In recent years, constructively fraudulent transfer claims asserted in bankruptcy cases, especially those arising from LBOs and similar shareholder transactions, have hit a major road block.
The U.S. Bankruptcy Court for the District of Delaware recently issued an opinion that addresses, among other issues, the question of whether section 546(e) of the Bankruptcy Code preempts certain fraudulent transfer avoidance actions brought under state law. In re Physiotherapy Holdings Inc., No. 15-51238 (Bankr. D. Del. June 20, 2016).
On June 22, 2016, Judge Laurie Selber Silverstein of the Delaware Bankruptcy Court ruled on a motion to for class certification in the PacSun bankruptcy, Case No. 16-10882. In 2011, two plaintiffs filed actions under the California Labor Code Private Attorneys General Act (“PAGA”), alleging violations of California wage and hour laws. One of the Plaintiffs was granted class certification in February, 2016. After PacSun filed for bankruptcy, these plaintiffs moved for authority to file bankruptcy proofs of claim as representatives of the PAGA class for the class.
Earlier this month, Judge Sontchi dismissed an intercreditor adversary complaint filed in 2014 by the Energy Future Holdings (“EFH”) first-lien trustee against the second-lien noteholders. At issue in this decision, Delaware Trust Co. v. Computershare Trust Co.
(E.D. Ky. Bankr. June 24, 2016)
In this Chapter 13, the bankruptcy court rules on the objection to confirmation and finds that the creditor’s expert’s valuation of the debtor’s mobile home was more reliable than the valuations provided by the debtor’s experts. The creditor’s expert testimony was not hearsay, as it was reasonable for the expert to rely on information about the particular mobile home model provided by the manufacturer. The debtor’s experts failed to obtain knowledge of the particular model before determining their values. Opinion below.
Judge: Schaaf
A recent decision from the Bankruptcy Court for the District of Delaware further puts into doubt so-called bankruptcy blocking tactics. And the opinion from In re Intervention Energy Holdings, LLC, No. 16-11247, 2016 Bankr. LEXIS 2241 (Bankr. D. Del.
Alternatives to Bankruptcy from Bankruptcy Law Specialist Christy Myatt
The general notion behind receiverships is to preserve property pending the outcome of a case, or the foreclosure of real property or such other time as the Court deems a Receiver is not required.
The Receiver is usually an unrelated third party or attorney familiar with process.
I. State Court Receiverships
A. Purpose of Receivership
A Receiver plays an important part in three common situations:
Czyzewski v. Jevic Holding Corp., No. 15-649
A Chapter 11 bankruptcy is implemented through a plan that assigns allowed claims to classes of different priority levels. Unsecured claimants without priority are not entitled to any payment on their claims until all priority claims have been satisfied.
An involuntary petition under chapter 7 of the Bankruptcy Code filed against a Mississippi casino developer was dismissed for bad faith, even though the petitioning creditors met the statutory requirements for filing the involuntary case. In In re Diamondhead Casino Corporation, the U.S.
The Eleventh Circuit has made it clear: it will not back down from its decision in Crawford v. LVNV Funding, a decision it issued in 2014 and one which has been the subject of hot debate ever since. In Crawford, the Eleventh Circuit ruled that the filing of a proof of claim was an attempt to collect a debt and the filing of a proof of claim on time-barred debt violated the FDCPA. Crawford v. LVNV Funding, LLC, 758 F.3d 1254 (11th Cir. 2014). Since Crawford, the debate has raged on with several courts weighing in on the subject.
While you can probably think of other contenders, if any case “resembles the walking dead,” it is the recent case of In re Commonwealth Renewable Energy, Inc. In Commonwealth, the court was faced with a motion to dismiss the debtor’s chapter 11 case pursuant to