Jun
28

Bankruptcy Deals Decried by Workers Get High Court Review

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The U.S. Supreme Court is seen on June 27, 2016, in Washington.

Photographer: MANDEL NGAN/AFP/Getty Images
  • ‘Structured dismissals’ single out some creditors for recovery
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The U.S. Supreme Court will review a bankruptcy strategy that lets select creditors jump the repayment line, sometimes at the expense of parties otherwise entitled to some recovery.

The dispute taken up by the court involves “structured dismissals,” in which a company agrees to pay off one group of creditors but not others that have the same priority. The bankruptcy is then dismissed…

Bankruptcy Deals Decried by Workers Get High Court Review

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