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District Court Criticizes Bankruptcy Judge for Approving Far-Reaching Third-Party Releases and Addresses Venue Shopping
A U.S. District Court judge in the Eastern District of Virginia1, Richmond Division, set aside confirmation of a Chapter 11 plan that contained “extremely broad third-party (non-debtor) […]
Bankruptcy Auctions and the Establishment of Fair Market Value
There is a reason why a buyer of substantially all of a seller’s assets may want to pursue a sale via the buyer filing bankruptcy, through a bankruptcy auction. […]
Enforcement of Arbitration Clauses – Related to Bankruptcy
Discussion of: Highland Capital Management LP v. Dondero (In re Highland Capital Management LP), 21-03003, 2021 Bankr. LEXIS 3314 (Bankr. N.D. Tex. Dec. 3, 2021)
Bankruptcy courts are in disagreement […]
Creditors Precluded from Collaterally Pursuing Claims Against Third Party/Guarantor, if Treated/Released in Confirmed Re-Org Plan
In New Falls Corp. v. LaHaye (In re LaHaye), No. 19-30795 (5th Cir. Nov. 12, 2021), the Fifth Circuit Court of Appeals prevented a secured lender from pursuing […]
The Texas Two-Step is Alive and Well
See a related update, published Feb. 16, 2023.
In re LTL Mgmt. LLC, No. 21-30589 (MBK) [Docket No. 1572] (Bankr. D.N.J. 2021)
Other than being a dance, what […]
Capped Landlord Claim Could Become a Non-Dischargeable Claim
re: Wigley v. Lariat Cos. (In re Wigley), No. 20-3132 (8th Cir. Oct. 18, 2021).
The Bankruptcy Code provides for a statutory cap on a landlord’s claims […]
A Guide on How to Avoid a Clawback of a Settlement Payment of Securities
Discussing: Holliday v. Credit Suisse Securities (USA) LLC, No. 20-5404 (S.D.N.Y. Sept. 13, 2021)
Subject to certain defenses, in a bankruptcy proceeding, transfers made to a creditor […]
Classifying Claims in a Plan of Reorganization – Creating an Accepting Class
Section 1122(a) of the Bankruptcy Code provides that “a plan may place a claim … in a particular class only if such claim … is substantially similar to the […]
A Secured Creditor’s Right to Credit Bid in a Bankruptcy Sale
Generally speaking, when a debtor or trustee in bankruptcy seeks to sell certain assets, a secured creditor has a right to “credit bid” the secured portion of its claim.
Section […]
Circumstances Justifying the Dischargeability of Student Loans Under the Bankruptcy Code
re: Homaidan v. Sallie Mae, Inc., et al., No. 20-1981 (2d Cir. July 15, 2021)
Generally speaking, student loans are extremely difficult to discharge in bankruptcy even under dire […]
Recent Fifth Circuit Case Gives Lender Green Light to Change Management
The Fifth Circuit Court of Appeals recently upheld a lower court ruling permitting a lender to change management pursuant to a negotiated agreement notwithstanding the debtor’s allegation that it […]
Sales in Bankruptcy – No Stay, No Pay
Official Comm. v. Walker Cty. Hosp. Dist. (In re Walker County Hospital Corp.), No. 20-20575, 2021 U.S. App. LEXIS 20610 (5th Cir. July 12, 2021)
The Fifth Circuit Court […]
The Purpose of Special Purpose Entities
The American Bankruptcy Institute describes a Special Purpose Entity (SPE) as an entity formed concurrently with, or immediately prior to, the closing of a financing transaction…to isolate the financial […]
A Recent Decision Recharacterizing Debt to Equity Under Delaware Law Could Have Far-Reaching Implication
A recent decision out of the Bankruptcy Court for the Southern District of New York1 interpreting Delaware law will probably impact other decisions throughout the country in light of […]
What Rights and Possible Exposure to Consequences Arise for Tenants When a Real Property Lease is Rejected by a Bankrupt Landlord?
Section 365(h) of the Bankruptcy Code provides special protection for non-debtors who have rights as tenants if a trustee or Chapter 11 debtor landlord rejects an unexpired lease. The […]
