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    Delayed recording: sometimes late is no better than never
    2014-09-23

    Collins v. JP Morgan Chase Bank, N.A. (In re Flannery), 513 B.R. 1 (Bankr. D. Mass. 2014) –

    Filed under:
    USA, Massachusetts, Insolvency & Restructuring, Litigation, Troutman Pepper
    Location:
    USA
    Firm:
    Troutman Pepper
    Credit bid: loan-to-own strikes out
    2014-09-12

    In re The Free Lance-Star Publ’g Co. of Fredericksburg, VA, 512 B.R. 798 (Bankr. E.D. Va. 2014) –

    After the debtors obtained court approval of bidding procedures to auction substantially all of their assets, a secured creditor sought a court determination that it had valid perfected liens on the assets, and the debtors sought to limit the secured creditor’s right to credit bid in the bankruptcy sales.

    Filed under:
    USA, Virginia, Insolvency & Restructuring, Litigation, Real Estate, Troutman Pepper, Bankruptcy, Debtor, Secured creditor
    Location:
    USA
    Firm:
    Troutman Pepper
    Credit bid (round 2): what does it take to show “cause”?
    2014-09-16

    In re Charles Street African Methodist Episcopal Church of Boston, 510 B.R. 453 (Bankr. D. Mass. 2014) –

    In connection with a proposed sale of real property, a chapter 11 debtor sought to prohibit the mortgagee from submitting a credit bid. It contended that there was “cause” based on its argument that the mortgagee’s claims were subject to a bona fide dispute.

    Filed under:
    USA, Massachusetts, Insolvency & Restructuring, Litigation, Real Estate, Troutman Pepper, Debtor
    Location:
    USA
    Firm:
    Troutman Pepper
    Improperly indexed mortgage: how far does your record review need to go to be safe?
    2014-09-05

    Albert v. Green Tree Servicing, LLC (In re El Erian), 512 B.R. 391 (Bankr. D. D.C. 2014) –

    A chapter 7 trustee sought to avoid the lien of a recorded deed of trust because (1) it contained both correct and incorrect parcel numbers and (2) it was improperly indexed. The issue turned on whether a bona fide purchaser would have had inquiry or constructive notice of the deed of trust.

    Filed under:
    USA, District of Columbia, Insolvency & Restructuring, Litigation, Private Client & Offshore Services, Real Estate, Troutman Pepper, Constructive notice
    Location:
    USA
    Firm:
    Troutman Pepper
    Abandonment: when property drops out of the bankruptcy estate
    2014-09-09

    In a case that was converted from a chapter 11 reorganization to a chapter 7 liquidation, the debtor sought an order directing the trustee to abandon certain real estate, arguing that there was no equity for the bankruptcy estate. A lender had already obtained relief from the automatic stay permitting it to foreclose on the property, and the debtor wanted to do a short sale with the consent of the lender. The chapter 7 trustee opposed the motion.

    Filed under:
    USA, Insolvency & Restructuring, Real Estate, Troutman Pepper, Debtor
    Location:
    USA
    Firm:
    Troutman Pepper
    LLC managers beware: get involved with member distributions by an insolvent LLC and you may be personally liable
    2014-09-02

    Vieira v. Harris (In re JK Harris & Co., LLC), 512 B.R. 562 (Bankr. D. S.C. 2012) –

    A chapter 7 trustee sued a manager of three limited liability company (LLC) debtors for breach of fiduciary duty and to hold the manager personally liable for distributions made to members, including himself.

    Filed under:
    USA, South Carolina, Insolvency & Restructuring, Litigation, Troutman Pepper, Fiduciary, Limited liability company, Gross negligence
    Location:
    USA
    Firm:
    Troutman Pepper
    Lease termination: do you really mean it?
    2014-08-26

    In re 2408 W. Kennedy, LLC, 512 B.R. 708 (Bankr. M.D. Fla. 2014) –

    A commercial landlord sought relief from the automatic stay so that it could complete prepetition eviction proceedings against the debtor. The debtor objected, arguing that it had a right to assume the lease. The case turned on whether the landlord effectively terminated the lease prepetition.

    Filed under:
    USA, Florida, Insolvency & Restructuring, Litigation, Real Estate, Troutman Pepper, Debtor
    Location:
    USA
    Firm:
    Troutman Pepper
    Fraudulent transfer: a case where strong arm powers were “an inch too short”
    2014-08-29

    Casey v. Rotenberg (In re Kenny G Enterprises, LLC), 512 B.R. 628 (C.D. Cal. 2014) –

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Real Estate, Troutman Pepper, Title 11 of the US Code
    Location:
    USA
    Firm:
    Troutman Pepper
    Mortgage enforcement: dot those “I”s and cross those “t”s – or else
    2014-08-19

    In re Demers, 511 B.R. 233 (Bankr. D. R.I. 2014) –

    A chapter 13 debtor objected to the portion of a mortgagee’s claim consisting of expenses related to foreclosure of its mortgage. She argued that since the mortgagee failed to comply with notice requirements under the mortgage, the foreclosure expenses were not valid.

    Filed under:
    USA, Banking, Insolvency & Restructuring, Litigation, Real Estate, Troutman Pepper, Debtor, Mortgage loan, Foreclosure, Default (finance)
    Location:
    USA
    Firm:
    Troutman Pepper
    Post-petition interest: not very predictable
    2014-08-22

    Prudential Ins. Co. of Am. v. SW Boston Hotel Venture, LLC (In re SW Boston Hotel Venture, LLC), 748 F.3d. 393 (1st Cir. 2014) –

    A senior mortgagee battled the debtor and a junior mortgagee over its entitlement to post-petition interest: If and when did it become oversecured and thus entitled to interest? Was it entitled to interest at the default rate? Should the interest be compounded?

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Troutman Pepper, Debtor, Interest
    Location:
    USA
    Firm:
    Troutman Pepper

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