April 2016

The Bankruptcy Code lists various types of entities which are defined as a “corporation.”  These include:

• association having a power or privilege that a private corporation, but not an individual or a partnership, possesses;
• partnership association organized under a law that makes only the capital subscribed responsible for the debts of such association;
• joint-stock company;
• unincorporated company or association; or
• business trust;

but further expressly excluding a limited liability partnership.  11 U.S.C. § 101(9).

On March 8, the Bankruptcy Court for the Southern District of New York issued a bench decision in the Sabine Oil & Gas Corp. Chapter 11 case that may have a dramatic impact on the relationships between producers and midstream (pipeline transportation) companies in the troubled oil and gas sector. (In re Sabine Oil & Gas Corp., 15-11835 (Bankr. S.D.N.Y. 2016)).