RECENT DEVELOPMENTS IN INSOLVENCY LAW 2024

Written by Thomas R. Phinney, Paul J. Pascuzzi, and Mikayla Kutsuris^*

Welcome to the tenth annual edition of our article covering recent developments in bankruptcy law. Unless otherwise noted, all references are to the Bankruptcy Code or Federal Rules of Bankruptcy Procedure. We provide a summary of the facts, issues, and holdings from a mix of ten recent important and interesting bankruptcy decisions. Enjoy!

I. U.S. SUPREME COURT HOLDS THAT INSURER HAS STANDING AS "PARTY IN INTEREST" TO OBJECT TO CHAPTER 11 PLAN: TRUCK INSURANCE EXCHANGE V. KAISER GYPSUM CO., 602 U.S. 268, 144 S. CT. 1414 (2024).

Whether an entity is a party in interest in a Chapter 11 bankruptcy case can be important because a party in interest has certain rights in the bankruptcy proceedings. For example, Bankruptcy Code section 1109(b) allows any "party in interest" to raise and be heard on any issue in a Chapter 11 bankruptcy. Other rights accorded to a party in interest include the ability to file a Chapter 11 plan when a trustee has been appointed, to request the appointment of a trustee, to challenge the good faith of persons voting to approve a plan, and to object to confirmation of a Chapter 11 plan.