Page 9 - Delaware Lawyer - Winter 2022

known as the “Bankruptcy Code”), bankruptcies were governed by the Bankruptcy Act of 1898. Under the Act, saving a distressed business was a more difficult endeavor. Bankruptcy referees, instead of judges, oversaw the liquidations and, in rare cases, reorganizations of debtor companies. Delaware had one bankruptcy referee and, during most of the 1970s, the position was filled by future Bank- ruptcy Judge Helen S. Balick. Judge Balick also served at that time as a magistrate judge for the U.S. District Court for the District of Delaware.
The Bankruptcy Code established a new framework for reorganizing and assisting distressed businesses, to be overseen by bankruptcy judges with broad powers. After the Bank-
ruptcy Code became effective, Judge Balick took on the role of Delaware’s sole bankruptcy judge, while also continuing to serve as a part-time magistrate judge until 1980, when she became a full-time bankruptcy judge. At that time, Delaware’s bank- ruptcy docket was small and manage- able.
Over the following decade, Judge Balick’s judicial reputation in ef- ficiently and effectively overseeing bankruptcy cases (including, for ex- ample, the Phoenix Steel Corp. case [Case No. 87-147]) grew, and by the early 1990s, Delaware joined New York as one of the nation’s most popular bankruptcy venues. Among other measures (discussed further be- low), Judge Balick established proce-
The Delaware Bankruptcy Court system has developed and maintained a longstanding national reputation for being
an effective, efficient, experienced and consistent court system.
dures to efficiently monitor and ad- minister large Chapter 11 cases that were later adopted by bankruptcy courts throughout the country.
In December 1990, Continental Airlines filed for bankruptcy protec- tion in Delaware (Case No. 90-932). At the time, it was the largest bank- ruptcy ever filed in Delaware. Ac- cording to many commentators, the Continental Airlines case propelled Judge Balick to national prominence. She won admiration for her handling of the case, including her willing- ness to spend very long hours on the bench to finish her docket. Other prominent Chapter 11 cases handled by Judge Balick during the 1990s in- cluded Trans World Airlines and Co- lumbia Gas Systems.
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