(Bankr. E.D. Ky. September 14, 2016)
(Bankr. E.D. Ky. Sept. 14, 2016)
(N.D. Ind. Sept. 14, 2016)
(Bankr. W.D. Ky. Sep. 16, 2016)
(Bankr. W.D. Ky. Sep. 16, 2016)
(Bankr. W.D. Ky. Sep. 12, 2016)
The bankruptcy court grants the motion to terminate the automatic stay. The creditor and the debtor entered into a sale contract prepetition for sale of the debtor’s real property. The debtor argued that the sale contract terminated prepetition, and the creditor argued that it should be permitted to pursue its claims on the contract in state court. The court finds that the debtor has no equity in the property and that it is not necessary to an effective reorganization. Thus, stay relief is appropriate. Opinion below.
Judge: Lloyd
Background
Insolvency Practitioners (IPs) commonly adopt time-based costing for the calculation of their remuneration, primarily on the basis that it ensures that the IP is only remunerated for the work actually undertaken and it ensures that remuneration reflects the simplicity or complexity of particular tasks. Three other ways in which remuneration are common calculated are ‘fixed fee’, ‘percentage’ (such as in respect of recoveries/realisations) and ‘contingency’ bases.
The bar for recovering assets that have been dubiously transferred out of an insolvent company may not be as high as one might think.
Background
On 14 June 2016, in its judgment delivered in Great Investments Ltd v Warner [2016] FCAFC 85, the Full Court of the Federal Court of Australia confirmed that a benefit transferred from a company without authority can only be retained by the recipient in very limited circumstances.
(Bankr. W.D. Ky. Sep. 1, 2016)
The bankruptcy court addresses the issue of whether the debtor’s prepetition claim for a surcharge before the Public Service Commission is property of the estate. The pre-petition receiver for the debtor argued that it was not, because the debtor abandoned its assets prepetition in the PSC action. The court disagrees, finding that legal title was not severed in the prepetition proceedings, and thus the bankruptcy trustee has control and authority over the surcharge claim. Opinion below.
Judge: Lloyd
(7th Cir. Aug. 23, 2016)