The U.S. Court of Appeals for the Third Circuit recently held that the Bankruptcy Code does not preempt state law claims brought by non-debtors for damages related to the filing of an involuntary bankruptcy proceeding.
A copy of the opinion is available at: Link to Opinion.
On August 31, 2016, Hanjin Shipping Co. filed for bankruptcy protection in South Korea. Creditors “gave up the ship,” so to speak, and stopped the bleeding. Two days later, Hanjin filed in U.S. Bankruptcy Court for the District of New Jersey for Chapter 15, which provides a mechanism in the U.S. for resolving problems that arise in cross-border bankruptcies. Three out of four U.S. shippers reportedly have cargo on Hanjin vessels, so the repercussions of the bankruptcy filings are widespread.
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The ability of a secured creditor to credit bid its debt in connection with a sale of a debtor’s assets received a strong boost in a decision last month in the Chapter 11 case of Aeropostale from U.S. Bankruptcy Judge Sean Lane of the Southern District of New York.
Massachusetts bankruptcy courts have invalidated mortgages containing defects, including the failure of lenders to observe strict formalities in the execution of mortgage acknowledgements. See our prior post on this very topic at Lender Beware: The Tragic Consequences of Defective Mortgage Acknowledgements.
Bankruptcy Court Rules in Favor of University in Trustee's Suit to Recover Tuition Payments, Then Certifies Trustee's Appeal to First Circuit
HIGHLIGHTS:
Relying on the principle of international comity embodied in Chapter 15 of the United States Bankruptcy Code, the United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy Court”) recently vacated Rule B attachments previously granted by the United States District Court for the Eastern District of Louisiana (the “Louisiana District Court”) on the vessel M/V DAEBO TRADER (the “Vessel”) in In re DAEBO Int
As the Supreme Court recently reminded us in Bullard v. Blue Hills Bank, not all orders in bankruptcy cases are immediately appealable as a matter of right. Only those orders deemed sufficiently “final” may be appealed without leave under 28 U.S.C. § 158(a).
On August 23, 2016, Judge Sue L. Robinson of the Delaware District Court issued an Order denying an appellant’s motion for stay pending appeal. The decision was issued in a appeals arising from the Molycorp Bankruptcy (which is docketed, at case 15-11357 in the Delaware Bankruptcy Court). The appeals are docketed in the District Court as Case Numbers 16-286 and 16-288. A copy of the Opinion is available here.