Bankruptcy Tweets for May 2011 - Part III

Below are my twitter posts since my last post of May 15 of recent cases that are sure to be of interest to the bankruptcy practitioner and judge.  RSS Feeds are also available. 

In these and future Twitter postings, I'll try and include some interesting graphics that I've seen of late.  This one, Sitting is Killing You, is from the Infographics website:

  • D-IL: Ch 7 debtor's adversary re absence of tax liab for closed years isn't justiciable where IRS doesnt assert claim due.
  • BK-NE: Extreme diligence by reclamation cr. to preserve rts not nec where sale order preserves & transfers rts to proceeds
  • BK-IL: Post-petition severance payment to ch 7 debtor mostly due to prepetition services & not exempt as unempl. benefit.
  • BK-IL notes split whether debtor can redeem property from tax sale in Ch 13 plan if redemption pd expires during BK case.
  • BK-CA: DIP loan to Ch 11 Trustee denied; record silent on benefits from funding or adequate protection to senior lenders.
  • BK-SDNY: Constr fraudulent transfer case ag Daimler dismissed w/prej; host of intangible benefits make claims implausible
  • BK-SDNY: Termination of swap agr. ok but agr's lowering of distrib priorities to LBSF upon BK was void ipso facto clause.
  • BK-SDNY permits postconfirmation plan modification extending liquidating trust's duration to continue legal mal. case.
  • BK-NJ:Invol. petition dismissed bec "under totality of circumstances" debtor was generally paying debts as they came due.
  • BK-NC denies sec. cr cram down: unfairly treats defic. claim; no indubitable equivalence in partial return of collateral.
  • BK-NC:Indubitable equivalence std not "mere preponderance" or "beyond reas. doubt," but like getting cash @ confirmation.
  • BK-TX: Well-cited Clark, J. op. avoiding constr. & intentional fraudulent transfers to business associates and attorney.
  • 11th Cir: Obvious that §525(b) permits a private employer to "deny employment to" an individual who is or was bankrupt.
  • D-NM: Core & "related-to" jd exists in O&G case, incl. over non-debtors' disputes re O&G purchased from debtors.
  • BK-HI: Ponzi schemer's payoff of original stock inv. isn't restitution but a voidable distribution under HI Bus Corp Act.
  • 7th: Limited circumstances exist under which a creditor may bring an action in place of, and in the name of, the trustee.
  • 7th: Creditor can supplant trustee only when it fails to honor cr. priority & "unjustifiably refuses" to enforce cr. claim
  • BK-SDNY: Client bears risk of loss when atty. Dreier forged its signature to settlement agreement & absconded with funds.
  • BK-FL: Trustee doesn't own alter ego claims where injury is specific to a creditor & not to debtor & creditors generally.
  • 6th Cir.: Dana shareholders adequately pled a strong inference of scienter against both the officers and the corporation.
  • BK-TX (Clark): Code § 505(a)(1) doesn't confer subj. matter jurisdiction to decide tax liability issues of non-debtors.
  • BK-TX (Clark) examines core/noncore distinction in contract claims/counterclaims context when no proof of claim is filed.
  • BK-TX(Clark): BK jurisdiction encourages & rewards forum shopping strategies & ct cant deny relief bec of forum shopping.
  • BK-TX (Clark): Question in mand. abstention is only if case can be timely decided in state ct, not more timely decided.
  • 7th asks, but doesn't resolve, the "open question" of whether a BK Ct may direct that assets be abandoned to a nondebtor.

Thanks for following!

© Steve Jakubowski 2011