A bankrupt Georgia-Pacific LLC unit defeated junior creditors’ efforts to throw out its Chapter 11, with a ruling Friday from the Fourth Circuit that will allow the eight-year bankruptcy to continue.
The US Court of Appeals for the Fourth Circuit said federal courts have subject-matter jurisdiction over a bankruptcy case filed by a solvent debtor.
“Challenges about a debtor’s eligibility for bankruptcy protection are not jurisdictional, even when those challenges are constitutional,” Judge A. Marvin Quattlebaum Jr. said for the majority.
The Friday decision comes after a majority of a three-judge panel expressed concern during arguments in May that ruling ...