Court Approves Reader’s Digest Plan of Reorganization

The Reader’s Digest Association announced that the bankruptcy court has confirmed its plan of reorganization and expects to emerge from bankruptcy at the end of July.

Hostess Case — Bankruptcy Court Refuses to Send Cash Collateral Dispute to Arbitration

U.S. Bankruptcy Court Judge Robert Drain’s decision in the Hostess case demonstrates that even if a dispute between a debtor and a third party is arguably subject to a pre-petition arbitration clause, that dispute may not be subject to arbitration if it is considered a “substantially” core aspect of the bankruptcy process.