Restructuring

Eleanor Gilbane, assisted by Jennifer Nelsen, has published an article in the American Bankruptcy Institute Journal, entitled “Can you Subcon Your Way into a Setoff?: An Analysis of Garden Ridge Corp.,” in which the author addresses the Third Circuit’s recent decision in In re Garden Ridge Corp. and the possibility that substantive consolidation of affiliated debtors’ estates in a plan could retroactively create mutual obligations for purposes of setoff. The author tracks case law on the subject and determines that the prevailing view is that substantive consolidation cannot retroactively create mutuality for purposes of setoff. Additionally, the author concludes that the Third Circuit’s decision in Garden Ridge did not alter that view.
To read the article, follow this link.
Follow this link to visit the American Bankruptcy Institute Journal’s webpage.