A slew of recent objections to First Brands Group's Chapter 11 plan has put fresh attention on the company's bid to pay high-ranking administrative expenses from future litigation, a structure that experts told Law360 may contravene bankruptcy rules and spook vendors in future cases.
A restaurant chain operator and a car parts maker will both go before Texas bankruptcy judges seeking confirmation of their Chapter 11 plans, and an investment platform will seek to compel its liquidation trustee to perform the role's duties.
A New York judge told two law firms to hand privilege logs to Levona Holdings in a sanctions fight, Terraform's plan administrator asked a Delaware judge to toss an adversary suit, and a company deeply intertwined with a New Jersey real estate developer's Chapter 11 argued the case should be dismissed.