FERC vs. Bankruptcy Courts—The Battle over Jurisdiction Continues

In energy industry bankruptcies, the issue of whether a U.S. bankruptcy
court has sole and exclusive jurisdiction to determine a debtor’s motion to
reject an executory contract has mostly involved a jurisdictional struggle
involving the Federal Energy Regulatory Commission. The dearth of
judicial (and legislative) guidance on this issue has led to shifting decisions
and inconsistent outcomes leaving counterparties to contracts in still
uncertain positions when a contract counterparty commences a bankruptcy
case. The authors of this article discuss the jurisdiction conundrum.

Read the full article here.