U.S. Appeals Court to Review Legality of “Texas Two-Step” Bankruptcy Maneuver


The U.S. Court of Appeals for the Fourth Circuit has agreed to take up a bankruptcy involving the controversial “Texas two-step,” a unique merger tactic often utilized to manage liabilities in Chapter 11 cases. This review could be pivotal in determining the future viability of the maneuver, which has been utilized by several major corporations. The opening brief for this case is due on July 10.