In Defense Of Expedited Bankruptcies

Law360 (June 30, 2021, 4:51 PM EDT) -- Expedited Chapter 11 bankruptcies are on the rise because they save money and because key constituents such as bank lenders and bondholders recognize that the more time that a debtor spends in Chapter 11, the more likely the case is to fail.

Increasingly, debtors file Bankruptcy Code Section 363 motions to sell assets in bulk on the petition date. Furthermore, it has become common to seek confirmation of a plan of reorganization within a few weeks, if not days, of the petition date. Recently, the U.S. Bankruptcy Court for the Southern District of Texas confirmed the plan in the Belk Inc....

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