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Texas Court Declines to Adopt Rule Holding Violation of Law Is Per Se Bad Faith in Fraudulent Transfer Actions

The Bottom Line

The District Court for the Northern District of Texas recently held in Segner v. Ruthven Oil & Gas, LLC, No. 3:12-CV-1318-B, 2018 WL 3155827 (N.D. Tex. June 28, 2018) that failure to comply with a disclosure law when documenting a transaction does not deprive a defendant in a fraudulent transfer action from asserting a good faith defense.

What Happened?

USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, US District Court for Northern District of Texas
Delaware Bankruptcy Court Finds Anti-Assignment Clauses in Debt Documents Enforceable in Claim Objection Fight with Postpetition Debt Purchaser

On June 20, 2018, Judge Kevin J. Carey of the United States Bankruptcy Court for the District of Delaware sustained an objection to a proof of claim filed by a postpetition debt purchaser premised on anti-assignment clauses contained in transferred promissory notes. In re Woodbridge Group of Companies, LLC, et al., No. 17-12560, at *14 (jointly administered) (Bankr. D. Del. Jun. 20, 2018).

USA, Delaware, Insolvency & Restructuring, Litigation, Paul, Weiss, Rifkind, Wharton & Garrison LLP
Bankruptcy Court Holds That Termination of Lease Does Not Equal Termination of Estate Property

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USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP
Delaware Bankruptcy Court Upholds Bankruptcy Code Pre-emption Invalidating Pre-Petition Claims as Part of Post-Petition KERP

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USA, Delaware, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP
The Ninth Circuit Vacates Bankruptcy Court’s Designation Order, Holding That Purchasing a Subset of Available Claims to Block a Plan, Absent An Ulterior Motive, Does Not Constitute Bad Faith

Summary

USA, Insolvency & Restructuring, Litigation, Paul, Weiss, Rifkind, Wharton & Garrison LLP, Ninth Circuit
Supreme Court Is Asked To Leave Its Mark On Trademark Licensee’s Rights in Bankruptcy

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USA, Insolvency & Restructuring, Litigation, Trademarks, Kramer Levin Naftalis & Frankel LLP, First Circuit
Connecticut Bankruptcy Court Holds That Trademark Licensee Does Not Automatically Lose the Right to Use Trademarks When Debtor-Licensor Rejects License, Siding with Seventh Circuit in Circuit Split

The United States Bankruptcy Court for the District of Connecticut recently examined a question at the heart of an existing circuit split regarding the consequences of trademark license rejection in bankruptcy: can a trademark licensee retain the use of a licensed trademark post-rejection? In re SIMA International, Inc., 2018 WL 2293705 (Bankr. D. Conn. May 17, 2018).

USA, Insolvency & Restructuring, Litigation, Trademarks, Paul, Weiss, Rifkind, Wharton & Garrison LLP
Ninth Circuit Affirms Creditors’ Ability to Buy Blocking Position of Unsecured Claims

The Bottom Line

USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP, Ninth Circuit
Trademark Licensee Retains Rights Post-Rejection

The Bottom Line

USA, Connecticut, Insolvency & Restructuring, Litigation, Trademarks, Kramer Levin Naftalis & Frankel LLP, United States bankruptcy court
When a Bankruptcy Plan Precludes Inquiry Into the Conduct of a Trustee

In yet another of the many cases against Residential Mortgage Backed Securities (RMBS) trustees for their alleged responsibility for losses suffered by investors, Judge Jesse Furman of the Southern District of New York precluded inquiry into the conduct of the trustee where a bankruptcy plan intervened. The plaintiffs were caught in a bind. Alleging misfeasance by the trustee prior to the commencement of the bankruptcy case would have been barred by the statute of limitations. Allegations of misfeasance subsequent to the commencement of the case were swept away by confirmation of the plan.

USA, Insolvency & Restructuring, Litigation, Kramer Levin Naftalis & Frankel LLP