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    Terminating a Distressed Tenant’s Lease?
    2016-04-13

    Landlords contemplating terminating a lease with a distressed tenant in advance of a possible tenant bankruptcy will want to consider carefully a recent decision from the Seventh Circuit. The decision, In re Great Lakes Quick Lube LP, reversed and remanded a bankruptcy court decision in favor of a landlord.

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Real Estate, Nutter McClennen & Fish LLP, Bankruptcy, Landlord, Leasehold estate, Remand (court procedure), United States bankruptcy court, Seventh Circuit
    Authors:
    John G. Loughnane
    Location:
    USA
    Firm:
    Nutter McClennen & Fish LLP
    “Don’t they have e-filing where you come from?” Tech-challenged lawyer dodges suspension
    2016-04-14

    My spouse and I visited Chicago years ago, and confusedly started driving the wrong way down a one-way street.  We were promptly pulled over by one of the Windy City’s finest.  I gave him my best smile, and said, “Sorry, officer, we’re from out of town.”  He grunted, “Don’t they have one-way streets where you come from?”  But he didn’t give us a ticket.  A recent disciplinary opinion out of Oklahoma, involving a tech-challenged bankruptcy lawyer, brings the story to mind.

    E-filing woes bring bankruptcy court discipline

    Filed under:
    USA, Oklahoma, Insolvency & Restructuring, Legal Practice, Litigation, Thompson Hine LLP, United States bankruptcy court
    Authors:
    Karen E. Rubin
    Location:
    USA
    Firm:
    Thompson Hine LLP
    Bankruptcy Court Chips Away at Bankruptcy Remoteness of Special Purpose Vehicles
    2016-04-18

    A Chicago bankruptcy court declined to dismiss the Chapter 11 case of a “bankruptcy remote” limited liability company even though the debtor failed to obtain the unanimous consent of its members as required by its operating agreement. See In re Lake Mich. Beach Pottawattamie Resort, LLC, Case No. 15bk42427, 2016 Bankr. LEXIS 1107 (Bankr. N.D. Ill. April 5, 2016).

    Filed under:
    USA, Illinois, Insolvency & Restructuring, Litigation, McGuireWoods LLP, Bankruptcy, Debtor, Fiduciary, Limited liability company, United States bankruptcy court
    Authors:
    Richard J. Mason PC , Patricia K. Smoots
    Location:
    USA
    Firm:
    McGuireWoods LLP
    Bush v. United States (In re Bush)
    2016-04-11

    (Bankr. S.D. Ind. Apr. 8, 2016)

    The bankruptcy court addresses whether certain tax penalty claims are dischargeable. The court finds certain penalties are dischargeable because they arose out of tax returns filed outside the three-year window provided in 11 U.S.C. § 523(a)(7). However, other penalties were not dischargeable because they arose out of a tax return filed within the three-year window. Opinion below.

    Judge: Carr

    Attorney for Debtors: Camden & Meridew, P.C., Julie A. Camden

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Tax, Stoll Keenon Ogden PLLC, United States bankruptcy court
    Authors:
    Matt Lindblom
    Location:
    USA
    Firm:
    Stoll Keenon Ogden PLLC
    A Twist on Excusable Neglect
    2016-04-13

    Practitioners generally identify “excusable neglect” as the standard that bankruptcy courts apply in determining whether to allow a creditor’s untimely proof of claim. A creditor who lets the bar date pass finds itself in the undesirable position of having to persuade the bankruptcy court that its neglect to file a timely proof of claim was excusable.

    Filed under:
    USA, Kansas, Insolvency & Restructuring, Litigation, Real Estate, Weil Gotshal & Manges LLP, Debtor, United States bankruptcy court
    Authors:
    Moshe Fink
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    Siragusa v. Collazo (In re Collazo)
    2016-04-07

    (7th Cir. Apr. 5, 2016)

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Stoll Keenon Ogden PLLC, United States bankruptcy court, Seventh Circuit
    Authors:
    Matt Lindblom
    Location:
    USA
    Firm:
    Stoll Keenon Ogden PLLC
    Florida Bankruptcy Court Finds That It Should Abstain From Involuntary Cases Against Florida Real Estate Developer (No, Not THAT Florida Real Estate Developer)
    2016-04-07

    When is a claim contingent? When is a claim subject to a bona fide dispute and who has the burden of proof? When is a claim against a person? When is a claim too small to count? When is an alleged debtor generally not paying his debts as they come due? Are we there yet?

    Filed under:
    USA, Florida, Insolvency & Restructuring, Litigation, Real Estate, Weil Gotshal & Manges LLP, Debtor, Legal burden of proof, Good faith, United States bankruptcy court
    Authors:
    Brenda L. Funk
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    Indiana Department of Workforce Development v. Coulter (In re Coulter)
    2016-04-11

    (Bankr. S.D. Ind. Apr. 8, 2016)

    The bankruptcy court rules that the government’s claim for penalties incurred by the debtor for false representations in unemployment benefit applications are not dischargeable. The debtor conceded that the debt for repayment of benefits was not dischargeable but disputed that the penalties imposed were dischargeable. The court finds that the penalties arose out of the fraudulent representations and thus were not dischargeable pursuant to 11 U.S.C. § 523(a)(2). Opinion below.

    Judge: Lorch

    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
    Section 105(a): No Roving Writ, Much Less a Free Hand
    2016-04-05

    Section 105(a) of the Bankruptcy Code acts as the Bankruptcy Code’s equitable backstop, empowering bankruptcy courts to “issue any order, process, or judgment that is necessary or appropriate to carry out [its] provisions” and to, “sua sponte, take[e] any action or mak[e] any determination necessary or appropriate to enforce or implement court orders or rules, or to prevent an abuse of process.” Does section 105(a), though, authorize

    Filed under:
    USA, Insolvency & Restructuring, Litigation, Weil Gotshal & Manges LLP, Writ, Title 11 of the US Code, United States bankruptcy court
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP
    Knock Off the Knock-Offs, Part II: SDNY Bankruptcy Court Holds That Defendant’s Judgment Debt on Account of His Company’s Trademark Infringement is Not Dischargeable Under Section 523(a)(6)
    2016-03-31

    As we previously reported here at the Weil Bankruptcy Blog, in Burberry Limited and Burberry USA v.

    Filed under:
    USA, New York, Insolvency & Restructuring, Litigation, Trademarks, Weil Gotshal & Manges LLP, Bankruptcy, Debt, Trademark infringement, United States bankruptcy court, US District Court for the Southern District of New York
    Location:
    USA
    Firm:
    Weil Gotshal & Manges LLP

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