Supreme Court Case Has Bankruptcy World on Edge
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The U.S. Supreme Court will is hearing arguments in a case that could upend the common practice that ranks lenders, employees and other creditors in order of priority as they try to recover their money when a company files for bankruptcy, according to a New York Times article.
“The case has attracted wide attention from academics, workers’ groups and state tax authorities,” writes . “A decision could affect how much power bankruptcy courts have to approve settlements that do not follow the conventional order of creditor priority and potentially block some parties, in this case the company’s former employees, from any financial recovery.”
The court is hearing Czyzewski v. Jevic Holding Corporation.
