SCOTUS ALERT: Supreme Court Holds That Bankruptcy Courts Lack Power to Utilize Structured Dismissals in Violation of Priority Rules

SCOTUS ALERT: Supreme Court Holds That Bankruptcy Courts Lack Power to Utilize Structured Dismissals in Violation of Priority Rules | Michael L. Moskowitz

By Michael L. Moskowitz and Melissa A. Guseynov

On March 22, 2017, the United States Supreme Court held that bankruptcy courts lack the power to dismiss chapter 11 cases by structured dismissal if they provide for distributions that do not adhere to the Bankruptcy Code’s priority rules without the consent of the affected creditors. Czyzewski et al. v. Jevic Holding Corp. et al. (Case No. 15-649) (Sup. Ct.).

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