United States Supreme Court Narrows Use of Structured Dismissal in Chapter 11 Cases
In a 6-2 decision written by Justice Stephen Breyer, the U.S. Supreme Court ruled Wednesday, in Czyzewski et al v. Jevic Holding Corp. et al, that the use of so-called structured dismissals to end Chapter 11 cases must be narrowed, holding that a settlement that effectively wiped out employee claims against a trucking company but paid more junior creditors impermissibly sidestepped the U.S. Bankruptcy Code's creditor priority scheme. The Supreme Court’s decision reversed a Th