Bankruptcy Supreme Court Case: Czyzewski v. Jevic Holding Corporation

Wednesday December 7th, 2016 the U.S. Supreme Court heard arguments in the case Czyzewski v. Jevic Holding Corporation (a Delanco, NJ based company). http://www.nytimes.com /2016/12/06/ business/dealbook/ supreme-court-case- has-bankruptcy- world-on-edge.html?_r=0  This case questions the need for 'absolute priority rules' in Chapter 11 bankruptcy cases, which protect intermediate creditors from losing claims on assets to senior and junior creditors.  Intermediate creditors include Jevic Holding Corporation's 1,785 workers (drivers) and the $8MM in pay owed to these workers.  Nineteen law professors signed a 'friend-of-the-court brief' urging the Supreme Court to side with Jevic's workers and maintain 'absolute priority rules'.  Opponents of 'absolute priority rules' argue paying small creditors fractions of their claims could be in the best interests of a majority of the company's creditors.  This argument persuaded a bankruptcy judge and a divided panel of the U.S. Court of Appeals for the Third Circuit.

(Libby Lewis)  http://www.nytimes.com/2016/12/06/business/dealbook/supreme-court-case-has-bankruptcy-world-on-edge.html?_r=0

No Comments

Leave a comment
Comment Information
EMAIL US FOR A RESPONSE

Get Our Help Today

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Office Locations

Cherry Hill Office
1060 North Kings Highway,Suite 333
Cherry Hill, NJ 08034

Toll Free: 800-759-0767
Phone: 856-254-2196
Fax: 856-414-1230
Map & Directions

Philadelphia Office
Suite 1505
1515 Market Street
Philadelphia, PA 19102

Toll Free: 800-759-0767
Phone: 215-928-9199
Map & Directions

Mount Holly Office
1848 Burlington-Mount Holly Rd
Mount Holly, NJ 08060

Toll Free: 800-759-0767
Phone: 856-254-2196
Map & Directions

Philadelphia Office
7909 Bustleton Avenue
Philadelphia, PA 19152

Toll Free: 800-759-0767
Phone: 215-928-9199
Map & Directions