Earlier this month, we lost Judge Joseph E. Irenas, Senior United States District Judge for the District of New Jersey. He is remembered as a thoughtful jurist, a dedicated teacher, and a valued mentor. This blogger had the pleasure of meeting Judge Irenas only briefly, but his dignity and charm were immediately apparent.
Section 303(b)(1) of the Bankruptcy Code allows an involuntary petition to be filed by three or more creditors who hold non-contingent claims totaling at least $15,325 more than the liens on the debtor’s property. Those creditors then must prove that the debtor was generally not paying its debts as they came due within the guidelines
One of the main benefits of bankruptcy is the ability of a debtor to reject its burdensome contracts. Although a debtor’s right of rejection appears to be relatively straightforward, section 365 of the Bankruptcy Code can raise a number of issues. One such issue is whether the contract is executory. If the contract is not executory, a debtor may not avail itself of section 365’s rejection powers. Usually it is the debtor who argues in favor of the executory nature of a contract; however, this was not the case in
It has long been the case that secured creditors could be charged for the reasonable and necessary costs incurred to preserve the value of their collateral. This equitable principle emerges out of case law that predates not only the current Bankruptcy Code, but also its immediate predecessor, the Bankruptcy Act of 1938. As now codified in section 50
It is widely known that one of the basic tenets of U.S.
(Although it is not typically our practice to analyze personal bankruptcy cases if the issues do not also arise in corporate bankruptcy practice, we report on the decision discussed below because it involves the intersection of bankruptcy law and a particularly topical issue – same-sex marriages and domestic partnerships.)
When a bankruptcy case is dismissed for cause pursuant to section 1112(b) of the Bankruptcy Code, the effect of the dismissal on orders entered during the case is not always clear. A recent District of Delaware decision,
Cases analyzing rights under indentures – and the transactions holders and issuers contemplate (or not) under indentures – continue to gain attention in the restructuring world. Some of those cases involve section 316(b) of the Trust Indenture Act (see our own blog’s recent posts) and payment rights under indentures. Others, such
“[T]he automatic stay is automatic as applied to a debtor because that is what the statute says.
As to non-debtors, it is relief that is available, but it is not automatic.”
– Judge Brian M. Cogan (E.D.N.Y.), August 20, 2015