Robinson+Cole Lawyers Recognized During Global M&A Network's 2023 Turnaround Atlas Awards

Members of Robinson+Cole’s Bankruptcy + Reorganizations Group were recognized for their work on the Mallinckrodt plc restructuring during Global M&A Network's 15th Annual Turnaround Atlas Awards hosted in New York City on July 19, 2023 as part of the organization’s Restructuring & Distressed Investing Forum. The annual event honors the achievements of legendary leaders, outstanding firms and best-value creating transactions from the restructuring, distressed investing and insolvency industry. Robinson+Cole won the Chapter 11 Restructuring of the Year in the “mega” category (value: above $5 billion).

Robinson+Cole serves as co-counsel to the Official Committee of Unsecured Creditors (UCC) in the Mallinckrodt plc, et al. chapter 11 cases. Mallinckrodt is a global enterprise that operates two separate businesses – a Specialty Brands business and a Specialty Generics business. The Specialty Brands business manufactures INOmax and Acthar Gel, while the Specialty Generics business is the only U.S. producer of acetaminophen and various opioids. Litigation against the company on multiple fronts, including opioid-related litigation, left the company to seek to restructure its businesses, which led to the chapter 11 filing on October 12, 2020. Through the bankruptcy, the Debtors were able to de-lever their capital structure by more than $1 billion. A disclosure statement for the plan of reorganization was approved by the Bankruptcy Court for solicitation on June 17, 2021, with the hearing on confirmation of the Debtors’ plan held on September 21, 2021. On February 3, 2022 the Bankruptcy Court issued a written ruling confirming the Chapter 11 plan and on March 2, 2022 the Bankruptcy Court entered a Confirmation Order confirming the Fourth Amended Joint Plan of Reorganization. Further, on April 27, 2022 the Irish High Court made an Order pursuant to Section 541(3) of the Companies Act of Ireland confirming the Scheme of Arrangement proposed by the Examiner between Mallinckrodt plc, its creditors and members, which is based on and consistent in all respects with the Fourth Amended Plan.

The Team advising the UCC includes Natalie Ramsey, Jamie Edmonson, Patrick Birney, Michael Enright, Rachel Jaffe Mauceri, Laurie Krepto, Ryan Messina, Annecca Smith, along with Business Litigation Group Members John Cordani and Curtis Crowther. Learn more about the Turnaround Atlas Awards.

In addition to the award, Jamie was among the panelists that presented the "Distressed M&A: Deals and Steals" as part Restructuring & Distressed Investing 15th Annual Forum, which discussed acquiring assets under Chapter 11 bankruptcy proceedings – from valuations, challenge of due diligence, and financing.

Bankruptcy + Reorganizations Group Lawyers Author Articles Included in "Best of ABI 2022 "

Two pieces by Bankruptcy + Reorganizations Group attorneys have been selected by the American Bankruptcy Institute (ABI) for inclusion in its “Best of” series for 2022. The article "SC SJ: One Take on Harmonizing the Bankruptcy Code and FAA," authored by Rachel Jaffe Mauceri and Katherine S. Dute, has been included in the “Best of ABI 2022: The Year in Business Bankruptcy,” and the article “Is the ACA Penalty Entitled to Priority Treatment as a Tax Under the Bankruptcy Code?," authored by Andrew A. DePeau and Ryan M. Messina, has been included in the “Best of ABI 2022: The Year in Consumer Bankruptcy.” Both publications are annual compendiums of the best ABI Journal and conference seminar articles.

Rachel and Kate’s article, featured in the May 2022 issue of the Journal, examines the U.S. Bankruptcy Court for the District of Delaware’s approach, in a recent hotel bankruptcy, to addressing the longstanding tension between the Federal Arbitration Act (FAA) and the Bankruptcy Code. Read the article.

Published in the October 2022 issue of the ABI Journal, Andrew and Ryan’s article addresses the Patient Protection and Affordable Care Act (ACA) signed into law on March 23, 2010. The ACA requires certain individuals to maintain a “minimal essen­tial [health insurance] coverage” throughout the year, known as the “individual mandate.” A person sub­ject to the mandate who fails to main­tain the required insurance for one month or more is assessed a “shared responsibility payment.” The article focuses on several federal court decisions, including from the U.S. Supreme Court as well as contradictory rulings from the Third and Fifth Circuit Courts, that ana­lyzed whether the shared-responsibility payment is a tax under the Bankruptcy Code and, if so, whether such payments qualify for priority treatment. Read the article.

Andrew DePeau and Ryan Messina Author ABI Journal Article on ACA “Penalty” and the Bankruptcy Code

Bankruptcy + Reorganizations Group members, Andrew DePeau and Ryan Messina, authored the article “Is the ACA Penalty Entitled to Priority Treatment as a Tax Under the Bankruptcy Code?,” published as a Consumer Corner piece in the October 2022 issue of the ABI Journal. The article addresses the Patient Protection and Affordable Care Act (ACA) signed into law on March 23, 2010. The ACA requires certain individuals to maintain a “minimal essen­tial [health insurance] coverage” throughout the year, known as the “individual mandate.” A person sub­ject to the mandate who fails to main­tain the required insurance for one month or more is assessed a “shared responsibility payment.” Andrew and Ryan write that “although described by the statute as a ‘penalty,’ the payment is collected by the Internal Revenue Service (IRS) along with one’s federal income tax return and shares many other features of a ‘tax.’ Whether the payment is a penalty or a tax remains a hotly contested issue, and the answer dif­fers depending on the type of analysis.” The article focuses on several federal court decisions, including from the U.S. Supreme Court as well as contradictory rulings from the Third and Fifth Circuit Courts, that ana­lyzed whether the shared-responsibility payment is a tax under the Bankruptcy Code and, if so, whether such payments qualify for priority treatment. The authors conclude that “(w)hile the ACA no longer imposes a shared-respon­sibility payment, practitioners would be well-served to main­tain an awareness of the various factors that courts consider in determining the priority treatment of government claims.” Read the article here.

Katherine Fix and Ryan Messina Author Article on Business Trusts’ Eligibility for Chapter 11 Published in ABI Journal

Bankruptcy + Reorganizations Group lawyers Katherine M. Fix and Ryan M. Messina authored the article “Does Federal Common Law Define a Business Trust’s Eligibility for Chapter 11?” published in the October 2021 issue of the ABI Journal, the member publication of the American Bankruptcy Institute. Featured in the Journal’s “On the Edge” column, the article focuses on how courts have struggled to determine whether an entity is a “business trust” that is eligible to be a “debtor” under the Bankruptcy Code-the crux of which arises from the Code’s failure to define what a business trust is within the context of bankruptcy. Katherine and Ryan provide a history of business trusts in the bankruptcy code; examine the split of authority that exists as to which law governs: the law of the jurisdiction in which the trust resides, or federal common law; and offer insights into how a recent Delaware Bankruptcy Court decision regarding an offshore real estate investment trust may become the new standard. Read the full article.

Robinson+Cole Welcomes Fall Class

Robinson+Cole welcomes back the following members from our summer class and internship programs: Christopher Y. Eddy (University of North Carolina School of Law), Michael G. Lisitano (Quinnipiac University School of Law), Ryan M. Messina (Widener University School of Law), Samuel C. Maduabueke (University of Connecticut School of Law), Annecca H. Smith (Washington University in St. Louis School of Law), and Kayla N. West (Wake Forest University School of Law), and congratulates them on their recent graduation.