Should a claim for appraisal rights brought by a former shareholder of a Chapter 11 debtor be subordinated under Section 510(b) of the Bankruptcy Code? According to the Bankruptcy Court for the District of Delaware, the...more
In a recent decision, the Court of Appeals for the Sixth Circuit held that the election of a tenant, under Section 365(h) of the Bankruptcy Code, to remain in possession of real property governed by a rejected lease causes a...more
Analyzing the inner workings of the elements required for the securities contract “safe harbor” protection under Section 546(e) of the Bankruptcy Code, the Bankruptcy Court for the SDNY dismissed a complaint seeking to...more
It is well established that by filing a proof of claim in bankruptcy, a creditor submits itself to the equitable jurisdiction of the bankruptcy court and waives any right it would otherwise have to a jury trial with respect...more
Two courts recently answered “yes,” finding that environmental claims brought against reorganized debtors by government entities were discharged under confirmed Chapter 11 plans of reorganization. In In re Exide Techs., 613...more
5/15/2020
/ Air Pollution ,
Appeals ,
Bankruptcy Code ,
Bankruptcy Discharge Order ,
Batteries ,
Carve Out Provisions ,
Chapter 11 ,
Civil Monetary Penalty ,
Coal Industry ,
Commercial Bankruptcy ,
Common Law Claims ,
Corporate Restructuring ,
Debtors ,
Dischargeable Debts ,
Enforcement Actions ,
Environmental Violations ,
Fines ,
Fraud ,
Global Warming ,
Municipalities ,
Permanent Injunctions ,
Police Power ,
Proof of Claims ,
Public Nuisance ,
Recycling ,
State Regulators ,
Strict Liability
Disagreeing with the much-critiqued SDNY opinion in Enron, the SDNY bankruptcy court disallowed claims brought by secondary transferees because the original claimants allegedly received millions of dollars in fraudulent...more
4/29/2020
/ Avoidable Transfer ,
Bank Fraud ,
Bankruptcy Code ,
Banks ,
Chapter 11 ,
Commercial Bankruptcy ,
Corporate Crimes ,
Criminal Proceeds ,
Debtors ,
Fraudulent Transfers ,
Secondary Markets ,
Section 502
Answering “no” to a certified question from the Fifth Circuit, the Supreme Court of Texas held that a transferee on inquiry notice of fraud cannot shield itself from clawback without diligently investigating its initial...more
1/16/2020
/ Affirmative Defenses ,
Appeals ,
Bankruptcy Code ,
Clawbacks ,
Creditors ,
Debtors ,
Failure to Investigate ,
Fraud ,
Fraudulent Transfers ,
Good Faith ,
Inquiry notice ,
Internal Investigations ,
Investors ,
Stanford Ponzi Scheme ,
Transferees ,
TX Supreme Court ,
UFTA
In the fifth opinion involving the repo liquidation saga of HomeBanc, the Third Circuit addressed several crucial issues involving the liquidation and valuation of repo collateral in bankruptcy. In re HomeBanc Mortg....more
1/7/2020
/ Affiliates ,
Appeals ,
Auction ,
Automatic Stay ,
Bankruptcy Code ,
Bid Solicitation ,
Buyers ,
Chapter 11 ,
Chapter 7 Conversions ,
Collateral ,
Commercial Bankruptcy ,
Damages ,
Default ,
Deficiency Judgments ,
Foreclosure ,
Good Faith ,
Inside Information ,
Investment Banks ,
Liquidation ,
Mortgage Lenders ,
Mortgage-Backed Securities ,
Mortgages ,
Repossess ,
Safe Harbors ,
Securities ,
Sellers ,
Trustees ,
Valuation
The Bankruptcy Court for the Southern District of New York recently held that a foreign counsel cannot be sanctioned for an attempt to assist its client in avoiding discovery orders issued by the court, when personal...more
1/31/2018
/ Commercial Bankruptcy ,
Contempt ,
Discovery Disputes ,
Extraterritoriality Rules ,
Foreign Bankruptcies ,
General Jurisdiction ,
Long Arm Statute ,
Minimum Contacts ,
Motion to Compel ,
Personal Jurisdiction ,
Post-Judgment Enforcement Actions ,
Sanctions ,
Specific Jurisdiction
U.S. Bankruptcy Rule 9019 provides that on a motion brought by a trustee (and thus a chapter 11 debtor-in-possession as well) the court may approve a settlement. The prevailing view is that due to the court’s approval...more