One thing that Toys “R” Us, Sears and Forever 21 have in common is that all three cases are administratively insolvent.[1] Vendors who extended credit to the debtor after the petition date, in reliance on the debtor’s assurances that it had adequate “DIP” financing to justify new credit terms, got stuck a second time when there were in
The safe harbor provision in 11 U.S.C. § 546(e) provides, in relevant part, that a trustee may not avoid a transfer “made by or to (or for the benefit of) a ... financial institution ...
FirstEnergy[1] sells electricity to customers in six states. It commenced a chapter 11 bankruptcy case in May 2018 in which it sought to reject long-term power purchase agreements (PPAs) entered into several years prior to bankruptcy.
The Supreme Court recently clarified that the finality of a bankruptcy court order is determined by evaluating whether the order unreservedly adjudicates a discrete proceeding or is part of a larger process. In Ritzen Group Inc. v.
In an opinion issued in December 2019, the Third Circuit found that the bankruptcy court below had constitutional authority to confirm a plan containing compelled third-party releases because — on the “specific, exceptional facts of [the Millennium Lab] case” — those releases were “integral to the restructuring of the debtor/creditor relationship.”
Courts rarely grant motions for reconsideration, but the U.S. Bankruptcy Court for the District of Delaware did just that in the context of fee-shifting sanctions in In re NNN 400 Capital Center 16, LLC.[1] While the court ultimately upheld the sanctions, it provided a thorough analysis of a court’s ability to shift fees.
According to the U.S. Bankruptcy Court for the Western District of Oklahoma, if pre-petition attorney’s fees are included in the mortgage creditor’s proof of claim, contemporaneous time records are required to establish the reasonableness of those fees.
In order for a trustee to surcharge expenses under § 506(c), he “must prove that [his] expenses were reasonable, necessary, and provided a quantifiable benefit” to the secured creditors property.[1] The trustee must show some benefit sufficient for surcharge under this objective test, identify the specific expenses, tie them to specifi
