On June 5th and 6th, 2016, Houston-based energy firm Hercules Offshore Inc. and its affiliated debtors (“Hercules” or “Debtors”) filed for Chapter 11 bankruptcy protection before the United States Bankruptcy Court for the District of Delaware.

In my May 26th post, I raised several questions that unsecured creditors in any Chapter 11 case should know the answers to and take action where appropriate.

In a 10-page decision dated June 6, 2016, Judge Carey of the Delaware Bankruptcy Court denied a motion to dismiss filed by a holder of a “Golden Share” of Intervention Energy Holdings, LLC (the “Debtor”). Judge Carey’s opinion is available here (the “Opinion”). A “Golden Share” is “A type of share that gives its shareholder veto power over changes to the company’s charter.

On May 20, 2016, Joao Bock Transaction Systems, LLC (“Debtor” or “Joao Bock”) filed for Chapter 7 bankruptcy relief before the United States Bankruptcy Court for the District of Delaware. Joao Bock has been described by some as a “patent troll” that engages in litigation over intellectual property disputes in order to extract favorable settlements.

In a brief, 4-page decision released May 26, 2016, Judge Gross of the Delaware Bankruptcy Court granted a motion for summary judgment, barring state court litigation in California on the grounds of res judicata. Judge Gross’ opinion is available here (the “Opinion”).

Since my April 15th blog post, Curtis James Jackson III, better known as rapper 50 Cent (“Jackson”), has made it past the disclosure statement approval phase of his bankruptcy case, and is running towards the plan confirmation finish line.

Yesterday, Iron Bridge Tools, Inc., a full-service design, development, and distribution company serving the consumer and professional hand-tool market, filed for Chapter 11 bankruptcy protection in Fort Lauderdale (Case No. 16-17505-RBR).

Introduction

Another North Dakota shale oil driller has filed for bankruptcy protection. On May 20, 2016, Intervention Energy Holdings LLC, and its affiliates (“Debtors”) sought chapter 11 protection from the United States Bankruptcy Court for the District of Delaware.

Other Williston Basin, ND shale oil victims include Emerald Oil Inc., and Halcón Resources Corp., which indicated that it plans to file for chapter 11 protection if it can get enough creditors to sign off on a deal that would let it restructure more than $3 billion in debt.

In Husky Int’l Electronics, Inc. v. Ritz, No. 15-145 (U.S. May 16, 2016), a 7-1 majority of the Supreme Court held that a fraudulent conveyance scheme comported with the requirements of “actual fraud” to create a potential new debt dischargeability exception pursuant to section 523(a)(2)(A) of the Bankruptcy Code.