Camisha L. Simmons’s article “Are Valuation Disputes Futile?” was published in the January 2023 issue of the American Bankruptcy Institute Journal. A common dispute that arises in bankruptcy is what value to attribute to a debtor’s assets. Often the dispute is litigated. And the litigating parties introduce into evidence competing valuations. The court then usually ascribes a value to...
Continue ReadingCrude oil and natural gas prices began to decline in the third quarter of 2014. From the beginning of the third quarter of 2014 to the beginning of the third quarter 2016, the price of crude oil declined approximately 60%. Natural gas prices likewise suffered a significant decline during that time period. Consequent to the decline in commodity prices,...
Continue ReadingThe U.S. Bankruptcy Court for the District of Delaware recently issued a series of decisions in which the court dismissed preference-action complaints for insufficiency of the factual allegations contained in the complaints. These decisions represent an acknowledgment by the bankruptcy judiciary that the U.S. Supreme Court “meant what it said” in the Twombly and Iqbal cases about a heightened...
Continue ReadingDespite some recent government action, the oil-and-gas market has yet to rebound to where it was three years ago. It is not certain when the next wave of oil-and-gas bankruptcies will hit, but when it does, we might see more companies engaging in offshore exploration and production seeking bankruptcy protection. Exploration and production (E&P) companies and other parties involved...
Continue ReadingNotwithstanding the technological advances in recent years that have significantly increased oil and gas production in the U.S., there is a growing global focus on use of cleaner renewable energy sources, such as geothermal energy. In bankruptcy cases, legal issues often arise with respect to exploration and production projects, including the question of whether an oil and gas or...
Continue ReadingThe Small Business Reorganization Act of 2019 created subchapter V[1] of chapter 11 of the Bankruptcy Code which became effective on February 19, 2020. Courts and practitioners are now actively interpreting and applying the new subchapter’s provisions. One issue of application that is sure to arise during the discovery phase of litigation is whether the debtor or subchapter V...
Continue ReadingIn recent bankruptcy cases in the U.S. and Canada, debtors have sought to abandon oil and gas assets and attached plugging, abandonment and decommissioning (collectively, “decommissioning”) obligations. In those cases where abandonment is granted, state and local governments, co-lessees and predecessors-in-interest, among other parties, are often left holding the bag with respect to the substantial cost of decommissioning. This article...
Continue ReadingLiquidated damages provisions of agreements set forth in advance the amount of damages the breaching party must pay in the event of breach. These provisions are intended to avoid often costly and lengthy litigation precipitated by a contractual breach. The enforceability of these provisions, which is a question of state law, however, is frequently challenged in bankruptcy cases and...
Continue ReadingThe Bankruptcy & Restructuring Round Table features eight restructuring professionals from around the world, including Simmons Legal PLLC attorney Camisha L. Simmons, Esq. Highlighted topics include a focus on key industries facing bankruptcy & restructuring challenges such as oil and gas, the impact of ecommerce on the retail sector, and a discussion on recent case studies such as Toys R Us...
Continue ReadingThere is a global race to get first dibs on valuable metallic and nonmetallic minerals and other natural resources in outer space for consumption on Earth as well as use as materials and fuel to aid completion of exploration and colonization missions in outer space. Chances are that companies and investors racing to space to establish commercial operations, including...
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