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June 05, 2025
Cadwalader partner Douglas S. Mintz was quoted in a recent Bloomberg Law article analyzing the U.S. Court of Appeals for the Fifth Circuit’s reversal of a bankruptcy court decision in the Sanchez Energy case—a ruling that uprooted the post-bankruptcy ownership of Mesquite Energy Inc.
Doug noted the ruling highlights a “fundamental mismatch” between the "solution-minded" approach of the Southern District of Texas bankruptcy court and the more procedural, statute-driven orientation of the Fifth Circuit.
The Southern District of Texas bankruptcy court is often perceived as prioritizing solutions to bankruptcy problems, he explained, while the Fifth Circuit has "always been among the more process-oriented when evaluating decisions that debtors have made in bankruptcy."
Doug also pointed to the broader implications of the decision, referencing the Fifth Circuit’s prior reversal in the Serta Simmons bankruptcy case, where an “uptier” debt transaction was struck down.
Read the full article here (subscription required).
