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.
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.
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 [...]
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 [...]
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 [...]
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, [...]
Nondischargeable Debt: Corporate Officer Cannot Hide Behind Corporate Shield on Claim Based on Fraud
[Regarding: Glencove Holdings, LLC v Bloom (In re Bloom), No. 22-1005 (10th Cir. July 12, 2022)] The Tenth Circuit Court of Appeals recently affirmed the bankruptcy court and bankruptcy appellate panel rulings that a debtor owner and officer of [...]
Lender liability lawsuits have generally been few and far between. However, recently, a Chapter 7 trustee obtained a judgment against a lender premised on the lender’s bad acts against the debtor prior to the filing of a bankruptcy Chapter [...]
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) releases.” What makes this case so exceptional is the analysis, and also [...]