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Using Substantive Consolidation and Similar Remedies to Consolidate the Bankruptcy Estate

Recording of a 90-minute CLE webinar with Q&A

This program is included with the Strafford CLE Pass. Click for more information.
This program is included with the Strafford All-Access Pass. Click for more information.

Conducted on Wednesday, June 3, 2020

Recorded event now available

or call 1-800-926-7926

This CLE course will address substantive consolidation which allows the bankruptcy court to treat two or more debtors as one entity, pool the assets and claims of all entities, and eliminate inter-company claims for purposes of administration and distribution of assets.


What creditor would not feel abused if the debtor's non-bankruptcy affiliate has substantial assets but will not join the case? Often the creditor may have dealt with the debtor and the non-debtor as a single enterprise, or the debtor may have even indicated that assets of the non-debtor were available to satisfy claims. Can the asset-rich non-debtor be pulled into bankruptcy against its will?

Substantive consolidation allows the bankruptcy court to disregard the separateness of the debtor and one or more entities--often subsidiaries or sister companies--pool the assets and claims of all entities, and eliminate inter-company obligations for purposes of voting and distribution. Consensual substantive consolidation is a reasonably common feature of corporate Ch. 11 cases.

Listen as our authoritative panel of attorneys discusses how trustees and creditors can reach beyond the debtor's estate to assets of related entities and insiders with substantive consolidation, piercing the veil, and alter ego liability. The panel will also discuss best practices for opposing these equitable remedies.



  1. Substantive consolidation
  2. Alter ego
  3. Piercing the veil
  4. Best practices for creditors
  5. Best practices for debtors


The panel will review these and other key issues:

  • In which jurisdictions is non-consensual substantive consolidation still viable?
  • How does substantive consolidation in bankruptcy court differ from theories of alter ego and piercing the corporate veil?
  • Does the bankruptcy trustee have exclusive standing to pursue alter ego claims, or is this remedy available to creditors as well?
  • What factors do courts consider in granting these remedies?
  • What are best practices for debtors to reduce the risk that their business and financial affairs are not closely intertwined with affiliated non-debtor entities?


Fender, Steven
Steven Fender

Managing Partner
Steven Fender

Mr. Fender focuses his practice on bankruptcy and commercial litigation matters, in both state and federal courts....  |  Read More

Aurzada, Keith
Keith M. Aurzada

Reed Smith

Mr. Aurzada works with his clients to solve complex business problems. He regularly assists clients on matters...  |  Read More

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