Bankruptcy Tweets for August 2011 - Part II

All caught up...  Below are my next 54 bankruptcy case tweets of August 2011 and 8 other tweets of general interest since my last post of August 24.  RSS Feeds are also available.  All my twitter posts are here (twitter) or here (blog).

The chart from a post entitled The Brand New Scariest Jobs Chart Ever is the "Money Game Chart of the Day" for 8/5/11. 

Bankruptcy Cases and Topics

  • B-SDNY in Dreier case vs. Wachov reviews law re propriety of collapsing transactions in analyzing fraudulent tsf issues.
  • B-SDNY agrees that pltf only req'd to plead fraudulent intent of transferor under NY intentional fraudulent tsf law.
  • B-SDNY: NY Law of "fair consideration" in Ponzi scheme requires tsfee act in good faith & shouldnt have known of Ponzi.
  • B-SDNY: Having reason to question Dreier's honesty/acctg of funds, isn't equiv. to actual or constr knowledge of Ponzi.
  • B-SDNY dismisses fraudulent tsf & preference actions vs Wachovia in Dreier Ponzi under FRCP 12(b)(6) w/leave to replead.
  • B-SDNY: Substantially contemp. for pref. defense is case-by-case, but 3 day perfection delay is virtually simultaneous.
  • B-SDNY-Foreign Rep seeking emails only got ex parte relief in UK, but no ex parte ch 15 relief here as ag. publ. policy.
  • B-CT looks to Black's Dict. & sees no "scheme" here to hinder creditors that justifies lifting stay per §362(d)(4)(A).
  • B-FL: Forfeited earnest money deposit for real estate contract subject to the lien of mortgage lender, not UCC lender.
  • B-KS: agree w/minority that §1409(b) venue limits dont apply to avoidance actions per plain meaning of "arising under.
  • B-TX: Equitable tolling not apply to §549 claim where applic. depends on conduct of a 3d party and not the defendant's.
  • D-NV: Bank didnt waive right to demand full payment & to immediately foreclose simply bec adeq. prot. order was entered.
  • B-DC: Motions to remand or that Ct lacks subject matter JD are core proceedings that BK Ct can enter final orders on.
  • B-SDNY reminds that Cts generally won't modify loan agreements imposing default interest rates, esp for solvent debtor.
  • B-MD won't approve discl. st. for fatally flawed plan w/improper releases: "to do so would be an exercise in futility."
  • B-IL strikes $13.9M proof of claim not electronically filed by FL atty, who compounded his error w/several more. Ouch!
  • B-TN reminds that focus of reasonably equivalent value issue is on value received by the debtor not the transferee.
  • B-IL:Pltf in §523 case precluded by judicial estoppel from bringing fraud claims that weren't part of state ct. jdgmt.
  • BK-MS wont enjoin LA Distr Ct from proceeding w/ nondebtor litigation absent explicit authority empowering Ct to do so.
  • SDNY: §502(d) is pers. disabil. of claimant-not claim attribute; it only attaches to "pure assignment" (vs. sold) claim.
  • B-DE: D&O get defense costs bec. RICO, Avoidance, & "Covered Matters" actions are "Related Claims" under D&O Policy.
  • B-MA: 100% of FMV on a debtor's Schedule C "should be like catnip to a trustee," so failure to timely object is fatal.
  • B-TX agrees that unsec. cr. can't get postpet. fees & costs-even if contract permits them-under ch 11 plan paying 100%.
  • 11th: Sov. Immun. shields FL DOR & VA DSS from claims for stay violations in trying to collect prepet. interest on DSO.
  • D-TX: ERISA plan insurer states valid claim for constructive trust on collected premium not turned over & swept by BOA.
  • D-KY cuts atty fees award to K&E for contract breach by 2/3; case not difficult and Ashland, KY local rates sufficient.
  • B-SDNY applies 2d Cir Enron op. & holds that cash tsf to fin. inst. as agent for redemption meets §546(e) safe harbor.
  • B-IL doubts §523(a)(2)(A) false pretenses claim can be sustained w/out proof of positive acts to further the deception.
  • B-AZ: Litigation dgs. owed to dbtr for atty fees arent limited by what dbtr actually paid attys as unsec cr. of estate.
  • B-SDNY extends time to complete defective service on corp (named officer not req'd); doesnt dismiss bec lim. pd had run.
  • B-MI permits UST's Rule 2004 exam ag. BofA re practice & procedure in filing claims for possible abuse of BK process.
  • B-AL: Golf course subject to implied restrictive covenant to operate prohibits 363 sale free & clear of such covenant.
  • B-SC: Bona fide dispute exists under §363(f)(4) if there's an obj. basis for disputing validity of asserted interest.
  • B-TX: Cplt for turnover of disputed debt per §542 not dismissed per FRCP 12(b)(6) unless recovery not available at all.
  • B-TX reviews separate doctrines of abstention/remand/removal & procedural devices of "mand. remand" & "mand. removal."
  • B-IL: Filing an Objection to Discharge is a complaint that-while deficient in form-was timely filed & could be amended.
  • D-CO: LLC member lacks standing to appeal a Court order for relief granting an involuntary petition.
  • D-CO acknowledges validity of provision in LLC operating agr. prohibiting management from filing a bankruptcy petition.
  • B-IL acknowledges that Twiqbal standards lessened when individual info of Def.'s role uniquely w/in Def.'s knowledge.
  • B-IL acknowledges that Twiqbal standards lessened in BK where necessary information is 2d hand & records in disarray.
  • B-TX reviews scope/extent of stay applicable to property owners assn dbtr re common area / assessments / rents / dues / fees.
  • B-DE dismisses aiding & abetting breach of duty/conspiracy claims vs ttee's agents for mismanaging value of I/O strips.
  • B-MD denies all fees to conflicted attys who rep'ed dbtr & simultan. rep'ed largest creditors in unrelated st. ct case.
  • 5th amends remand ruling to permit partial recovery on $29.7 admin claim if nec. to avoid equitable mootness concerns.
  • B-TN reviews case split & adopts narrower view that absolute priority rule still applies in individual chapter 11 case.
  • B-SDNY: To get prepet. prejdgmt interest on P/C in BK, NYCPLR requires "sum awarded" by judgment, verdict or decision.
  • 2d Cir: Use of the "Net Investment Method" by Madoff Trustee for calculating the "net equity" of customers was proper.
  • 2d Cir: Madoff Trustee not obligated to step into defrauder's shoes or treat customer statements as reality.
  • 2d Cir: SIPA doesnt prescribe a single way of viewing "net equity" in the myriad situations types of SIPA liquidations.
  • 2d Cir, in rejecting "Last Statement Method," doesn't hold that this way of calculating "net equity" is impermissible.
  • 7th: Unless buyer particip. in alleged fraud, rescinding 363 sale not approp. on alleged SH fraud in joining invol pet.
  • 5th compares its "practical," "less stringent" std re "finality" in BK appeals w/ "rigid rule of finality" of 2d Cir.
  • 5th Cir distinguishes 3d Cir break-up fee cases requiring proof per §503(b) of necessity to "preserve value of estate."
  • 5th affirms break-up fee per §363(b) stds-not §503(b)-where order was issued before bidders incurred due dilig. fees.

Topics of General Interest

  • Good 11 yr old Texas Monthly profile re "It's Rick Perry's Party Now" A profile of the latest GOP pres. candidate.
  • Reports from inside :"there was 'nothing but shooting and sounds of explosions, no water, no electricity.'"
  • Now this is hardball politics! I still prefer the more captivating story, however unlikely, that Mossad poisoned him.
  • Read Judge Posner's quick take on the London riots. RT : Becker-Posner Blog: The English Riots—Posner.

Thanks for reading!

Post A Comment / Question

Remember personal info?