Bankruptcy Tweets of 2011-2012 Cases - A Year in Review - V.5

Here's more in the continuing "Year in Review" series, catching up on more of my backlog of twitter posts of case developments in the past 12 months.

Each post in this Year in Review series features a different federal courthouse in each state of the Union. The inset photo is of the US Courthouse for the Bankruptcy Court for the Eastern District of California in Fresno, California, where 28 dairies have filed chapter 11 in 2012, and which is home to Bankruptcy Judges Clement, Ford, Lee, and Rimel.

 

 

·         B-UT: $121K fee app. denied entirely for failure to disclose retainer, payments received from major creditor/insider. http://bit.ly/yNNT4u

·         6-BAP affirms dismissal of ttee's complaint seeking avoidance & recovery of prepet noncompensatory penalty pymts to IRS http://bit.ly/xFnxua

·         1-BAP: Silence is implied consent sufficient to satisfy the consent requirement for approving a sale under § 363(f)(2). http://bit.ly/wcfEPB

·         3d: Foreign pension fund protection proceedings don't meet pecuniary or public policy tests for police power exception. http://bit.ly/A9WJiQ

·         7th: Appellate jd over unstayed 363 sale order limited to narrow issue of whether property sold to good faith purchaser http://bit.ly/zcaFVG

·         7th: Challenge to a good-faith purchaser's status is the sole ground per §363(m) to modify sale terms absent a stay. http://bit.ly/zcaFVG

·         7th: Even if Bk Ct shouldn't have stripped away Debtor's interests in property sold, §363(m) prevents its resurrection. http://bit.ly/zcaFVG

·         4th vacates plan's nondebtor releases as "meaningless [without] specific factual findings explaining" essential nature. http://bit.ly/xuhEB3

·         B-PR reviews comprehensive discussions as to the general concept & requirements of PMSIs. http://bit.ly/zqNvDC

·         D-IL: 2 yr limitations period for sec. fraud begins when reas. investor doing timely investig. would uncover violation http://bit.ly/zEGg7A

·         D-IL: Doctrine of Inquiry notice overruled by SCOTUS for statute of limitations analysis in sec. fraud cases. http://bit.ly/zEGg7A

·         D-IL: Per 7th, the more complex the case & more costly the anticip. discovery, the more detail req'd for plausibility. http://bit.ly/wDkM64

·         D-IL: 7th Cir applies "sliding scale approach to plausibility" for Twiqbal purposes. http://bit.ly/wDkM64

·         B-DE: 3d Cir say "new value" is a defense to a pref. if it's unpaid as of BK filing date, even if subseq. paid in case. http://bit.ly/wYRNLv

·         B-DE: No ord. course of biz bec. of tightening credit terms & modified communications & pymt delivery in 90 days pre-BK http://bit.ly/wYRNLv  

·         B-DE: No SJ for dfdts bec. 17 checks for 68 invoices in 11 mo. is insufficient evid of existence of ord. course of bus. http://bit.ly/wYRNLv

·         B-CO: §502(b)(6) cap is based on 15% of remaining TERM of the lease not 15% of the remaining CASH due under the lease. http://bit.ly/wkqkuU

·         B-TX dismisses ch 11 law firm case where no business operations & sole matters are 2 ongoing pieces of litigation. http://bit.ly/yg6DiE

·         B-PA: Bec 363 sale closed, only option given D-PA reversal is to allow out-of-money junior lien to remain on property http://bit.ly/wtdrkh

·         D-PA: Agrees w/PW LLC that no stay of 363 sale is req'd to preserve rights of one whose lien was improperly stripped. http://bit.ly/wtdrkh

·         D-NV: UST can't conduct Rule 2004 into BANA's nationwide policies, procedures & conduct unrelated to specific dbtr case http://bit.ly/zW4kGH

·         D-NV: US Trustee is a “party in interest” under FRBP 2004 & has authority to conduct a Rule 2004 exam. http://bit.ly/zW4kGH

·         7th: Stern prevents B-Ct final jdgmt on dbtr's counterclaim that health care records improp revealed in proofs of claim http://bit.ly/w8bFXf

·         Another outstanding Weil BK Blog post: Aggressive Creditors: Go Overboard, And You May Find Yourself Walking the Plank http://bit.ly/wN3SWR

·         Jones Day: "Universal" Rule--Trademark licenses not assignable in bankruptcy except with express consent of the owner. http://www.bankruptcylitigationblog.com/uploads/file/JonesDay-UniversalRule.pdf …

·         B-DE: §510(b) subordination inapplicable to MBS certificates that weren't securities of the Debtors or their affiliates http://www.bankruptcylitigationblog.com/uploads/file/WAMU-BK-D-DEL-Walrath-12-20-11.docx …

·         B-DE: Claim subord. can be resolved in claim obj. bec. adversary only required if subord. isn't provided in ch 11 plan. http://www.bankruptcylitigationblog.com/uploads/file/WAMU-BK-D-DEL-Walrath-12-20-11.docx …

·         B-DE: Cplt satisfies Twiqbal that WaMu parent controlled MBS-issuing subs for control person liab. per securities laws. http://www.bankruptcylitigationblog.com/uploads/file/WAMU-BK-D-DEL-Walrath-12-20-11.docx …

·         B-DE: Absent offers, settlements, NOLs, or other assets to fund reorg, lender entitled to stay relief per §362(d)(2). http://www.bankruptcylitigationblog.com/uploads/file/JER-JamesonMezz-BK-D-DEL-Walrath-12-22-11.docx …

·         B-DE disagrees with blanket claim that BK not available to conduct orderly liquidation instead of piecemeal foreclosure http://www.bankruptcylitigationblog.com/uploads/file/JER-JamesonMezz-BK-D-DEL-Walrath-12-22-11.docx …

·         B-DE notes split re whether in determining if equity cushion exists per §362(d)(2), all or only senior liens considered http://www.bankruptcylitigationblog.com/uploads/file/JER-JamesonMezz-BK-D-DEL-Walrath-12-22-11.docx …

·         B-DE: "Good faith" filing reqt encompasses several, distinct equitable limitations to deter illegitimate filings. http://www.bankruptcylitigationblog.com/uploads/file/JER-JamesonMezz-BK-D-DEL-Walrath-12-22-11.docx …

·         B-DE compares different standards in 2d & 3d Cirs for dismissal of ch 11 petitions under subjective v. objective stds. http://www.bankruptcylitigationblog.com/uploads/file/JER-JamesonMezz-BK-D-DEL-Walrath-12-22-11.docx …

·         B-KS notes early split re whether Stern has "wide implications" or "should be interpreted narrowly." http://www.bankruptcylitigationblog.com/uploads/file/BrookeCorp-BK-D-Kan-Somers-12-16-11.docx …

·         B-KS: Nothing in §550(a)(1) suggests that liability follows ownership of the obligation on which payment was made. http://www.bankruptcylitigationblog.com/uploads/file/BrookeCorp-BK-D-Kan-Somers-12-19-11.docx …

·         B-KS: Assignee of claim from one receiving preference isn't subject to preference liability since it didn't get funds. http://www.bankruptcylitigationblog.com/uploads/file/BrookeCorp-BK-D-Kan-Somers-12-19-11.docx …

·         B-SDNY: Employee's nonperf of condition precedent to damages under an employment contract can vitiate rejection damages http://www.bankruptcylitigationblog.com/uploads/file/VertisHoldings-BK-SDNY-Gropper-12-21-11.docx …

·         B-SDNY: Severance claim capped per §502(b)(7) disallowed unless CEO signs release provided for in employment agreement. http://www.bankruptcylitigationblog.com/uploads/file/VertisHoldings-BK-SDNY-Gropper-12-21-11.docx …

·         Judge Shadur on the importance of filing removal petitions early so defects flagged before 30 day jurisdictional bar. http://www.bankruptcylitigationblog.com/uploads/file/ZebraTechnologies-ND-IL-Shadur-12-20-11.docx …

·         B-IL: “Cause” under § 363(k) to bar secured creditor from credit bidding when lien is in dispute is inapplicable here. http://www.bankruptcylitigationblog.com/uploads/file/OldePrairieBlock-BK-ND-IL-Schmetterer-12-22-11.docx …

·         B-IL: Sale-not recap-occurs where title to Dbtr's property wont change but control of the Dbtr transfers to new entity. http://www.bankruptcylitigationblog.com/uploads/file/OldePrairieBlock-BK-ND-IL-Schmetterer-12-22-11.docx …

·         B-IL: §1129(b)(2)(A)(ii) is only way a Debtor can cram down a plan that effectuates a sale of a lender's collateral. http://www.bankruptcylitigationblog.com/uploads/file/OldePrairieBlock-BK-ND-IL-Schmetterer-12-22-11.docx …

·         B-IL: Dbtr cant partially strip lien in exchange for cash per § 1129(b)(2)(A)(i) bec parcel once so valued at cash amt. http://www.bankruptcylitigationblog.com/uploads/file/OldePrairieBlock-BK-ND-IL-Schmetterer-12-22-11.docx …

·         B-IL: Single asset real estate plan cant be confirmed over objection of secured under any of § 1129(b)(2)(A)'s 3 prongs http://www.bankruptcylitigationblog.com/uploads/file/OldePrairieBlock-BK-ND-IL-Schmetterer-12-22-11.docx …

·         From Jones Day: WAMU Confirmation denied: Interest Rates, Equitable disallowance and Insider Trading http://www.bankruptcylitigationblog.com/uploads/file/JonesDay-WAMUConfirmationDenied.pdf …

·         From Jones Day: Prepetition severance rights subject to Code section 507(a)(4) priority http://www.bankruptcylitigationblog.com/uploads/file/JonesDay-507a4.pdf …

·         From Jones Day: 2d Cir Settles Meaning of Bankruptcy Code section 546(e) http://www.bankruptcylitigationblog.com/uploads/file/JonesDay-546e.pdf …

·         From Jones Day: Another Blow to Triangular Setoff: Synthetic Mutuality No Substitute for the Real Thing http://www.bankruptcylitigationblog.com/uploads/file/triangularsetoff.pdf …

·         B-DE reminds of the significance of the "grammatical rule of the last antecedent" in contract & statutory interp. http://www.bankruptcylitigationblog.com/uploads/file/Tribune-BK-D-DEL-Carey-12-29-11(1).docx …

·         B-DE: Fr. tsf claims aren't assets of the dbtr even if the Code empowers a dbtr to pursue them for benefit of creditors http://www.bankruptcylitigationblog.com/uploads/file/Tribune-BK-D-DEL-Carey-12-29-11(1).docx …

·         B-DE reverses itself: Broad contractual subord provisions prevent jr. claimants from sharing w/sr. in fr tsf recoveries http://www.bankruptcylitigationblog.com/uploads/file/Tribune-BK-D-DEL-Carey-12-29-11(1).docx …

·         SDNY wonders if a corporate parent owes fiduciary duties to its wholly-owned subsid. once that sub becomes insolvent. http://www.bankruptcylitigationblog.com/uploads/file/BHSandB-SDNY-Kaplan-9-6-11.pdf …

Thanks for reading!  More to follow.