization under Chapter 11, effectively seeks to discharge claims against a nondebtor without the consent of affected claimants.”

Silicon Valley Bank (“SVB”), a key lender serving customers and borrowers primarily in the technology industry, was taken over by U.S. regulators on Friday, March 10, 2023. Included herein are considerations that may be top of mind for persons with connections to SVB.

Third-party release provisions are a common feature of almost every chapter 11 plan in large bankruptcy cases. Despite this, there has long been a split among bankruptcy courts and Circuit Courts of Appeal on the scope and permissibility of such third-party release provisions.

This case arises out of a dispute between J.C. Penney Properties, Inc., as predecessor in interest to J.C. Penney Corporation, Inc. (“JCP Properties”), and Klairmont Korners, LLC (“Klairmont”) regarding a ground lease and related sublease for commercial real estate (respectively, the “Lease” and the “Sublease”).

Debtor-in-possession financing is utilized when available and necessary in chapter 11 cases, and has come to play an integral role in the restructuring process. In this article, the authors begin by discussing DIP lenders, financing structure, and issues on exit financing.