Haynes Boone successfully defended Corelle Brands' Chapter 11 reorganization plan in a contract dispute with Guangdong Midea Consumer Electric Manufacturing Company. The U.S. District Court for the Southern District of Texas affirmed the bankruptcy court’s ruling, rejecting Midea’s appeal and upholding Corelle’s indemnity rights under Texas contract law.
Midea, a supplier to Corelle, objected to Corelle’s confirmed reorganization plan, arguing that purchase orders issued under a master supply agreement were indivisible from the agreement itself. The bankruptcy court ruled in Corelle’s favor, separating purchase orders from a master supply agreement, a critical distinction and precedent that preserves flexible restructuring options for corporations navigating financial challenges.
Haynes Boone previously represented Corelle in its successful Chapter 11 reorganization, which the U.S. Bankruptcy Court for the Southern District of Texas confirmed in February 2024.
Haynes Boone’s team included Partners Charlie Beckham, Arsalan Muhammad and Natasha Breaux along with Counsel Kourtney Lyda and Associate David Trausch.
Jones Day served as co-counsel with Haynes Boone in the appeal.
Haynes Boone’s Restructuring Practice Group handles issues in complex restructurings and Chapter 11 reorganization cases for both debtors and lenders. Clients include more than 100 Fortune 500 companies, many major foreign companies and large financial institutions.
