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Lender’s use of debtor’s valuation judicially estops lender from making value objection

2013-12-11

In re Investors Lending Group, LLC, 489 B.R. 307 (Bankr. S.D. Ga. 2013)

CASE SNAPSHOT

The secured lender was judicially estopped from objecting to the valuation of parcels of land that the debtor proposed to surrender to the secured creditor through its plan of reorganization because the debtor used the valuations provided by the secured lender’s appraiser.

FACTUAL BACKGROUND

Filed under:

USA, Georgia, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Collateral (finance), Foreclosure, Fair market value, Secured creditor

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Trustee fails to carry burden, court affirms pre-petition transfers to cover check-kiting losses not avoidable preference

2013-06-12

The Unsecured Creditors Comm. v. Community Bank(In re Stinson Petroleum Co., Inc.), Case No. 12-60234 (5th Cir., Jan. 7, 2013)

CASE SNAPSHOT

Filed under:

USA, Banking, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Legal burden of proof, Liquidation, Trustee, Fifth Circuit

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Secured blanket lien on inventory trumps reclamation rights

2012-10-15

In re Furrs Supermarkets, Inc., No. 11-01-10779 SA (Bankr. D.N.M. Aug. 15, 2012)

CASE SNAPSHOT

Filed under:

USA, New Mexico, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Unsecured debt, Secured creditor, Unsecured creditor

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‘Contingent claim’ not sufficient to establish right of setoff for lift-stay motion

2012-10-15

In re WL Homes LLC, Case No. 09-10571 (Bankr. D. Del. May 16, 2012)

CASE SNAPSHOT

The debtor’s insurer sought to lift the automatic stay in order to setoff $2.2 million in return premiums against potential defense costs that the insurer expected to incur related to certain insurance claims made against the debtor. The court denied the motion, finding that the insurer had not established a right to setoff under either state law or the Bankruptcy Code.

FACTUAL BACKGROUND

Filed under:

USA, Delaware, Insolvency & Restructuring, Insurance, Litigation, Reed Smith LLP, Title 11 of the US Code

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‘Unfinished business’ doctrine in law firm dissolutions is the subject of recent opposing decisions within the same district

2012-10-15

1) Dev. Specialists, Inc. v. Akin Gump Strauss Hauer & Feld LLP, Case No. 1:11-cv-05995 (S.D.N.Y. May 24, 2012)

CASE SNAPSHOT

Filed under:

USA, New York, Insolvency & Restructuring, Litigation, Reed Smith LLP, Limited liability partnership, Contingent fee

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Court finds indirect upstream owner exercised de facto control, warrants liability for WARN Act notice violation

2012-03-15

D’Amico, et al. v. Tweeter Opco, LLC and Schultze Asset Management, LLC (In re Tweeter Opco, LLC), 453 B.R. 534 (Bankr. D. Del. 2011)

CASE SNAPSHOT

Filed under:

USA, Delaware, Employment & Labor, Insolvency & Restructuring, Litigation, Reed Smith LLP, Debtor, Worker Adjustment and Retraining Notification Act 1988 (USA)

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‘Indubitable equivalence’ not proven in proposal to effect partial conveyance of property in full satisfaction of claim

2011-12-19

In re SUD Properties, Inc., Case No. 11-03833-8-RDD (Bankr. E.D.N.C. Aug. 23, 2011)

CASE SNAPSHOT

Filed under:

USA, Insolvency & Restructuring, Litigation, Real Estate, Reed Smith LLP, Debtor, Legal burden of proof

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Actual conflict of interest required to disqualify legal counsel under Section 327

2011-12-19

In re The Colonial BancGroup, Inc., 2011 WL 2792477 (Bankr. M.D. Ala. July 15, 2011)

CASE SNAPSHOT

Filed under:

USA, Employment & Labor, Insolvency & Restructuring, Litigation, Reed Smith LLP, Conflict of interest, Bankruptcy, Debtor, Interest

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