Below are my twitter posts since my last post of June 12 of 24 recent cases (and one very amusing video) that might be of interest to you. RSS Feeds are also available.

This "Risk Map" is from SocGen and highlights the "Black Swan and White Swan" risks to the economy.  It was posted today on the Business Insider website.

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  • 1st: Mass. req’t to record routine extension to prevent mortgage’s becoming obsolete tolled by §108(c) until stay ends.
  • 4th-noting difficulty of issue-says §550(b) is a defense to an avoidance action that the defendant has burden to prove.
  • 4th Cir sets objective & subjective standards applicable to knowledge and good faith prongs of §550 transferee defenses.
  • BK-AZ: "Indubitable equivalence": must show "no reasonable doubt" that creditor gets full value of what it bargained for.
  • D-NJ: "Strip-Offs" & "Strip Downs" under §506(d) reveiwed: ch 7 lien not void if junior to lien exceeding appraised value
  • D-DE: Appeal of claims estimation & confirm. orders & rejection of admin priority rts. equitably moot under 3d Cir stds.
  • D-MD: Absolute priority rule requires market valuation, so exclusivity shd be terminated for filing of competing plan.
  • D-IL: §362(d) allows BK Ct to retroactively annul the automatic stay to validate a technically voided foreclosure sale.
  • D-RI: Per §105 BK Ct can sua sponte appoint ch 11 trustee despite limits of §1104(a), but std of proof required unclear.
  • D-MA: Town’s demolition costs to clear unsafe bldg / nuisance from Debtor’s property are admin expenses per Midlantic.
  • BK-IL: Plan cant be funded w/rents after stay lifted & bank enforces rts to rents to extinguish debtor’s interest therein.
  • BK-WVA: Bk Ct asserts related-to jurisdiction over bank’s adversary ag. non-debtor guarantors bec. of subrogation rights
  • BK-VT: DIP may use cash collateral for atty fees if services benefited secured cr. under §506(c); decision here deferred
  • BK-NE:Best interest of creditors test-§1129(a)(7)-requires non-consenting crs. get interest before shareholders recover.
  • BK-NJ: Bad faith invol. petition 4 factors: contingent claim; inadeq. due diligence; 2 party dispute; litigation tactic.
  • BK-PA: Of "paramount importance" in cramdown property appraisal under SCOTUS Rash is "intended use approach to valuation"
  • BK-IL: Actual & constr. fraudulent tsf. suit for worthless ins. premiums paid in Lancelot ponzi scheme survives Twiqbal.
  • BK-PA: When 1 estate is indebted to another, an actual conflict prohibits dual representation of both debtors by counsel.
  • BK-IL reviews what "specific identification" of a cause of action is req’d in a plan to preserve the action postconfirm.
  • BK-IL strikes preference complaint under Twiqbal as not plausible bec. tsf. not on account of debtor’s antecedent debt.
  • BAP-9: Wells Fargo lacks standing to seek relief from stay lacking evidence it’s a person entitled to enforce its note.
  • BK-OH: "The court’s disquiet is the increasing amount of professional fees in a small, local business case" Size matters!
  • BK-SDNY: Abandonment doesn’t revest the debtor with the ability to relitigate issues settled or released by the trustee.
  • BAP-9: Mortgage servicer lacks standing to file claim unless it shows it’s an agent of one entitled to enforce the note.
  • BK-TX: Comm. RE debtor near foreclosure given 2d chance on tight leash shortly after BK-TX dismissal for bad faith filing.
  • 2d Cir: Madoff ancillary litigation – Banks generally owe no duty to protect one customer from another customer’s fraud.
  • 2d Cir: Madoff litigation-Exception to bank exculpation if cust has trust funds in fiduc acct w/clear evid of misapprop.
  • BK-DE: Insuff. record to decide if publication notice in WSJ was "reas. calculated" to give notice to consumer mortgagor.
  • D-NJ: Subseq. transferee per §550(a)(2) cant be the entity for whose benefit the initial transfer was made per §550(a)(1).
  • BK-OR: Stipulated Inventory Order essential to precluding 363 sale from including commingled assets the debtor didnt own.

Thanks for following!

© Steve Jakubowski 2011