United States: Insolvency/Bankruptcy

A recent decision by the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"), in the matter of In re AIO US, Inc., case no. 24-11836-CTG ("Avon"), created a split with the Fifth Circuit on the issue of whether a plan of reorganization may contain a "gatekeeping provision"

The best — and sometimes only — option for a financially troubled company to avoid a piecemeal liquidation may be to seek an acquirer for itself or its assets.

No one sets out in business to fail, but despite our best efforts, this sometimes occurs. The reasons are multiple and varied: Sometimes there is a change...