N.Y. Mega Bankruptcies to Get Random Judges After Purdue Furor (2)

The Southern District of New York, one of the most sought-after bankruptcy venues, will randomly assign its judges to large Chapter 11 cases that are worth at least $100 million, regardless of which of its courthouses first received the initial filing.

The new rule on “mega” Chapter 11 cases, which goes into effect Dec. 1, will result in a “more balanced utilization of judicial resources,” the U.S. Bankruptcy Court for the Southern District of New York said Monday.

As a result of the new rule, an SDNY judge who’s assigned to a case may preside over it in a courthouse ...