Restructuring & Insolvency Litigation Update

Delaware Bankruptcy Judge Reminds Plaintiffs Seeking Prejudgment Injunctive Relief to Keep Grupo Mexicano and Granfinanciera in Mind

In April, Delaware Bankruptcy Judge John Dorsey issued a Memorandum Opinion in BYJU's Alpha, Inc. v. Camshaft Capital Fund, LP (In re BYJU's Alpha, Inc.), 661 B.R. 109 (Bankr. D. Del. 2024), considering whether the Bankruptcy Court had the authority to grant the Debtor's request for prejudgment attachment of missing assets where the Debtor had asserted fraudulent transfer claims seeking monetary relief. In other words, could the Bankruptcy Court grant prejudgment injunctive relief where the plaintiff asserted a claim sounding in law?

The court began with a brief discussion of the U.S. Supreme Court's rulings in Grupo Mexicano de Desarrollo S.A. v. Alliance Bond Fund, Inc., 527 U.S. 308 (1999) and Granfinanciera, S.A. v. Nordberg, 492 U.S. 33 (1989). In Grupo Mexicano, the U.S. Supreme Court considered whether a district court had