New opinion — bankruptcy structured dismissals approved by divided panel

In re: Jevic Holding Corp. — bankruptcy — affirmance — Hardiman

The holding of today’s lone case is crisply summarized in the introduction:

This appeal raises a novel question of bankruptcy law: may a case arising under Chapter 11 ever be resolved in a “structured dismissal” that deviates from the Bankruptcy Code’s priority system? We that, in a rare case, it may.

Hardiman was joined by Barry and by Scirica in part. Scirica dissented in part: he would have rejected the structured dismissal here and reversed. Arguing counsel were Jack Raisner for the appellants, Christopher Landau of Kirkland (a Scalia and double-Thomas clerk) for appellees, and Wendy Cox of the DOJ for the US as amicus.