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    Sabine Lives On (and On): Bankruptcy Court Rejects Immediate Appeal to Second Circuit and Motion for Stay
    2016-07-04

    Editor’s Note: On June 16, 2016, The Bankruptcy Cave gave you our summary of the controversial Sabine decision. At that time, post-hearing motions were pending.

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Bryan Cave Leighton Paisner (Bryan Cave), Bankruptcy, Debtor, Interest, Gambling, Supreme Court of the United States, Second Circuit, United States bankruptcy court, US District Court for the Southern District of New York
    Authors:
    Craig K. Schuenemann
    Location:
    USA
    Firm:
    Bryan Cave Leighton Paisner (Bryan Cave)
    EFH Court Refuses to Entertain “Legal Fiction,” Dismisses First-Lien Trustee’s Turnover Action Against Second-Lien Noteholders to Recover Make-Whole Not Payable by Debtors
    2016-06-27

    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.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Bankruptcy, Debtor, Debt, Trustee
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    In re Jude
    2016-06-27

    (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

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Stoll Keenon Ogden PLLC, Debtor, United States bankruptcy court
    Authors:
    Matt Lindblom
    Location:
    USA
    Firm:
    Stoll Keenon Ogden PLLC
    Structural Limitations on Bankruptcy Filings—Blocking Tactics on the Block
    2016-06-27

    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.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Squire Patton Boggs
    Authors:
    Kate Thomas
    Location:
    USA
    Firm:
    Squire Patton Boggs
    Alternatives to Bankruptcy (Receivership)
    2016-06-28

    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:

    Filed under:
    USA, South Carolina, Capital Markets, Derivatives, Insolvency & Restructuring, Litigation, Nexsen Pruet, Debt, Foreclosure, Liquidation
    Authors:
    Christine L. Myatt
    Location:
    USA
    Firm:
    Nexsen Pruet
    Bankruptcy Code—Structured Dismissals
    2016-06-28

    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.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Mayer Brown, Bankruptcy
    Location:
    USA
    Firm:
    Mayer Brown
    Judge Tosses Bad Faith Involuntary Filing Primarily Seeking Management Change
    2016-06-28

    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.

    Filed under:
    USA, Delaware, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Bad faith, United States bankruptcy court, US District Court for District of Delaware
    Authors:
    Debora Hoehne
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    Three Point Shot - June 2016
    2016-06-22

    Showtime and Top Rank Slug It out over "Fight of the Century"

    Who said boxing was dead?

    Fight fans still bitter over the May 2015 Floyd Mayweather–Manny Pacquiao bout that was far more mega-bore than mega-brawl may at long last get the slugfest they have been waiting for. A couple of small caveats: Mayweather has ceded the spotlight to his home television network, Pacquiao to his promotion company, and the boxing ring to a courtroom.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Media & Entertainment, Proskauer Rose LLP, Conflict of interest, Class action
    Authors:
    Robert E. Freeman , Wayne D Katz , Joseph M. Leccese
    Location:
    USA
    Firm:
    Proskauer Rose LLP
    According to One Bankruptcy Court, the “Wrangle Over Executoriness May be a Tale ‘Full of Sound and Fury, Signifying Nothing’”
    2016-06-23

    On June 14, 2016, Judge Thuma of the Bankruptcy Court for the District of New Mexico issued a memorandum opinion holding that a debtor could reject a prepetition settlement agreement that was determined to be executory in nature.

    Filed under:
    USA, New Mexico, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Bankruptcy, Debtor, Memorandum opinion, United States bankruptcy court
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    Maryland Federal Court Allows Bank to Recover Allegedly Unauthorized Advances on Frozen HELOC
    2016-06-23

    Reversing a bankruptcy court order in favor of the debtor, the U.S. District Court for the District of Maryland recently held that a bank that had allowed amounts to be withdrawn from a home equity credit line after the HELOC had been frozen could still recover those amounts from the debtor.

    A copy of the opinion is available at:  Link to Opinion.

    Filed under:
    USA, District of Columbia, Family, Insolvency & Restructuring, Litigation, Maurice Wutscher LLP, Bankruptcy, Debtor, Breach of contract, Line of credit, United States bankruptcy court
    Location:
    USA
    Firm:
    Maurice Wutscher LLP

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