Bill on Bankruptcy: Kodak Plan Bumps the Debt, Craters Stock
May 2 (Bloomberg Law) — Eastman Kodak Co. filed a Chapter 11 plan that cratered the stock and bumped up the unsecured notes, although the plan may be revised to pay off second-lien debt fully in cash, as Bloomberg Law’s Lee Pacchia and Bloomberg News bankruptcy columnist Bill Rochelle discuss on their video. Next, Rochelle and Pacchia address a decision by a Delaware bankruptcy judge in the reorganization of School Specialty Inc. apparently holding that no make-whole premium will ever be too large for approval. The third item concerns a doctrine known as equitable estoppel, often used to stymie appeals from bankruptcy court approvals of reorganization plans. Whether it’s a valid theory remains undecided, now the U.S. Supreme Court declined to review a decision dismissing an appeal from a confirmation order approving the Charter Communications Inc. Chapter 11 plan. The final item is an opinion telling lawyers for consumer bankrupts how they can violate ethical rules when signing clients to flat-fee arrangements.