Chapter 11: Limiting Debtor's Business Judgment Under 363 and for Transactions Outside the Ordinary Course
Articulated Business Justification; Totality of the Circumstances; Conflicts With Section 503
Recording of a 90-minute CLE video webinar with Q&A
This CLE webinar will discuss the standard for approval of transactions outside the ordinary course of business of the Chapter 11 debtor, often under 11 USC 362 and 365, and how and why the debtor's "business judgment" is often more limited than might seem. The panel will review how courts have articulated the "business judgment rule" in bankruptcy, whose business judgment counts, the totality of the circumstances approach, and differences between the rules as stated and as actually applied in practice.
- History of the business judgment rule under Sections 363 and 365
- Exceptions to business judgment rule of decision
- How the inclusion of Section 503 fees in orders or agreements affects analysis
- Strategies for leveraging ambiguities in the standard
- Additional issues considered when transactions involve insiders and affiliates
The panel will review these and other key issues:
- What exactly is the business judgment rule in bankruptcy?
- Do courts apply state law business judgment tests?
- Does ambiguity in the standards offer leverage points to stakeholders?
Mr. Leggett practices in the areas of bankruptcy and complex commercial litigation. His experience includes... | Read More
Mr. Leggett practices in the areas of bankruptcy and complex commercial litigation. His experience includes investigating and prosecuting director and officer liability claims; representing trustees, creditors, equity holders, and debtors in bankruptcy proceedings; federal and state court commercial litigation; and trials in federal, bankruptcy, and state courts nationwide.Close
Frank A. Oswald
Togut Segal & Segal
For more than 30 years, Mr. Oswald has focused his practice exclusively on bankruptcy, out-of-court restructurings and... | Read More
For more than 30 years, Mr. Oswald has focused his practice exclusively on bankruptcy, out-of-court restructurings and creditors' rights matters. He has represented clients in all facets of bankruptcy cases as well as insolvency issues in business transactions.Close
Dana R. Quick
Ms. Quick practices in the area of insolvency and commercial litigation. Her experience includes prosecuting director... | Read More
Ms. Quick practices in the area of insolvency and commercial litigation. Her experience includes prosecuting director and officer liability claims; representing trustees, creditors, creditor committees, and debtors in bankruptcy proceedings; state court insolvency litigation; and prosecuting and defending preference actions. Additionally, Ms. Quick has significant experience representing and counseling companies of all sizes on employment issues, including ADA, FMLA, and Title VII matters.Close