Last month, the Fifth Circuit Court of Appeals ruled that a secured creditor’s claim survives bankruptcy where the secured creditor received notice of the case and was found to have not actively participated in it. Acceptance Loan Co. v. S. White Transp., Inc. (In re S. White Transp., Inc.), 2013 U.S. App. LEXIS 16181 (5th Cir. Aug. 5, 2013).
In our previous post, we provided background on receiverships and detailed specific reforms that could provide much-needed updates to the process. Today we’re continuing to look at those possible reforms.
Conduct of case and notice to creditors
Quin v. County of Kauai Dep't. of Transp., 2013 WL 3814916 (9th Cir. 2013)
The Bottom Line:
A few weeks ago in In re S. White Transportation, the U.S. Court of Appeals for the Fifth Circuit permitted a secured creditor that had indisputably received notice of the debtor’s chapter 11 case, but took no steps to protect its interests until after the confirmation of the debtor’s plan, to continue to assert a lien against the debtor’s property post-confirmation.
On August 15, 2013, in Zucker v.
I have blogged several times about the difficulties of preserving non-qualified plan benefits, particularly when the plan sponsor goes bankrupt. At the time of a bankruptcy, the company's non-qualified plan becomes nothing more than an unfunded promise to pay benefits and participants usually have to get in line with the company's other creditors. The recent decision in Tate v. General Motors LLC (56 EBC 1363, 6th Cir.
While the American economy continues to grow at a tepid pace, the filing rate for both personal and business bankruptcies has slowed dramatically. As banks have cleared many, but certainly not all, of their problem loans and have curtailed lending activity, the main driver of small- and medium-business bankruptcies has slowed. However, like death and taxes, bankruptcy is not going to go away. The retail sector appears to be primed for the next wave in bankruptcy filings, and that means that vendors, suppliers, and other creditors should be prepared.
CASE RESULTS DEPEND UPON A VARIETY OF FACTORS UNIQUE TO EACH CASE AND DO NOT GUARANTEE OR PREDICT A SIMILAR RESULT IN ANY FUTURE CASE