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
Bankruptcy and Beach: the perfect combo?
We’re attending ABI’s Southeast Bankruptcy Workshop, where, as one fellow attorney joked on the elevator, we are “going to class.” In one of the sessions, we heard about a case decided by the Eleventh Circuit on “equitable mootness” (h/t to Lori Vaughan for the reference). Curious, we looked it
On Tuesday, we blogged about the Supreme Court’s decision in Husky International Electronics Inc. v. Daniel Lee Ritz. The decision focused on the phrase “actual fraud” in 11 U.S.C. § 523(a)(2)(A), which excepts from discharge any debts arising from money, property, services, or credit “to the extent obtained by . . .
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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
Every once in a while, we encounter a case that forces us to ponder the potential breadth of the bankruptcy discharge. In re Lombard Flats, LLC, a Northern District of California case from March 23, 2016, is such a case. In short, the court held that an alter ego claim against a Chapter 11
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
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
The use of third-party releases in Chapter 11 has become more permissible in recent years, and, because it is such a potent tool, the exact contours and limits of these releases have been hotly debated. We first blogged about third-party releases last year in our series on the confirmation-related recommendations in the ABI Commission Report
(If as many people who showed up to the 9th Circuit for Prop 8 showed up for the absolute priority rule, then the absolute priority rule might finally get the attention that it deserves from the U.S. Supreme Court!)
Yesterday, in Zachary v. California Bank & Trust, the Ninth Circuit overturned the Ninth Circuit