Supreme Court Declines to Take Up Solvent Companies’ Appeal of Chapter 11 Penalties

The U.S. Supreme Court declined to review whether solvent companies can move through bankruptcy without paying prepayment penalties and contractual interest, a question that has divided judges nationwide.

The nation's highest court said Monday it wouldn't hear separate appeals from California utility PG&E and natural-gas driller Ultra Petroleum, which argued that bankruptcy law should let them off the hook for $200 million and $387 million, respectively, that lower courts ordered them to pay to their creditors.

Both...