Giving Inferior Classes Nothing May Not by Itself Amount to ‘Fair and Equitable’
Conducting a valuation hearing on a cramdown plan isn’t always required.
Second Circuit Affirmance Shows How Proper Structuring Avoids Merit Management
The Second Circuit shows how a properly structured leveraged refinancing avoids attack as a fraudulent transfer despite the Supreme Court’s effort at narrowing the ‘safe harbor.’
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Second Circuit Allows Sale of ‘General’ Claims Subject to a Creditor’s Disputed Lien
Second Circuit leaves open the question of whether a trustee can sell a ‘general’ or ‘derivative’ claim that’s subject to a valid lien held by a creditor.
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Upstate New York Bankruptcy Judge Nixes an ‘Opt-Out’ Plan with Nondebtor Releases
After Purdue, bankruptcy judges are now split on whether mass-tort plans are permissible if creditors must opt out.
New York Court Holds that ‘Future’ Asbestos Claims Can Be Discharged Without a Trust
Professors disagree on whether latent asbestos claims can be discharged without a trust for future claimants.
Preserving Defensive Setoff Rights Doesn’t Require Filing a Claim, Judge Glenn Says
Defensive setoff rights are not discharged by chapter 11 confirmation, even when no proof of claim was filed.
Denial of a Debtor’s Motion to Dismiss a Petition Isn’t Appealable, Second Circuit Says
In practical effect, the Second Circuit’s opinion means that a chapter 7 debtor may never appeal denial of a motion to dismiss a petition.
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Established Law Pointed Judge Lane Toward Dismissing Giuliani’s Chapter 11 Case
New York’s Judge Sean Lane saw no reason for forcing holders of a $148 million defamation judgment ‘to wait years’ for a ‘modest distribution.’
Misleading Ads to Poach a Debtor’s Customers Is No Stay Violation, Circuit Says
The Second Circuit gives competitors license to mount false advertising unless it’s ‘virtually certain’ to affect a debtor’s customer contracts or goodwill.
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A Chapter 7 Case Raises Issues in Truck Insurance on Standing in Bankruptcy Cases
Judge Mastando in New York decided that a chapter 7 trustee has authority to put the debtor’s subsidiary voluntarily into bankruptcy.