Admittedly, lawyers love gotchas. But in the Chapter 11 bankruptcy case of Molycorp, Inc., a lender’s attorney, who apparently sought to pull a gotcha, ended-up being got. Specifically, Judge Sontchi ruled last week against a secured lender in the Molycorp case after that lender objected to $8+ million in administrative expenses incurred by the

Earlier this month, Judge Carey in Delaware weighed in on third-party releases in his opinion confirming the Chapter 11 bankruptcy plan for Abeinsa Holdings, Inc., et al. Back in February, we reviewed Judge Delano’s third-party release decision in HWA Properties, a Middle District of Florida case. In that case, the court refused to permit

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Talk about timing. Yesterday, barely a week after Dave blogged about Justice Thomas’ admission that he might enjoy and appreciate bankruptcy cases more than his colleagues, Justice Thomas was the sole dissenting justice in the Supreme Court’s 7-1 decision in Husky International Electronics, Inc. v. Daniel Lee Ritz. The stated

One person’s successful confirmation of a plan of reorganization is another person’s bad faith abuse of the rules. Last month in In re The Village at Lakeridge, LLC, the Ninth Circuit Court of Appeals waded into just such an area: the intersection of claims buying, insider status, and plan voting. Specifically, it addressed whether a non-insider creditor who purchases a claim from an insider is considered an insider for voting purposes. While it is well-settled that an insider’s vote is not counted for confirmation purposes under § 1129(a)(10), it was an open question, at least in the Ninth Circuit, whether insider status follows the insider claim’s in the hands of a non-insider purchaser. This is an important confirmation issue, especially in close cases where every vote matters.
Continue Reading Insider Status Travels With Claim? 9th Circuit Says No