Should a membership agreement governing a debtor’s interest in an LLC be treated as property of the estate or an executory contract? Equally, should a debtor’s economic and non-economic interests in an LLC be treated as property or a contractual right? Can’t make up your mind? Don’t worry—the bankruptcy courts can’t either.
This is the second of two posts on Saracheck v. Crown Heights House of Glatt, Inc., a recent decision from the Bankruptcy Court for the Northern District of Iowa regarding an avoidance action against food distributor, Crown Heights House of Glatt, Inc.
Regardless of whether a creditor has a claim identified in a debtor’s schedules of assets and liabilities, generally speaking, most attorneys representing creditors in the context of a chapter 11 case will advise their clients to file a formal proof of claim with the bankruptcy court. Often this is just “belts and suspenders” and a matter of good practice but, if nothing else, a formal proof of claim will serve to protect a creditor’s rights and interests vis à vis the estate.
As we began discussing this week in our previous entries, on August 26, 2014, Judge Drain of the Bankruptcy Court for the Southern District of New York issued a momentous bench ruling in connection with the confirmation hearing of
This article has been contributed to the blog by Patrick Riesterer. Patrick Riesterer is an associate in the insolvency and restructuring group of Osler, Hoskin & Harcourt LLP.
NORTH OF THE BORDER UPDATE
Who are we kidding? The topic of statutory insiders has been a blog favorite, year after year.
Secured creditors naturally want to be repaid. Sometimes secured creditors go as far as asking a debtor to waive its right to seek bankruptcy protection. Although such clauses are frequently held to be unenforceable, we previously have discussed exceptions for LLCs.
Can a nondischargeability suit survive after a claim is deemed “satisfied in full” under a confirmed plan? The Tenth Circuit recently considered this question in Bank of Commerce & Trust Co. v.
What does Memorial Day weekend mean to you? Perhaps it means having a nice long weekend with family and friends? Or spending hours sitting in traffic with all the people who are getting away from it all for the weekend? Or maybe you are a traditionalist and will spend the weekend getting all of your white clothes out of Manhattan Mini Storage. Well, for the Weil Bankruptcy Blog, the start of Memorial Day weekend means one thing — the return of Bankruptcy Beach Reading.