The U.S. Court of Appeals for the Ninth Circuit recently held that the Federal Foreclosure Bar’s prohibition on nonconsensual foreclosure of assets of the Federal Housing Finance Agency preempted Nevada’s superpriority lien provision and invalidated a homeowners association foreclosure sale that purported to extinguish Freddie Mac’s interest in the property.
A copy of the opinion is available at: Link to Opinion.
(Bankr. W.D. Ky. Sep. 1, 2017)
The bankruptcy court finds in favor of the debtor in this nondischargeability action. The creditor’s claim was based on missing restaurant equipment following the termination of a real property lease to the debtor. The court finds the creditor failed to present evidence establishing that the debtor was responsible for the loss. The elements of §§ 523(a)(2), (4), and (6) were not satisfied. Opinion below.
Judge: Fulton
Attorneys for Debtor: Farmer & Wright, PLLC, Todd A. Farmer
Attorney for Creditor: Steve Vidmer
(Bankr. E.D. Ky. Aug. 28, 2017)
The bankruptcy court denies confirmation of the debtors’ proposed Chapter 12 plan. The court first determines that the debtors’ timber operations constitute a “farming operation” under § 101(21). Those operations are ongoing rather than a single cut of all timber at one time. The debtors are eligible to proceed under Chapter 12. However, the debtors failed to provide sufficient evidence that the proposed plan was feasible. Opinion below.
Judge: Wise
Attorney for Debtors: Michael L. Baker
The long-running litigation spawned by the leveraged buyout of Tribune Company, which closed in December 2007, and the subsequent bankruptcy case commenced on December 8, 2008[1] has challenged the maxim that “there’s nothing new under the sun” even for this writer with four decades of bankruptcy practice behind him.
Two sections of the Bankruptcy Code addressing leases sometimes work in tandem with each other, but some courts are creating a conflict.
Section 363 gives bankruptcy courts the power to approve the sale of the assets of a bankruptcy debtor, free and clear of any liens, claims or interests in the property, under certain conditions.
Section 365 gives bankruptcy courts the power to approve the termination of unexpired leases of real estate or to approve their assumption and assignment, also under certain conditions.
On 5 September 2017, the Dutch legislator published an amended bill on pre-insolvency proceedings in the Netherlands1 for consultation purposes.2 The Bill contains a proposal for an amendment to the Dutch Bankruptcy Act (Faillissementswet) which enables a company in financial difficulties to propose a composition outside insolvency proceedings to its creditors and shareholders, to restructure problematic debts.
The Bottom Line
Some think that when you file for bankruptcy, you sell your proverbial soul to the devil.
While this view isn’t necessarily true, it does imply that bankruptcy is not an easy choice. It could mean short term relief, but it could also affect your self-image, reputation, and even future credit negatively. The experts at Allstate Law Center add that before making this choice, you should consider all factors and options.
The Australian mining supplier Emeco Holdings Limited ("Emeco") originally filed Chapter 15 proceedings on 11 February 2016. Emeco was looking to complete a significant restructure involving a three way merger and refinancing and debt for equity swaps of around A$680 million. Following creditor approval of the scheme of arrangement, Emeco surfaced from the Chapter 15 proceedings on 7 June 2017.
In March of this year, consumer electronics and home appliance retailer Gregg Appliances, Inc., better known as H.H. Gregg, filed for Chapter 11 bankruptcy in Indianapolis, Indiana. H.H. Gregg, which took over many of the retail spaces previously occupied by Circuit City, is one of many big-box retailers that have sought Chapter 11 bankruptcy over the past several years. Like Circuit City, H.H. Gregg was unsuccessful in reorganizing in bankruptcy and is now seeking to recover payments made to vendors and other creditors within 90 days prior to the bankruptcy filing.