Claims Located in the U.S. Make a Foreign Debtor Eligible for Chapter 15
The Second Circuit’s Barnet opinion on Section 109(a)’s requirement of property in the U.S. is satisfied by claims located in the U.S.
Chapter 15 Allows Discovery Not Available under Foreign Law, New York Judge Says
Bankruptcy Judge Shelley C. Chapman skirts an arbitration agreement to allow discovery.
Non-Consensual Third-Party Releases Pass Muster in Chapter 15
Principles of comity justify enforcing a U.K. scheme of arrangement that releases non-filed affiliates’ guarantees.
District Court Endorses Opt-Out to Confirm Substantive Consolidation Plans
Augie/Restivo problems are avoided by including opt-out provisions in a substantive consolidation chapter 11 plan.
Madoff Opinions Ease Pleading Requirements in Suits Against Subsequent Transferees
Bankruptcy Judge Vyskocil holds that alter ego need not be alleged to recover from a corporation’s sole shareholder as the beneficiary of a fraudulent transfer.
SIPA Bars General Unsecured Claims for Failure to Transfer Accounts Before Filing
The trustee for a bankrupt broker can ignore an individual customer’s request to transfer securities to a solvent broker and may instead transfer customer accounts in bulk.
Flip Clauses in Swaps Held Enforceable by District Judge in New York
For swaps, the Section 560 safe harbor overrides the anti-ipso facto provisions in the Bankruptcy Code.
Plan Confirmation Cuts Off Adverse Claims to Ownership of Debtor’s Property
Res judicata is flexibly applied again to bankruptcy cases.
The GM Creditors’ Trust Opens a Can of Worms by Nixing a Settlement
Bankruptcy judge finds bad faith for walking out on a fully documented but unsigned settlement.
The Proper Role of an Expert on Willful Blindness in a Fraudulent Transfer Suit
Madoff spawns more law, this time on expert testimony about the good faith defense to a fraudulent transfer with ‘actual intent.’