Bankruptcy Tweets for August 2011 - Part III

Below are my last 51 bankruptcy case tweets of August 2011 and 6 other tweets of general interest since my last post of August 25.  RSS Feeds are also available.  All my twitter posts are here (twitter) or here (blog).  

Twitter doesn't seem very Google-friendly so it seems the only way to search for these tweets through Google is by posting them on my blog, which is why I'm now catching up on posting my tweets to the blog.

The chart from a post entitled The Housing Dip Continues is the "Money Game Chart of the Day" for 8/30/11. 

Bankruptcy Cases and Topics

  • B-DE lacks S-M JD over post-conf. related-to actions vs NYS not reserved in plan; incr. recoveries give insuffic nexus.
  • B-SDNY analogizes Madoff's co-founder to Icarus who flew giddily towards Madoff until his wings of innocence melted.
  • MD-FL: Dbtr's discov. failures mean evid of $200M forfeiture settlement & any "adverse tax conseq" excluded from trial.
  • MD-FL: Atty lien wont attach to plan payments; conf. order is final jdgmt & lien notice must issue bef. jdgmt entered.
  • B-FL: §506(c) overrides state law under which lenders aren't required to pay condo assessments during foreclosure case.
  • B-MI allows small bs. plan to proceed w/out required extension under §1129(e) bec debtor was diligent & issues complex.
  • B-TX: Noncollusive foreclosure complying w/state law avoidable as pref. if cr. gets prop. for less than in hypoth. liq.
  • B-TX reviews circuit split―& unpalatable resolution―re extent of postpet. pre-rejection rent due under §365(d)(3).
  • B-TX adopts 4th Cir. Midway that §365(d)(3) allows a landlord to recover an administrative expense under §503(b).
  • B-TX analyzes landlord right to stub rent, holdover/pre-rejection period & post-rejection/pre-vacancy period.
  • B-MT holds per Stern ok to decide eq. subord & pref. actions but not fr. tsf ones bec they arent w/in public rts excep.
  • B-MI: Deferred payment to 1-time funeral home creditor not pref. bec credit extensions w/in ord course of its business.
  • 8-BAP: Per Stern, removed replevin actions against nondebtor cos. arent core bec they dont arise in or under a BK case.
  • SDNY: Sec. Pltfs appeal of 3d party releases equitably moot for failure to object at conf. or seek stay pending appeal.
  • B-ND wont lift stay or dismiss case on eve of foreclosure sale even where CEO makes seeming low-ball offer for asset.
  • D-AZ concluded presumption ag. fraudulent joinder wasn't rebutted, so diversity jurisdiction destroyed & case remanded.
  • B-TN: Prior NY law requiring LLC's dissolution upon BK filing of a member is rendered ineffective by § 541(c)(1).
  • B-TX: Dischargeability right & amount nondischargeable is central to public BK scheme, so BK Ct can rule on per Stern.
  • B-MA reviews enforceability of entity's voluntary agreement not to file BK; gen. requires indep. showing of bad faith.
  • B-MA: BK filing for sole purpose of frustrating imminent foreclosure is not in & of itself bad faith.
  • B-MA: State Ct. injunction ag. right to file BK or to convey property to enable BK filing is overbroad & unenforceable.
  • B-MI concludes per Stern can enter final orders in 363, 303, 362, 524, claims resolution & (maybe) 1123(b)(6) matters.
  • B-MI asks: Would citing to Murray's have derailed GM 363 sale bec Art. III judges & adjuncts can't enter such an order?
  • Weil Bankruptcy Blog post collects some of the cases interpreting Stern v. Marshall.
  • B-MD: Whether debtor is a "business trust" per §101(9)(A)(v) is a federal question independent of state law rules.
  • B-MD: Debtor is "business trust" per §101(9)(A)(v) if "primary purpose" is to carry on business & not to preserve res.
  • B-NJ: §506(b) applies only to postpet. int/fees/costs; prepet. penalties/int/fees/costs governed by §502 not §506(b).
  • B&W Creditor Blog: Coudert Brothers LLP Bankruptcy: Development Specialists, Inc. v. Orrick Herrington & Sutcliffe.
  • D-IL: Attorney-client privilege wont survive a corp.'s death; Ct reviews factors to determine whether corp. has "died."
  • B-MT: Funds sent by 3d parties to indiv ch 11 dbtr's atty as retainer was gift that ch 7 trustee owned upon conversion.
  • D-NY: IRS not objecting to liq. trust's claim of liability doesnt deprive BK Ct of post-conf. JD to fix liab. per §505.
  • SDNY: Claims of fraudulent inducement to enter into guaranties not ground for invalidating jury waivers therein.
  • D-LA: Per FRBP 8003(a), obtaining leave to appeal interloc order w/out filing sep. motion for leave is fatal to appeal.
  • D-NC: No "unusual circumstances" warrant extension of stay to nondebtor's counterclaim against nondbtr co-pltfs w/dbtr.
  • D-DEL dismisses appeal of Spansion confirmation order on equitable mootness grounds under Continental 5-factor test.
  • B-VI notes circuit split re if burden of proof for intentional fraudulent tsf is clear & convincing or preponderance.
  • B-VI, applying Stern, issues final jdgmt on §548/549 issues, but if―Stern read broadly―only a report on §544(b) issue.
  • B-VI: Courts have relied on the word "value" in § 550(a) to authorize a pre-jdgmt interest award in avoidance actions.
  • B-VI: §544(b) standing exists only if an unsec. cr. exists who can assert the requisite nonBK cause of action.
  • B-VI: Imputation doctrine can attribute officer fraud to corp in fraudulent tsf, subject to rules re adv. int. excep.
  • D-AL: Mutual releases in plan between debtor & insiders appropriate where plan funding came from insiders in exchange.
  • D-FL reminds about the complications on appeal of a BK judge adopting counsel's proposed order nearly verbatim.
  • D-FL: Lease dispute w/dbtr is noncore: involves no subst. BK rt, is governed by state law & can be decided out of BK.
  • 5th: BK Cts can recharacterize any debt to equity (not just insider claims) as part of inherent authority under §502.
  • 5th: Actual notice of bar date required for known crs., while publication notice in WSJ is sufficient for unknown crs.
  • D-OH: Individualized dgs. recoverable under UFTA doesn't mean an indiv. cr. has stdg in a BK to bring a fr. tsf action.
  • D-OH cites to cases that once BK filed, cr. loses standing to bring fr. tsf, alter ego, or RICO claims ag 3d parties.
  • D-OH denies nondbtr's claims ag dbtr's atty for aiding a fr. tsf bec injury is general & common to dbtr & all crs.
  • D-OH: Whether dgs general/specific, not sep./sameness of pool of money, determines nondbtr's rts to sue 3d parties.
  • B-PA: Absent express lang. in stip, funds escrowed in adeq prot stip for taxes aren't in trust for sec cr or tax body.
  • D-KY: Notice of appeal too late bec BK Ct's deferring issue of post-jdgmt int./fees didnt change final nature of jdgmt.

Topics of General Interest

  • Indeed a great read @johnpmcdermott   Tony Blair's ostensibly contrarian column on the cause of the riots @guardian
  • Remembering my Mom, A"H, who survived the Holocaust & rebuilt w/ dignity, on the 5th anniv. of her passing. Story here:
  • Dow surges 322 points on news that DC hit by large earthquake.  @alexjakubowski
  • Widespread Radiation in Japan-Latest data point to cesium spreading, potentially contaminating rivers, lowland & ocean.

 Thanks for reading!