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 case from the Delaware Bankruptcy Court in The Delaware Business Court Insider. Casino Caribbean v. Money Centers of America (In re Money Centers of America) deals with the issue of tribal sovereign immunity of casinos in preference actions. The court held that the casinos shared sovereign immunity with the Indian tribes that owned and operated them and that the Bankruptcy Code did not abrogate the immunity for preference actions by a bankruptcy trustee. Mark and Barry explain that “because of the unique status of Indian tributes, the court’s treatment of tribal sovereign immunity is not necessarily generalizable to the treatment to be accorded the sovereign immunity of other ‘governmental units’ under the Bankruptcy Code.”
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