Mark Felger, co-chair of Cozen O’Connor’s Bankruptcy, Insolvency & Restructuring Practice Group, and Barry Klayman, a member of the firm’s Bankruptcy, Insolvency & Restructuring Practice Group, discuss a recent bankruptcy court decision in The Delaware Business Court Insider. In In re Millennium Lab Holdings II, Bankruptcy Judge Laurie Selber Silverstein’s decision rejected the argument that the bankruptcy court had no subject matter jurisdiction to authorize the use of Rule 2004 after confirmation. According to Mark and Barry, the decision is significant because, “It outlines the basis for the bankruptcy court’s subject matter jurisdiction over a post-confirmation motion to examine third parties pursuant to Rule 2004 [and] it suggests limits on the use of Rule 2004 to take discovery post-confirmation. Finally, it addresses the question of the interplay between a broadly worded, pre-petition arbitration agreement and a Rule 2004 examination.”
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