In this issue:
- Are Breakup Fees at Risk?
- Credit Bidding Rights Limited, Capped by Debt Purchase Amount
- Court Upholds Creditor’s Security Interest Despite Post-Petition Lapse of Financing Statement
- Trustee Can Use Lien-Creditor Status and Avoidance Power Defensively, Even After Limitation Period
- Denying Summary Judgment, Court Holds that ORRI May Face Recharacterization as Debt
- Preference Decision May Expand Circumstances in Which Trustees Seek Recovery from Senior and Junior Lienholders
- Liens May Attach Where Parties Clearly Intended, Even Where Deed of Trust is Deficient
- Separate Judgments against Husband’s and Wife’s Guaranties of the Same Loan Cannot Be Consolidated
- Individual Committee Members Must Make a ‘Substantial Contribution’ to Receive Payment of Attorney’s Fees
- Payment of Claimant’s Fees Under Section 506(c) Only Made in Narrow Circumstances
- A New Value Chapter 11 Plan Requires a Genuine Market Test to Avoid Absolute Priority Rule Violation
- Continuing the Split, Court Rules Debtor Has No Possessory Interest in Web Address and Phone Number
- Chapter 11 Debtor May Not Use or Allocate Rents to Bifurcate Creditor’s Claim
- Court Analyzes Whether Hotel Revenues are an Interest in Real or Personal Property
- Court Upholds Insider Releases Because of Substantial Contributions of New Value
- Court Denies Confirmation Because of Failure to Obtain Informed Consent of Third-Party Releases
- Settlement Payment Constitutes Antecedent Debt in Preference Action
- Counsel’s Corner: News from Reed Smith
- Excerpt from Preference Decision May Expand Circumstances in Which Trustees Seek Recovery from Senior and Junior Lienholders:
In re Vassau, 499 B.R. 864 (Bankr. S.D. Cal. 2013)
In a chapter 7 case, the Bankruptcy Court for the Southern District of California held that payments made to a fully secured first lienholder could be preferential transfers as to the undersecured junior creditor, who received no money but received the benefit of an increase in their equity position as a result of the payments paying down its debt.
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