The Supreme Court this morning reversed the Third Circuit in Czyzewski v. Jevic Holding Corp., holding that bankruptcy courts may not circumvent the Bankruptcy Code’s creditor-payment hierarchy by means of structured dismissals. The Court’s ruling was 6 to 2, with Justices Thomas and Alito arguing in dissent that the Court should have dismissed the case instead.

The Supreme Court opinion is here, the reversed 2015 Third Circuit opinion is linked here.