(E.D. Ky. Oct. 6, 2017)

The district court affirms the bankruptcy court’s order granting the trustee’s motion to dismiss the complaint. The trustee has the exclusive right to pursue claims asserted in the complaint. The appellant’s arguments that the lawsuits were distinct are rejected. If the appellant and trustee could both pursue the claims there would be a significant chance of a double recovery. Opinion below.

Judge: Wilhoit

The Facts

The Claimant purchased various rights to action from the Liquidator of a Company. The Deed of Assignment included the right to bring a claim for "alleged illegal dividends and/or transactions at an undervalue" arising out of payments to the Defendant, a director/shareholder, had received. It is important to note that the Deed of Assignment did not grant the right to bring a claim for Preference.

The Facts

(E.D. Ky. Oct. 3, 2017)

The district court affirms the bankruptcy court’s interpretation of a final cash collateral order, holding the bankruptcy court did not abuse its discretion in finding a carve-out for payment of professional fees included prepetition collateral of the lenders. The text of the order along with a review of the case record made clear that the parties had agreed the prepetition collateral was included. $2.4 million in fees were awarded. Opinion below.

Judge: Wilhoit

(Bankr. E.D. Ky. Oct. 4, 2017)

The bankruptcy court grants in part the debtor’s motion to avoid a judicial lien on two parcels of real property. Applying the formula in 11 U.S.C. § 522(f), the court determines that the debtor’s exemption is impaired with respect to one parcel but not the other. Opinion below.

Judge: Schaaf

Attorneys for Debtor: Michael B. Baker, James R. Westenhoefer

Attorneys for Creditor: DelCotto Law Group PLLC, Sara A. Johnston

(Bankr. W.D. Ky. Sep. 28, 2017)

The Dutch government has published a new draft of the Dutch Continuity of Enterprises Act II (the "WCO II") which seeks to introduce pre-insolvency measures in the Netherlands.

This case considers section 245 of the Insolvency Act 1986, namely the rules on avoidance of certain floating charges, and provides analysis of the application of s245 notwithstanding the Liquidation originated in the British Virgin Islands.

This article was first published in The Gazette, and the original article can be found online here.

The implementation of the Insolvency Rules 2016 has introduced a number of changes to the procedures in insolvency regimes.

The Sixth Circuit affirms the bankruptcy court’s interpretation of the creditor’s settlement agreement with the debtor. The agreement provided that the creditor released his claims against the city and the individual officers. The plan only provided for a small percentage to be paid on the claim, but stated claims against individual officers were not discharged by the plan. The creditor argued the settlement agreement should not be held to have released claims against the individual officers, but the court finds the plain language of the agreement makes clear such claims were released.