In a recent decision enforcing the discharge injunction under Section 1107(d)(1)(A) of the Bankruptcy Code, the Bankruptcy Court for the Western District of Pennsylvania blocked a creditor from asserting a claim against the debtor after confirmation of the plan. The case of In re Trustees of Conneaut Lake Park, Inc.), No. 14-11277, 2018 Bankr. LEXIS 1447 (JAD) (Bankr. W.D. Pa.
Who doesn’t love a good catch-all provision? In a world of infinite possibilities, attorneys often find themselves drafting language designed to encompass a plethora of contingencies. Are such efforts sometimes overkill? Perhaps. Nevertheless, given our imperfect ability to predict the future, such provisions are often necessary and appropriate.
Today we’ll begin with a two-part question: When do you suppose you could (i) hold a debtor’s property hostage without running afoul of the automatic stay and (ii) also collect on an administrative expense for postpetition rent for leased space used to store such property?
If you don’t already know the answers to the above questions, perhaps an overview of a recent decision from the Bankruptcy Court for the District of New Jersey will provide some insight.
Claims estimation can be an important tool for a chapter 11 debtor, particularly to pave the way for proposing a chapter 11 plan. How a bankruptcy court estimates wrongful death and personal injury tort claims (which have a jury trial right) is an interesting issue that was recently discussed by the Bankruptcy Court for the Central District of California in In re North American Health Care, Inc.
We all learned the first day of our Bankruptcy 101 class in law school that just because a debtor files for bankruptcy doesn’t mean those entities who have guaranteed the debtor’s obligations are off the hook. Doesn’t ring a bell? Well if you were sleeping during this part of the lecture, allow us to elaborate. Unless a guarantor has itself filed for bankruptcy, it will not be afforded protections under the Bankruptcy Code and creditors will not be stopped from looking to the guarantor for payment if the debtor fails to fulfill its obligation. But what if the debtor&
A fundamental tenet of chapter 11 bankruptcies is the absolute priority rule. Initially a judge-created doctrine, the absolute priority rule was partially codified in section 1129(b)(2)(B)(ii) of the Bankruptcy Code. Under section 1129, plans must be “fair and equitable” in order to be confirmed.
Claims disputes are “core proceedings” in bankruptcy cases that are subject to the general jurisdiction of bankruptcy courts, subject to exceptions for personal injury tort or wrongful death claims. Under 28 U.S.C.
While rockstars such as Iggy Pop and Nikki Sixx of Mötley Crüe were infamous for outlandish rider requests while on tour, perhaps nobody is more notorious for their demands of concert promoters than Van Halen.
Determining how to increase or preserve a debtor’s liquidity is crucial to analyzing its deleveraging options. Companies with significant labor liabilities need to explore whether attaining cost savings through rejection of their collective bargaining agreements (CBAs) is a viable alternative. The decision from the United States Court of Appeals for the Third Circuit in
It is often said that fools and their money are soon parted. In this regard, the former owners of a debtor who used the debtor’s funds to gamble at the Horseshoe Casino (the “Casino”), ultimately losing over $8 million dollars, could aptly be considered fools.