Below are my twitter posts since my last post of June 18 of 52 recent bankruptcy cases and commentary and 10 retweets, news items, and entertaining videos that might be of interest to you. RSS Feeds are also available.

The chart is from the June 18 posting from Business Insider’s article entitled About that Gigantic Fall in Junk Bond ETF’s, which offers the following explanation to that huge price drop:

One possibility put forth: ETFs like JNK are much more liquid than actual junk bonds, and so this huge selling actually represents junk bond investors selling the ETFs by proxy, because they can’t get a decent bid on what they’re holding.  If you buy the idea that credit markets are somehow "smarter" than other markets, and you believe that real money credit holders are rushing for the doors with these ETF shorts, watch out.

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Bankruptcy Cases

  • BK-IL: Bank req’d under Ill. Mortgage Act to release mortgage after loan payoff despite risk of future BK adversary lit.
  • BK-MS: Plan wiped out lien of creditor who slept on rights & didn’t object to plan despite requisite due process notice.
  • BK-MS: §1127(b) is the sole means for modifying reorganization plan after confirmation; BK rules 9023/9024 inapplicable.
  • D-IL: CIT loses appeal seeking priority over hog sellers who got trust protection under the Packers & Stockyard Act.
  • BK-KY: Debtor received reas. equiv. value from fees paid to lawyers though advice benefitted individuals besides debtor.
  • BK-TX: Promises of future performance can be material misrepsentations for fraud purposes if made w/intent not to perform.
  • SD-FL: No §507(a)(4) priority for attys’ fees incurred while litigating unpaid wage claims under Fair Labor Standards Act.
  • BK-DE: Recoupment applies where parties intend to apply credits against diff. product purchases in long-term bus. rel.
  • BK-DE: Sr. exec. "top hat" plans must be unfunded, so no constructive trust can be imposed to protect plan participants.
  • BK-AZ: SCOTUS requires showing of irreparable injury for stay pending appeal be "the more probable or likely outcome."
  • BK-NV: Cts consider trustee’s competency & experience when weighing the degree of deference to afford trustee’s judgment.
  • BK-FL: Fact of Ponzi scheme-w/o tying transfers to furtherance of scheme-wont implicate presumption of fraudulent intent.
  • BK-CA: Defense of Marriage Act unconstitutionally denies equal prot. to gay couples if they cant file joint BK petition.
  • Good review of opinion by 20 BK-CA judges denying UST motion to dismiss joint BK filing by same-sex couple as unconstit.
  • Extended Stay Trustee’s 179 pg complaint vs. Blackstone et al for breach of fiduciary duty & illegal div in June 07 LBO.
  • Extended Stay Trustee’s 107 pg complaint vs. sellers, buyer, lenders & advisors for avoidable transfers in June 07 LBO.
  • BK-CA: Claim obj. under §502(d), w/out seeking recovery of underlying transfer, doesn’t violate Lehman’s automatic stay.
  • BK-FL cites to "bird in the hand is worth two in the bush" as authority to approve Ch 13 dbtr’s motion for early payoff.
  • BK-CA: Section 502(d) can be purely defensive & doesn’t require initiation of avoidance adversary to recover transfer.
  • BK-OH: Well cited op. denies dismissal, transfer, abstention & remand of avoidance actions ag. insiders & affiliates.
  • D-CA rejects Clear Channel’s holding that §363(m) stay doesnt apply to "free and clear" aspects of a sale under §363(f).
  • D-CA rejects Clear Channel’s holding that the §363(m) stay allows for review of lien stripping under §363(f).
  • ReedSmith: SD-IL-‘All Value’ Must be Considered in Determining ‘Reasonably Equivalent Value’ in Fraudulent Transfer Case.
  • ReedSmith: 3d – DCF is a ‘Commercially Reasonable Determinant of Value’ re Repurchase Agreement Acceleration under §562.
  • ReedSmith: TX – Court Grants Parent Cos. Standing To Sue Lender as 3d-Party Beneficiaries of Loan Commitment Agreements.
  • ReedSmith: BK-NY Vacates Foreclosure Sale Finding Bank Violated Stay by Proceeding w/Sale Where Debtor Guaranteed Loan. 
  • Weil Bankruptcy Blog asks: What Happens When a Debtor Seeks to Reject a Right of First Refusal?
  • 7th Cir.: Collateral-Order Doctrine Used in a Case of 1st Impression; Ct. Affirms Broad Equitable Powers of a Receiver.
  • Blakemore & Martin – BK Strategist: Using 552(a) to Invalidate a Bank’s Security Interest in Proceeds of an FCC License.
  • 3d Cir: § 1112(b) creates no statutory bar to considering a motion to dismiss the BK case during the exclusivity period.
  • 5th-Minority LLC member’s tsf. of real prop to self is void ab initio & not voidable subject to intervening rts. of BFP.
  • EDNY: FTC action to enjoin alleged fraud in marketing medical discount plans is exempted from stay under § 362(b)(4).
  • BK-PA: PhillyNews defamation action case excluded under APA & enjoined under Plan release for lack of willful misconduc.
  • BK-MT cites Colliers in reviewing & applying BAPCPA’s change in §1112(b)’s stds for conversion or dismissal "for cause."
  • BK-TX: Debtor isnt a "single asset real estate" because income is generated from interest on notes, not property itself.
  • 5th: Unopposed plan release & exculp. provisions essential to reorg, w/ parties rep’d by good attys, bars fraud claims.
  • 3d: MPPAA withdrawal liability can be apportioned between pre- and post-petition periods, with the latter an admin. exp.
  • BK-SDNY: §548(a)(1)(A) claim stated under "Ponzi scheme presumption" for Dreier’s payments on forged client prom. notes.
  • BK-NY: Dreier Ponzi payments not constr. fraud. tsf under NY law or BK Code, except for net winnings over principal inv.
  • BK-SDNY: Under NY fraudulent transfer law, "good faith" isn’t an issue where the tsf satisfied a valid antecedent debt.
  • BK-NY: In Dreier avoidance action involving commingled accounts, Def. has burden to prove debtor held bare legal title.
  • BK-NY: Dreier Ponzi payments not constr fraudulent tsf under NY law or BK Code to "net losers" receiving < principal inv.
  • BK-SDNY: To establish subseq. transferee liab. per §550, complaint must allege "the who, when, & how much" of the tsfs.
  • BK-NY: Under §550, complaint must allege "direct, ascertainable & quantifiable" benefit commensurate w/prop. transfered.
  • 11th-Impaired creditor need not object at confirmation to preserve on appeal whether absolute priority rule was violated
  • SD-AL: Indiv. ch 11 plan violates absolute priority rule by contributing no new value and retaining title to property.
  • BK-KS: Mechanic’s lien fails if contractor’s bill isnt reasonably itemized to know whether lienable items were furnished.
  • D-TN: Each estate creditor is 3d party benefic. of tolling agr. between creditors comm & accts. accused of malpractice.
  • SDNY: Advantage in BK to lender of including a penalty/premium upon acceleration clause in a promissory note discussed.
  • B-DE: Twiqbal increases pleading stds for preference cmplts., requiring identity of transferor & stated antecedent debt.

Topics of General Interest

  • Retweet – Bryan A. Garner: The Totenburg piece on my SCOTUS interviews: . Is really an "obscure webiste"? Would that it weren’t!
  • Retweet – Adam Liptak: Very smart Justin Driver piece on how Tribe and Sunstein influenced Obama’s views on the court.
  • Jarring story about China’s "ghost cities." Skyscrapers, schools, & residential developments with nary a soul in sight.
  • Stranger than Fiction-15 SCOTUS ops. to go & lifelong Yankee fan, Sotomayor, J, dons a CUBS jersey to throw first pitch!
  • Not a Biblical or Roman holiday, nor one celebrated by the framers in 1787. Ever wonder who invented Father’s Day?
  • The irony of the world’s being slowly irradiated from Japanese soil using US technology is frighteningly apparent.

Thanks for following!

© Steve Jakubowski 2011