The United States Court of Appeals for the Sixth Circuit recently issued two opinions examining standing issues in bankruptcy proceedings. This article examines how those cases clarify bankruptcy practice and procedures in the Sixth Circuit related to: (1) obtaining standing to pursue causes of action on behalf of the bankruptcy estate, and (2) the standing of potential defendants to oppose orders granting authority to pursue causes of action against them.

Increasingly, struggling businesses are opting to use Chapter 11 bankruptcy as a vehicle to sell substantially all of their assets. This is because Chapter 11 debtors can sell assets under uniquely buyer-friendly conditions. The last several years have revealed a clear trend in favor of quick liquidation by sale motion. As businesses continue to falter and fail due to the continuing financial crisis, it is likely that liquidations by Chapter 11 sale motion will continue to gain popularity.

Section 503(b)(9) of the Bankruptcy Code, which was added to the Code pursuant to the Bankruptcy Abuse Prevention and Consumer Protection Ace of 2005 ("BAPCPA"), creates an administrative claim in favor of pre-petition suppliers of goods under certain circumstances. From the time of its enactment, courts and practitioners have sought clarity regarding the correct interpretation of key elements of this section of the Code. This article examines the concept of the date of "receipt" of goods for purposes of §503(b)(9).

The chronology in many successful Chapter 11 cases is for the debtor to confirm its plan of reorganization, and then turn its attention to recovering preferential transfers of money or property made in the 90 days (or 1 year for insiders of the debtor) before the bankruptcy filing. This article explores the duty to provide information in the plan about possible preference actions, and the level of disclosure necessary to preserve them.

Can the owners of a company retain their equity interests in a Chapter 11 reorganization plan? The answer to this question is often critical in determining whether a Chapter 11 bankruptcy proceeding is a desirable option for the company's owners. If the company is unable to pay its creditors in full, then the absolute priority rule prohibits owners from retaining their interests under a reorganization plan unless the owners contribute new value to the business that is both substantial and essential to the company's reorganization efforts.

The Personal Insolvency Bill was signed into law by the President on 26 December 2012.

The Act provides for:

The Personal Insolvency Bill has completed its passage through the Dáil and the Seanad (the Irish Houses of Parliament) and will now be passed to the President for signing into law.

The new legislation has been described by the Minister for Justice as “the most radical and comprehensive reform of our insolvency and bankruptcy law and practice since the foundation of the State.”

It provides for:

An application by Quinn family members to have court-appointed receivers removed and their solicitors discharged on the basis of an alleged conflict of interest and partiality has been dismissed by the Commercial Court.

The Personal Insolvency Bill has completed its passage through the Dáil (lower house of the Oireachtas (the Irish Parliament)). The Bill is now moving through the Seanad (upper house of the Oireachtas), where its provisions are subject to debate and amendment. The Minister for Justice recently confirmed his intention that the Bill will become law by Christmas.

The Bill provides for: 

In a recent High Court case, a liquidator sought an order declaring that certain payments made by a company prior to its liquidation were a ‘fraudulent preference’ and invalid. The company had made payments to its overdrawn bank account which was personally guaranteed by one of its directors. It was alleged that the payments were made in order to reduce the company’s overdraft and therefore, the director’s own personal exposure under the guarantees.