Michael Friedman Discusses “Gifting” Among Creditors in New Debtwire PodcastPrint Page
Michael Friedman, Co-Practice Group Leader of Chapman's Bankruptcy and Restructuring Group, recently joined DebtWire’s Richard Goldman for a podcast interview. Michael discussed “gifting,” which is a plan confirmation strategy whereby a senior group of creditors bypasses an intermediate tranche of creditors and “gifts” a portion of its recovery to a junior class of creditors in exchange for that class’s plan support. While New York federal courts have held that “gifting” violates the Bankruptcy Code’s absolute priority rule (Dish Network v. DBSD), a recent Delaware district court decision (Nuverra Environmental) held otherwise.
For more information, download Michael's Law360 article on the Nuverra Environmental case: “In Delaware, the Gift Plan Is Not Dead Yet.”
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