Missouri’s new receivership statute became effective on August 28, 2016. The new statute, called the Missouri Commercial Receivership Act (or “MCRA”) and codified at Chapter 515 of the Missouri Revised Statutes, provides a much more robust receivership remedy than prior law.
A corporate manager with control over construction funds, facing personal liability under the NY trust fund law to an unpaid sub and the homeowner for improper diversion of funds, cannot discharge that liability in a personal bankruptcy. Even when the original contracts were with a corporate entity. That is the lesson from the federal bankruptcy court in Manhattan.
The Ninth Circuit Court of Appeals recently issued a decision in Pacifica L 51, LLC v. New Investments, Inc. (In re New Investments, Inc.) (16 C.D.O.S. 11723, Nov. 4, 2016), which held that a secured creditor can collect default interest in connection with a cure under a chapter 11 plan, thereby rendering void the long-established rule under Great W. Bank & Tr. v.
On November 8, 2016, Judge Kevin Gross of the Delaware Bankruptcy Court issued an opinion (the “Opinion”) that affects nine different bankruptcy cases. The Opinion was issued in response to the request of Honeywell and Ford for access to asbestos claimants’ Rule 2019 exhibits. A copy of the Opinion is available here.
Copyrighting their names, “signing” with red thumbprints – we’ve seen some unusual court filings from unique individuals. But one person has apparently gone too far.
It can be incredibly frustrating for a lender when a borrower defaults on a loan and asserts frivolous defenses in response. A group of individuals who call themselves “sovereign citizens” or “sovereign freemen” often makes lawsuits quite tedious by refusing to recognize the authority of the courts or the government, or claiming that the loan is invalid because it is based on “vapor money.”
Hoku, a publicly-owned Delaware corporation, filed for bankruptcy with just $8 million in assets compared to a relatively staggering $1.3 billion in liabilities, much of which was funded debt. In light of this significant insolvency, Hoku’s chapter 7 trustee brought various breach of fiduciary claims against Hoku’s board of directors, including one akin to a claim for “deepening insolvency.” As the case of Hopkins v.
In Huff Energy Fund v. Gershen, C.A. No. 11116-VCS, the Delaware Court of Chancery dismissed a stockholder’s challenge to the board of director’s decision to dissolve the company following an asset sale. The Court ruled that the enhanced scrutiny standards of Revlon and Unocal do not supplant the business judgment rule in the context of a company’s decision to dissolve.
(Bankr. E.D. Ky. Nov. 1, 2016)
The bankruptcy court grants the debtor’s motion for summary judgment in this 11 U.S.C. § 523(a)(6) nondishargeability action. The plaintiff alleged the debtor willfully and maliciously injured the plaintiff, but failed to offer any evidence that would create a material factual dispute as to the debtor’s intent with respect to actions that gave rise to a prepetition judgment against the debtor. The court finds summary judgment in favor of the debtor is appropriate. Opinion below.
Judge: Wise
Burr & Forman lawyers won a significant victory in the Eleventh Circuit earlier this month. In the case In re: David A. Failla, — F.3d — (2016), the U.S. Court of Appeals for the Eleventh Circuit affirmed that a person who agrees to “surrender” his house in bankruptcy pursuant to 11 U.S.C. § 521(a)(2) may not oppose the creditor’s foreclosure action in state court. Our firm was one of the first to advance this argument, and many, but not all, of the bankruptcy judges in Florida agreed with our interpretation of surrender under the bankruptcy code and related case law.
In my May 26th post, I raised several questions that unsecured creditors in any Chapter 11 case should know the answers to and take action where appropriate. One of those questions is “Am I entitled to priority payment?” This is also important to answer in a Chapter 7 case.