In re Gelt Financial Corporation (Bankr. E.D. Pa.) Case no. 11-15827

In re East Coast Abatement Co. Inc. (Bankr. E.D. Va.) Case no. 11-73560

In re Summer View Sherman Oaks Apartments, LLC (Bankr. C.D. Cal.) Case no. 11-19800

In re MicroBlade, LLC (Bankr. W.D. Wis.) Case no. 11-14981

Postconfirmation liquidation and litigation trusts have become an important mechanism in a chapter 11 bankruptcy estate’s arsenal, allowing for the resolution of claims and interests without needlessly delaying confirmation in the interim. The specter of postconfirmation litigation may seem unremarkable. Section 1123(b)(3)(B) of the Bankruptcy Code states that a plan may provide for retention or enforcement by the reorganized debtor, the trustee, or a representative of the estate of any claim or interest belonging to the estate.

In re Piedmont Center Investments, LLC (Bankr. E.D. Wis.) Case no. 11-32453

The Bottom Line:

In re Culver Village, LLC (Bankr. C.D. Cal.) Case no. 11-46359

In a victory for secured creditors, the Seventh Circuit Court of Appeals recently held inRiver Road Hotel Partners, LLC v. Amalgamated Bank (In re River Road Hotel Partners, LLC), 2011 WL 2547615 (7th Cir. June 28, 2011), that a dissenting class of secured lenders cannot be deprived of the right to credit-bid its claims under a chapter 11 plan that proposes an auction sale of the lenders’ collateral free and clear of liens.

A significant consideration in a prospective chapter 11 debtor’s strategic prebankruptcy planning is the most favorable venue for the bankruptcy filing.