Virginia Mega Bankruptcies to Get Random Judges After Purdue Case

The Eastern District of Virginia, a top bankruptcy venue for debtors, 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 rule is meant to provide “efficient, expedient, orderly, consistent, and uniform treatment and administration of Chapter 11 reorganizations and/or liquidations across all divisions within the district, and to provide transparency for the bankruptcy process,” the U.S. Bankruptcy Court for the Eastern District of Virginia said.

The new rule on “mega” Chapter 11 cases goes into effect Tuesday, according to a ...