North America: Insolvency/Bankruptcy/Re-Structuring

Between 2023-25, venture capital funding for artificial-intelligence (AI) companies surged wellinto the billions.

In the first of its kind, a US company with no prior connection to the United Kingdom, has financially restructured via a Part 26A Companies Act (UK) Restructuring Plan (the RP), in respect of which it also achieved Chapter 15 recognition.

In this episode of Lowenstein Bankruptcy Lowdown, partners Daniel B. Besikof and Nicole Fulfree break down a recent decision from the Eastern District of Missouri in the 23andMe Chapter 11 case addressing the application of Bankruptcy Code Section 502(b)(6)'s cap on landlord rejection damages.

In 2024, in a 5-4 decision, the Supreme Court rejected the notion that bankruptcy courts may confirm a plan of reorganization that discharges claims against third parties — without the consent of affected claimants.

Friday, January 30th, a US judge dismissed a lawsuit against pharmaceutical company Johnson & Johnson (J&J), wherein plaintiffs claimed J&J relied on the "Texas Two-Step" as part of its bankruptcy plan.

Between 2023-25, venture capital funding for artificial-intelligence (AI) companies surged wellinto the billions.