We Have a Feasibility Problem

Bankruptcy Judge Denies Confirmation in Paragon Offshore

We're thankful this week for Judge Sontchi's decision last week in the Paragon Offshore bankruptcy cases. The decision was more than just a victory for the company's term loan lenders: it was a much-needed warning signal to the restructuring industry. 

First, a quick synopsis of the opinion. In short, Judge Sontchi sustained most, but not all, of the ter…