(S.D. Ind. Feb. 17, 2017)
The district court affirms the bankruptcy court’s judgment in favor of the plaintiff trust. The bankruptcy court held that the trust could pierce the corporate veil and hold the debtor personally liable to the trust. The district court analyzes Indiana law on veil piercing and finds no error. Opinion below.
Judge: Young
Attorney for Debtor: Goering Law LLC, Wilmer E. Goering, II
Attorney for Plaintiff: Kroger Gardis & Regas LLP, David E. Wright
State and federal laws provide numerous protections to secured parties to preserve their interests in collateral. As secured parties well know, however, these protections become more and more limited when the collateral is pledged to multiple secured parties. Issues, like priority of interests and liens, become more prevalent when the collateral at issue falls in value and multiple secured parties are fighting to enforce their interests in order to satisfy their debts.
On February 8, 2017, the U.S. District Court for the Western District of Oklahoma dismissed the class action lawsuit brought by unsecured bondholders of Chesapeake Energy Corporation ("Chesapeake"), adopting the so-called narrow reading of Section 316(b) of the Trust Indenture Act of 1939 ("TIA").[1]
On February 15, 2017, Calrissian LP, a Burlingame, CA-based entity, filed a petition for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware (Case No. 17-10356). Calrissian is the parent holding company of Our Alchemy LLC (Case No. 16-11596) and Anderson Digital LLC (Case No. 16-11597), which filed petitions for relief under Chapter 7 in the Bankruptcy Court for the District of Delaware on July 1, 2016.
(S.D. Ind. Feb. 13, 2017)
State and federal laws provide numerous protections to secured parties to preserve their interests in collateral. As secured parties well know, however, these protections become more and more limited when the collateral is pledged to multiple secured parties. Issues, like priority of interests and liens, become more prevalent when the collateral at issue falls in value and multiple secured parties are fighting to enforce their interests in order to satisfy their debts.
Recently, in a split (2-1) decision, the United States Court of Appeals for the Second Circuit overturned the United States District Court for the Southern District of New York’s decision in Marblegate Asset Management, LLC v. Education Management Finance Corp., 111 F. Supp.3d 542 (S.D.N.Y. 2015) (“Marblegate II”). The Second Circuit held in Marblegate Asset Management, LLC v. Education Management Finance Corp., No. 15-2124, 2017 U.S. App. LEXIS 782 (2d Cir. Jan.
(Bankr. S.D. Ind. Feb. 10, 2017)
The bankruptcy court enters judgment in favor of the debtor on the trustee’s claims to avoid transfers of real property, but the court enters judgment in favor of the trustee on the claim under 11 U.S.C. § 727(a)(4) and denies the debtor a discharge. The court finds that the debtor made a false oath on his statement of financial affairs with reckless disregard for the truth. The debtor had transferred property prior to his divorce but claimed those transfers were made as a result of the divorce. Opinion below.
Judge: Moberly
Downtown Redevelopment Districts
On January 17, 2017, a divided (2-1) panel of the U.S. Court of Appeals for the Second Circuit (Second Circuit) reversed the decision of the District Court for the Southern District of New York (Southern District) in the Marblegate litigation1 (Marblegate) with respect to the interpretation of Section 316(b) of the Trust Indenture Act of 1939 (TIA).