Below are my twitter posts since my last post of May 29 of recent cases that might be of interest to you. RSS Feeds are also available. 

 

This graphic, Facts About the Internet, is from the Infographics website:

 

  •  BK-SDNY: Time spent by Deloitte in preparing billing & fee apps unreasonable at 8% of total time billed; Ct. awards 4%.

 

  • BK-MD:Ct lacks "related-to" jd. if tort claimants seek recovery only from ins. proceeds & not from reorg debtor’s assets.

 

  • ND-TX:No action ag. 1 syndicate bank for failing to fund bec fin agr breached when other banks didnt get unanim. consent.

 

  • BK-OR:No summ jdgmt on whether "swing-load" arrangements in nat gas industry are ordinary comm. transactions & not swaps.

 

  • D-LA: TX Bk Ct has JD over state court DJ action re if O&G lease was terminated before being sold to buyer in 363 sale.

 

  • D-CA: Exculpation & reimb. language in post-confirm. liquidating trust doc inapplicable given trustee’s gross negligence.

 

  • BK-DE:Parent’s agent’s grant of security interest in sub’s assets is enforceable if it otherwise satisfies UCC Article 9.

 

  • BK-CT: Neither comfort order nor §363(b) provide basis for retaining environ. consultant in ord. course, but §1108 does.

 

  • BK-AL: Colonial Bk Plan violates "best interest" test by paying expenses of plan committee in addition to plan trustee’s.

 

  • BK-PA:Secured creditor’s plan not fair & equitable if proposed sale of debtor’s property post-confirm. won’t realize FMV.

 

  • 9th: Attorney’s sanctions upheld for filing notice of removal frivolously & in bad faith to delay state ct. proceedings.

 

  • D-LA:Payments on electricity requirements contract not preferential bec payments were settlements under forward contract.

 

  • BK-NJ:"Collapsing doctrine" inapplicable to avoid mortgage that cashed out founder where no pre-existing creditors exist.

 

  • BK-SDNY: §108 tolling provisions automatically apply in Ch. 15 cases under straightforward statutory reading of §103(a).

 

  • BK-NC: Well cited opinion analyzes issues of core/noncore, mandatory & permissive abstention, jury trial rts, eq. remand.

 

  • BK-SDNY:Fairfield Sentry (Madoff feeder) foreign liquidators allowed to bring foreign avoidance claims in Ch 15 BK cases.

 

  • SDNY reverses §524(g) injunction favoring Pfizer in Quigley BK, holding product liab. claims aren’t based on ownership.

 

Thanks for following!

 

© Steve Jakubowski 2011

 

 

 

 

 

 

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

Below are my twitter posts since my since my last post of May 8 of recent cases.  Several cases were relevant to matters I’m presently working on, so I’m sure many of you will similarly find a number of these cases of interest.  RSS Feeds are also available for those wanting instant gratification:

  • D-NJ: Pending BK case is proper venue for all "related to" actions & Ct not bound by contrary forum selection clause.
  • BK-CD-IL: Travel time ok but time for routine motions slashed where attys were "over-preparing for a battle with no foe."
  • BK-SDNY reminder-DE parent owes fiduciary duty to insolvent subsidiary & creditors have standing to enforce such duties.
  • 7th: Easterbrook on "best efforts" clauses in negotiations – party need not sacrifice its own interests in the process.
  • 7th: Easterbrook on "good faith" negotiations: be honest & don’t opportunistically exploit the other side’s sunk costs.
  • BK-DE: Trustee need not plead transferors’ fraudulent intent with particularity; alleging "badges of fraud" sufficient.
  • BK-IL: Debt arising from an intentional breach of contract isn’t excepted from discharge under § 523(a)(6).
  • BK-FL: Subst. consolidation of Perlman cases proper even if it destroys the trustee’s "wrong payor" avoidance actions.
  • BK-TX: Standards for fee enhancement to restructuring mgrs governed by 2006 Mirant case, not 2010 SCOTUS op. in Perdue.
  • BK-ND-CA: Oversecured creditor not entitled to default rate of interest where its claim is paid in full in a ch 11 plan.
  • BK-CD-CA: "Absolute priority rule" survives the BAPCPA amendments and remains applicable in individual Chapter 11 cases.
  • BK-TX: Post-conf trustee lacks standing over §550 claims if plan limits assets & actions to those "as of effective date."
  • D-AZ certifies appeal to 9th: Can confirmed plan enjoin actions against non-debtor guarantor if there’s no plan default?
  • BK-SDNY: Borders’ motion to sell "de minimis" assets lacks several requisite procedural safeguards required by the Code.
  • BK-EDNY: Personal property lease can’t be reaffirmed, only assumed under Code Section 365(p).
  • BK-HI reviews 9th Cir. view that Rooker-Feldman doctrine "has even less vitality in bankruptcy than in district court."
  • BK-HI: "In pari delicto defense is inapplicable when a trustee brings an action under sections 544(b) and 548."
  • BK-HI:"2 year period [to bring §548 claim] is a substantive element of the trustee’s claim, not a statute of limitation."
  • BK-HI: Statute of limitations doesn’t bar UFTA action for fraudulent tsf older than 4 yrs but discoverable < 1 yr pre-BK.
  • BK-IN reviews 3 different ways Cts examine the "economic realities" of whether a lease is a disguised security interest.
  • BK-DEL: Claims under CERCLA, the New Jersey Spill Act, & the New Jersey Joint Tortfeasors Contribution Law are non-core.
  • BK-EDNY: Client settlement preferential but contingent fee not recoverable; firm took proceeds for value & in good faith.
  • BK-ARK: LLC Operating Agreement’s provision dissociating member that files BK unenforceable in contravention of BK Code.

Thanks for following!

© Steve Jakubowski 2011

Below are my twitter posts since my last post of May 1 of recent cases that I think you’ll find of interest.  RSS Feeds are also available:

  • BK-MD: SCOTUS Reminder–§506(c) doesn’t give administrative claimant an independent right to seek payment of its claim.
  • BK-VA: Notice of transferor’s fraudulent intent nec. element to fraudulent tsf claim ag. purchaser for valuable consid.
  • BK-DE:Landlord’s rt of 1st refusal in sale of liquor license not severable from lease, but LL has no rt to specific perf.
  • BK-DE: No admin. rent for landlord who changed the locks after BK filing & took possession & control over premises.
  • BK-NM: Lang. & structure of §§362 & 549 support view that §549(c) doesnt create an exception to automatic stay.
  • BK-TN: Counsel employed to defend the trustee individually may be paid from the estate like any other case professional.
  • BK-SDNY: Judge Drain explains at length why §546(e)’s safe harbor does not extend to the avoidance of an obligation.
  • SDNY: BK ref. w/d re 1) does Madoff Trustee have standing to pursue common law claims; 2) does SLUSA preempts his claims.
  • BK-CA reviews law re when debtor’s activities apart from sale/use of real prop. takes Debtor outside Code’s SARE rules.
  • 11th:Only "most compelling circumstances justify" post-confirm.amendment to proof of claim; plan has res judicata effect.
  • BK-SC reviews whether D&O ins. proceeds are estate property & allows payment of defense costs, on notice to the trustee.
  • DNJ affirms competing plan’s assumption of exec contracts: assumption right under §1123(b)(2) not limited to trustee/DIP.
  • 5th circuit reverses assumption of incurably defaulted executory contract that couldn’t close by original closing date.
  • BK-KS examines scope & boundaries of the implied covenant of good faith & fair dealing in a busted construction contract.
  • BK-OH: Few cases dealing w/ stay pending appeal of kB dismissal are distinguishable bec debtor can now pay its creditors.
  • BK-SDNY:Trustee lacks standing as "de facto" mgr to sue "de facto" mgr under fiction designed to protect 3d parties only.
  • BK-DE reviews circuit split re whether transfer that extends beyond § 547(e)’s 10 days is substantially contemporaneous.
  • BK-DE: Repayment of loan & release of guarantee isnt preferential to guarantor who had no liability at time of repayment.
  • D-NV: former managers can’t appeal grant of relief in involuntary case over objection of appointed ch 11 trustee.
  • 3d skirts deciding if BK & state law rendered anti-assignment provisions of insurer’s policies to Silica Trust a nullity.
  • 3d Cir: Objector to Silica Trust satisfied "Party in Interest" reqt; "insurance neutrality" of Comb. Eng. distinguished.
  • 3d Dissent: Party in Interest standing obtained by alleging fear of less projected profit from future business dealings.
  • D-NV: Notice of appeal doesn’t divest the Bankruptcy Court of jurisdiction to enter an order appointing a ch. 11 trustee.
  • BK-MA reviews circuit split re whether a secured creditor is entitled to the credit agreement’s default rate of interest.
  • 2d Cir: K&L interest in settlement agr.too remote to be considered party in interest in BK hearing to approve agreement.

Thanks for following!

© Steve Jakubowski 2011

Below are my twitter posts since my last post on April 17 of recent cases that I think you’ll find of interest.  RSS Feeds are also available:

  • BK NEB: dismissal of small business case not required simply bec 1st plan filed not confirmed within 45 days of filing.
  • BK-TX Houser J reviews 5th Cir principles of post-conf jurisdiction, incl. the case ag. pendant & ancillary jurisdiction.
  • BK-ND-IL-Squires, J. issues long opinion on indiv. ch 11 plan conf. reqts, incl. vitality of abs. pr. rule post-BAPCPA.
  • BK-IL Squires, J’s detailed companion opinion on confirmation requirements for ch.11 indiv.’s ch. 11 debtor corporation.
  • Dist. DC: Under FRCP 502 "intentional-waiver" language, PBGC waived work-product privilege by giving rpt. to Pilots Assn.
  • BK-WI: "no discharge" ch 13 debtor per §1328(f)(1) can "strip-off" wholly unsecured junior lien on principal residence.
  • ND-CA dismisses United Com Bk ch 7 trustee’s constr fraud tsf claims ag FDIC & sustains actual fraudulent intent claims.
  • DCT-PR: Ok to assume an unexpired lease per Ct. Order and then change position and reject lease at plan confirmation.
  • BK-D-CT: Liq Trustee’s Funding Agr. w/ 3d party for > 80% of litigation proceeds isn’t champterous or ag. public policy.
  • BK-ND-IL:No §105(a) inj. ag. condo assn from enforcing lien for fees that would have priority over Debtor’s lien on prop.
  • 10th Cir:§363(m) bars sale invalidation, but appeal not moot if remedy (like constr. trust) doesnt affect sale validity.
  • BK-DE: Indenture Trustee not entitled to full & immediate payment on account of Make-Whole Premium out of sale proceeds.
  • ED-MI: 523 cplt untimely under FRBP 4007(c) bec stip between debtor & trustee extending bar date doesnt apply to all crs.
  • BK-MD-FL: Vendor of routine mgmt svcs a good faith tsfee & "far cry" from bank or law firm reg. dealing w/ insolv issues.
  • BK-ID: plan payments of above-median-income ch 13 debtor w/ no proj dispos income need not continue for set time period.
  • D.DC.: Truism 1-"No opponent is ever as dedicated or persistent a foe as one that feels aggrieved by its former lawyers."
  • D.DC.: Truism 2-"Effect of agr. to reimburse attys for litig. re their fees will be to incentivize litig. re their fees."
  • BK-SDNY: KEIP and KERP plans approved in Borders as nec. to retain non-insiders and to incentivize mgmt to achieve goals.
  • SDNY: Refco sec. pltfs survive dismissal on "in pari delicto" & "Wagoner" grounds–"pltfs adeq pled adv. int. exception."
  • SDNY: BK CT has "related to" jd to enjoin non-debtor litig. if bk estate has indemn. or contrib. oblig. to losing party.
  • BK-HI: Rt. to recover fraudulent tsf from > 4 yrs pre-BK filing depends on when last creditor shd have discovered fraud.
  • BK-TX: If indenture requires demand on guarantor & no demand made when invol. pet. filed ag. guar., debt is contingent.
  • WD-LA approves BK Ct’s analysis & rejection of per se disqualif. of dbtr’s counsel whose retainer/fees paid by creditor.
  • BK-CA: Licensee can’t "lie in wait" but must litigate whether patents at issue were "Improvements" prior to confirmation.

Thanks for following!

© Steve Jakubowski 2011

More reported bankruptcy decisions now than any time ever.  30-70 decisions a day being reported compared to 10-25 in past years, with probably double or triple the number of commercial decisions coming down than before. 

Below are my twitter posts of recent cases (and a few other off-base topics) that I think you’ll find of interest, and possibly even helpful to one of your current cases. 

These are my latest posts since my last post on April 11.  RSS Feeds are also available:

  • Excellent post on Weil Bankruptcy Blog by Chris Linden on the enforceability (and unenforceability) of "bad boy" guaranties.
  • SDNY affirms restrictive view of "customer" as defined in the SIPA & denies claim based on unauthorized stock purchase.
  • 1st BAP:§1322(b)(2) not altered by BAPCPA’s "dbtr’s prin. res." or "incid. prop." defs. nor bar to bifurc. of sec. claim.
  • BK-TX: Sanctions imposed for suit brought post-ch 11 confirmation but Ct only allows 13% of fees under lodestar/Johnston.
  • SDNY certifies WARN act class of 200 employees fired from Steve & Barry’s 24 hrs before filing ch 11.
  • BK SDNY: Senior exec. benefit plans to which a general reservation of rights didn’t apply require compliance w/§1114.
  • BK SD IL: Ch 13 untimely claim denied even if cr. lacked notice of bk filing in sufficient time to file a timely claim.
  • BK-OR reviews cases where state law tort/damage claims are preempted by BK Code (wrongful invol. pet, failed to redact).
  • BK-Conn: Claims ag. Bear Stearns for defrauding debtor w/mgmt belong to creditors-not liq. trustee-under Waggoner rule.
  • BK-ED La.: Judicial lien recorded in preference pd. avoidable but $100K appeal bond deposited with Court registry isn’t.
  • BK NM: Avg. payment time & range of pmt. days in year before filing compared to pref pd puts pmts. in ord. course of bus.
  • BK SD OH: If co-signor’s name doesnt appear in body of mortgage, mortgage isn’t enforceable ag. her interest in property.
  • BK ND Tx: Perella not entitled to full success/transaction fee in TX Rangers BK bec it wasnt principal architect of sale.
  • BK SD FL: Rule 9011 safe harbor period is mandatory & failure to comply (even by a few hrs) is fatal to sanctions motion.
  • BK SDNY: Absolute assignment of rents in loan docs prohibited, but lender’s affirmative steps can make assignment work.
  • BK SD FL: "Funds locators," as assignee of ch 11 liq debtors, denied right to unclaimed distribs that revested w/debtors.
  • BK ND IL: Dentists ch 11’s filed improperly to delay collection on jdgmt; filing attys barely escape Rule 9011 sanctions.
  • SDNY: Adelphia Recov. Trust lacks standing to assert sub’s fraudulent tsf claims bec plan paid subs’ creditors in full.
  • BK-AL reviews split re whether "well-pleaded complaint" rule applies in "related to" cases or only "arising under" ones.
  • SDNY wont certify for appeal BK decision-applying Chateaugay-that env. cleanup oblig. wasn’t a dischargeable "claim".
  • BK-MD: Stay relief motion insuffic. to informally extend time for filing nondischarg. complaint; no eq. tolling.
  • CD Cal denies as moot appeal approving buyback of ins. policies under 363, saying PW, LLC case is supportive, but wrong.
  • BK-AZ: Analyzes Till, new value exception, sep. classif. of deficiency, & ext. term in permitting cram down of sec. cr.
  • BK-SDNY: Judge Gerber tackles a party’s rights to lost profits and lost royalties under NY law for breaches of contract.
  • DCT-AZ: Subrogation rts. enforceable in bk re right to vote on a plan. Right of cr. to vote under subord. agr. compared.
  • BK-SD-CA joins other courts & rejects idea that a recorded mortgage assignment is unnecessary via the MERS alternative.

Thanks for following!

© Steve Jakubowski 2011

I attached this New Yorker cartoon to my first blog post in October 2005.  Blogging, however, really doesn’t lend itself to incessant barking.  Tweeting does.  Back then, I wrote:

So how did this blog start? Well, many know of my personal obsession (spurred on by my legal learning role models Judge Diane Wood and All Star DH Attorney Dick (the "Mick"–and I’ve got the knees to prove it) Dannenberg) with staying current with developing case law.  During this past summer’s dog days, as the "blog-o-sphere" gradually enveloped me, I decided that the world actually needed another blog–one that kept people current on complex bankruptcy litigation case law developments.  So now, as cartoonist Alex Gregory aptly penned, instead of pointless, incessant barking, I’m blogging.

My obsession hasn’t changed, but now I’m tweeting instead of blogging, though hopefully not pointlessly so.

Here is a collection of my 31 tweets for the first 11 days of April.  RSS Feeds are also available.

  •  WD PA: Owens-Corning postpetition asbestos claims manifested post-plan conf. were discharged via publication notice.
  • Dist. DE denies Hartford SJ mot. to invoke fraud excep.: disp. facts re Yao fraud & if St. Fin Corp was Ponzi scheme.
  • Great NYT Magazine baseball article for those who love great pitching: "The Phillies’ Four Aces."
  • BK SD IL construes "self-settled or similar device" language of §548(e) in case of first impression nationally.
  • BK NEB: dismissal of small biz case not req’d just bec debtor’s 1st plan wasn’t confirmed within 45 days of its filing.
  • Read Willett obj. to "defective 9019 theory" & "weak underpinnings" of Lehman plan’s proposed substantive consolidation.
  • D-NV: Trustee cant compel turnover of estate prop.unless entity has property or proceeds at time turnover motion filed.
  • Innkeepers: Appaloosa has no standing as "creditor of a creditor." Stalking horse bid procedures ok per Lionel std.
  • New FASB Am. as of 6/15: A creditor’s determination of when loan modifications constitute "troubled debt restructurings."
  • 3d Cir: Kontrick/Bowles/Reed Elsevier confirm that Rule 8002(a) time limit for filing notice of appeal is jurisdictional.
  • SDNY: "Unfinished business doctrine" held to apply to hourly & contingency cases in post-dissolution Coudert adv. proc.
  • K&E advocates putting competing plans & discl. statements in Lehman on parallel tracks to allow concurrent consideration.
  • BK-MD: debtor/guar of loan lacks standing to sue lender for misconduct in underlying loan absent indep harm to guarantor.
  • DCT-HAW: Higher contract default interest rate, not post-jdgmt statutory rate, applies after entry of foreclosure jdgmt.
  • BK-WD-ARK asks whether notice to creditor’s prepetition collection atty alone is sufficient notice of claims bar date.
  • Hear 7th Cir arg. re whether secured cr. has statutory right to credit bid claim in debtor’s proposed plan asset sale.
  • Say congrat to Geoff Berman-new ABI Prez-but read Mark Berman’s 2 updates (w/Brighton) on 2d Lien Fin. & Intercr. Agrs.
  • IL DCT reviews 7th Circuit law, applied to the facts, on the nuances of the ord. course of bus. defense to a preference.
  • ED Mich affirms: stock buyout was a fraudulent tsf bec of lack of reas. equiv. value & too specul. intangible benefits.
  • BK SD Miss in 506(a) valuation hearing finds that cost approach is best bec sales comp. & income approach are unreliable.
  • BK MD: In pari delicto doesn’t bar ch 7 trustee’s action ag. parties engaging in postpetition fraud or other misconduct.
  • BK-NC values secured claim at property’s highest & best use, w/out discount for entrep. profit or cr.’s pfd. disposition.
  • BK-VA: former bd members/adv. defs. denied leave to sue current bd. members derivatively through ctcl. & 3d party action.
  • BK-NJ: Atty lien unenforceable ag. funds collected postpetition bec. atty didn’t perfect lien by filing suit prepetition.
  • Hear Lexis-Nexis Real Estate Podcast w/BuckleySandler attys: Robo-Signing Redux: Bankr. Cts. as the Next Battleground.
  • BK-ND Tx: Disgorgement required under §504 for undisclosed comp. sharing with contract attys. Disclosure reqts. outlined.
  • SD Tx reviews Bankruptcy Courts’ civil contempt power and their power to enjoin.
  • BK MD: Ct won’t follow maj. rule that lien stripping is contingent on debtor’s eligibility to receive a Ch. 13 discharge.
  • BK Utah refuses to reach "absurd" result under §546(e) that insulates any avoidable tsf. effectuated through a bank.
  • BK ND CA: Cr. comm. dissolves when case converts to ch.7, so post-conv. services by comm. counsel cant be paid by estate.
  • BK MA: Judge Hillman disagrees with Judge Markell re whether Absolute Priority Rule still applies to indiv. ch. 11 cases.

Thanks for following!

© Steve Jakubowski 2011

Too busy to blog, but still trying to tweet cases daily that I think you’ll find of interest (and perhaps even helpful to one of your current cases).  RSS Feeds are also available.  These are my tweets since my last blog post at the end of January:

  • 7th Cir supports claims traders and rejects idea that cure claims are disconnected from the underlying purchased claim. http://bit.ly/fTHilX
  • ND Cal: 502(b)(6) 15% statutory cap based on rent due in 1st 15% of the remaining time not on aggregate rent still due. http://bit.ly/dIGpB
  • Judge Gerber overrules all confirmation objections in a 35 page opinion confirming GM’s bankruptcy reorganization plan. http://bit.ly/eRnHFZ
  • Judge Gerber modifies blanket exculpatory provisions of GM reorganization plan to conform with 2d Circuit precedent. http://bit.ly/gmSgFn
  • Judge Gerber notes appropriateness of provision to pay ad hoc committee professional fees in a reorganization plan. http://bit.ly/ewGjVt
  • BK EDNY rejects cramdown of condo project’s secured lender & thoroughly reviews law re approp. cramdown rate in ch 11. http://bit.ly/gSSHGI
  • Excellent/funny Rich Epling article analyzing Judge Markell’s decision (on appeal now) in the Las Vegas Monorail Case. http://bit.ly/ig66BK
  • BK SDNY holds tort claims of future claimants not extinguished against successor purchaser in a bankruptcy 363 sale. http://bit.ly/e2C8X0
  • UT BK Chief Judge Thurman writes scholarly essay on "Jurisdiction and Rule-Based Time Limitations in Bankruptcy Cases." http://bit.ly/fMnb6t
  • DE BK Atty Ryan Murphy examines Rule 2019 amendments & potential impact on distressed debt investors & ch 11 generally. http://bit.ly/h68X5E
  • 7th Cir denies DIP lender unpaid fees under interim DIP order based on its anticipatory breach of DIP loan agreement. http://bit.ly/hLIMVG
  • SD TX Judge Bohm denies post-confirm trust standing bec Plan lacked "specific and unequivocal" language preserving claim. http://ow.ly/4dHRl
  • Wonder why Marilyn Monroe’s earliest photographs aren’t in print? They’ve been tied up in MD FL BK Ct. But not for long! http://ow.ly/4dIpU
  • VT BK Ct reviews UCC § 1-203’s "Bright-Line" & "Facts and Circumstance" Tests in deciding if agreement is a true lease. http://ow.ly/4dIyA
  • FT reports covenant-lite loans/refinancings are back to 2007 volumes, "though market may be cooling." http://on.ft.com/eKGgvq
  • MA BK Judge Feeney examines concept–and nunc pro tunc effect–of a trustee’s abandonment of the debtor’s property. http://bit.ly/hMQ77x
  • A very good man, Jim Millstein, reflects on a career, his legendary dad, and his next career move. http://bit.ly/gwn2Ca
  • Read 3 part series on Weil BK Blog examining recent cases analyzing the enforceability of make-whole provisions in BK. http://bit.ly/gGleLP
  • WD Mich BK Ct examines "illusive concept" of good faith under Sections 548(c) & 550(b)(1) in lengthy op. with 260 fn. http://ow.ly/4iga4
  • 7th Cir-Posner-holds causation burden in D&O duty of loyalty case lies with defendant to prove its absence, not w/Pltf. http://bit.ly/i0WuIP
  • BK ND IL relies on John Francis’ 1998 article "The Elusive Definitions of NOI & OAR" (1998) in RE valuation case. http://bit.ly/evT3cm
  • ND-OK reviews split of circuits re whether federal ct. has "related to" JD over claims assigned to litigation trustee. http://bit.ly/fAeAY4
  • Leif Clark reviews propriety of 3d party plan releases, related JD issues, & effect of silence to offending provisions. http://bit.ly/ea3gea
  • BK-EDNY holds § 365(d)(2)-not § 365(d)(4)-applies to timing of assp. of integrated franchise ag. and real prop. lease. http://bit.ly/fyiOl8
  • BK ND Ohio Judge Woods says ability to pay off creditors outside of BK provides "cause" for dismissal of a BK case. http://bit.ly/eA0Opk

Thanks for following!

© Steve Jakubowski 2011

Here are my tweets for this past week, though expanded into plain english.  RSS Feeds are also available for those wanting them individually organized:

  • A scholarly, wide-ranging opinion by the Hon. Leif Clark examining the intersection of principles of federalism, bankruptcy law, and the evolution of the law of personal exemptions ends narrowly, holding that a Texas debtor transplanted from Nevada can’t use either the Texas or Nevada homestead exemption laws to claim his Texas home exempt under Code section 522, but is instead limited to claiming the federal exemptions.
  • Robert Willens reviews a 12/23/10 IRS Private Letter Ruling regarding a consolidated group parent’s use of its NOLs post-chapter 11 reorganization.
  • Delaware bankruptcy court won’t impose an Illinois constructive trust on a ch 11 debtor’s receivables collections that included within them a nondebtor distributor’s sales markup.
  • Massachusetts bankruptcy court examines the law of debt recharacterization and equitable subordination and finds for the defendant lender on all counts after a bench trial.
  • Northern District of Illinois district court affirms an Illinois bankruptcy court’s temporary stay of collection actions against nondebtor guarantors found to be critical to success of the debtor’s reorganization efforts. .
  • A Massachusetts bankruptcy court reviews the split on whether a chapter 7 trustee’s motion to extend the time to object to discharge is limited to objections by the trustee alone or can be piggybacked by all creditors who subsequently want to object.
  • Bankruptcy counsel who quasi-robo-signed his debtor clients’ names electronically via ECF faces sanctions and state bar review.
  • A settlement agreement default that calls for entry of a judgment 63 times the defaulted amount is enforced by a ND IL district court as shocking, but consistent with terms of agreed-upon settlement agreement.

Thanks for reading!

© Steve Jakubowski 2011

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Here are my tweets for this past week, though expanded into plain english.  RSS Feeds are also available for those seeking instant gratification:

  • Here’s the 2011 update to my upcoming PLI presentation in Chicago on 4/27/2011 entitled "Treatment of IP Licenses in Bankruptcy":
  • Judge Bohm analyzes at length in Skyport Global whether 15 shareholder counts are derivative or direct under Delaware law.
  • Bankruptcy Court in West Virginia claims "related to" subject-matter jurisdiction over (i) an attorneys’ lien dispute claimed on the unrelated bankruptcy distributions payable to a creditor in a bankruptcy case and (ii) the underlying fee dispute between the attorney and the creditor.
  • Read my latest blog post: "Justice Scalia Won’t Ransom His Principles to Grant Justice Kagan a Unanimous First Opinion"
  • Travails of my client in Sunday’s Chicago Tribune: "Dead Meat" – How a Chicago meatpacker got $8MM & went bust 4 months later.
  • Illinois Bankruptcy Court holds that a creditor lacks standing to allege that the fiduciary duty owed to creditors of an insolvent company renders the company’s debts nondischargeable in the director’s individual chapter 7; that duty is owed to every–not a specific–creditor.
  • Does the Absolute Priority Rule apply to individuals in Chapter 11? Yes, writes Andrew Balbus, Esq. of the Balbus Law Firm in Danbury CT.
  • 7th Circuit holds that directors and officers of an insolvent Illinois company owe fiduciary duties to its creditors, but the Section 523(a)(4) fiduciary exception to discharge would not be extended to render the company’s debts nondischargeable in the D&O’s personal bankruptcy.

Thanks for reading!

© Steve Jakubowski 2011