The Fate of Jackson Walker Is Now in the Hands of a District Judge from Another District
The district judge who excoriated Jackson Walker in a decision last year will now decide whether the firm must disgorge what it was paid in dozens of large chapter 11 cases.
Texas Courts Are Split on Ignoring Nonvoting Classes in Confirming a Sub V Plan
A bankruptcy judge in San Antonio disagreed with two bankruptcy judges in Houston by holding that a nonvoting class is equivalent to rejecting a plan in Subchapter V of chapter 11.
Third J&J Filing Dismissed on Grounds Different from the First Two Dismissals
Houston’s Bankruptcy Judge Christopher Lopez decided that the newest plan by a Johnson & Johnson subsidiary didn’t qualify for nondebtor releases permissible in asbestos cases.
Priority Wage Claims Paid After Filing Are Counted Toward the Sub V Debt Cap
Wage claims and claims of critical vendors paid under ‘first day orders’ are counted toward the Subchapter V debt cap that’s rising on April 1 to about $3.4 million.
Estimated Tax Payments Made Before Filing Aren’t Fraudulent Transfers to the IRS
When estimated tax payments are ‘reasonable’ estimates of the year’s taxes, they aren’t fraudulent transfers, district judge says
For an Individual Chapter 11 Debtor, the Usual Retention Rules Don’t Always Apply
When retention benefits the chapter 11 debtor individually but not the estate, Bankruptcy Judge Christopher Bradley believes that compensation is not subject to approval under Section 330.
A District Court Decision Implies that Marshaling Is Impermissible in Bankruptcy
The circuits are split on whether a bankruptcy court can compel marshalling by the IRS.
In Lender-on-Lender Violence, an ‘Uptier’ Financing Bites the Dust, this Time in Houston
Fancy drafting by ‘brilliant financiers and lawyers,’ the judge said, didn’t validate an uptier transaction when the ‘effect’ was to release collateral without a two-thirds vote.
A Business that Never Generated Income Is Eligible for Subchapter V, Judge Norman Says
The definition of ‘small business’ uses the word ‘activities,’ not ‘operations,’ making nonoperating small business eligible for Subchapter V.
Jackson Walker May Depose the U.S. Trustee in the Fee Dispute over Nondisclosure
The bankruptcy judge in Houston denied the U.S. Trustee’s motion to quash deposition subpoenas in the fight over disgorgement of fees for failure to disclose an allegedly close relationship between the judge and a firm lawyer.