Sitting on the Sidelines During a Bankruptcy Can Result in Catastrophic Consequences
Bill Siegel discusses the Fifth Circuit holding in Raymond James v. Jalbert (In re: German Pellets La., LLC) - and the consequences for a creditor who opts to "sit on the sidelines" of a bankruptcy.
Bankruptcy Court’s Treatment of Defaults in Executory Contracts
Bill Siegel discusses Hawkeye Entertainment and executory contracts in situations where a lease relates to a bankruptcy.
The “Notwithstanding” Clause May Not Control
What effect does the "notwithstanding" clause in an agreement have over a specific provision of a contract?
If Bankruptcy Occurs on the Eve of Trial, Is There Cause to Modify the Stay?
Bill Siegel looks at Ornagevale LLC - and whether a debtor who filed bankruptcy on the eve of trial had a commercial lease that had terminated or could be assumed, and whether cause existed to lift or modify the stay.
Landlord Tenant Issues: Terminating a Lease and Writ of Possession
Whether a landlord seeks to terminate a lease, or terminates right of possession, or chooses neither when seeking to evict a tenant can have consequences if the tenant files bankruptcy.
Is Commercial Lease Termination a Fraudulent Transfer? Circuit Courts Differ
Bill Siegel looks at whether commercial lease termination is a fraudulent transfer - and the differing outcomes in the Seventh and Third Circuit Courts of Appeals.
Creditors Catch a Break on Preference Actions and the New Value Defense – Re: Claims for 20-Day Shipments
When a debtor receives a shipment of goods within 20 days before the date it files bankruptcy and has failed to pay for said shipment prior to the bankruptcy filing, the creditor is entitled to an administrative claim, which is the highest priority in terms of unsecured claims. Further, [...]
Creditors’ Rights Against Officers and Directors
Bill Siegel was invited to write an article for the Bankruptcy spotlight in the May 2023 edition of the Dallas Bar Association's Headnotes publication. We are sharing the article here, with permission from the DBA. Directors of corporations or managers of limited liability companies (“LLC”) owe a fiduciary [...]
The Texas Two-Step is Alive and Well…But a Judge Dismissed the J&J Bankruptcy Absent Financial Distress
Remember the Texas Two-Step? Well, it is alive and well, but lessons can be learned from the dismissal of the LTL Management, LLC bankruptcy. Background (Bill Siegel first discussed this J&J litigation, the “Texas Two-Step,” and how a divisive merger is created – in his April 2022 article.) [...]
Are Lessees Entitled to Protection Upon a Bankruptcy Court-Approved Sale of Property Free and Clear? Yes, Under Certain Circumstances
In In re Royal St. Bistro, LLC, 26 F.4th 326 (5th Cir. 2022), the U.S. Court of Appeals for the Fifth Circuit recognized the rights of lessees when the debtor sells an asset free and clear of all liens, claims and encumbrances. The focus is not necessarily under bankruptcy [...]
