In Stalking Horse Sales, Courts Have Flexibility to Reopen Bidding After the Deadline
The debtor’s duty to land the best price for an asset can overcome the winning bidder’s expectation that sale procedures will be enforced rigorously.
Forbearance Agreement Wasn’t an Enforceable Waiver of the Automatic Stay
Bankruptcy Judge Laura Grandy (politely) faulted other federal courts for failing to follow the Illinois mortgage statute and decisions by the Illinois Supreme Court.
A Foreign Branch of an FDIC-Insured U.S. Bank Remains Ineligible for Chapter 15
The district court affirmed the holding by Bankruptcy Judge Martin Glenn that a foreign branch of a U.S. bank isn’t eligible for chapter 15.
Benchnotes April 2025
Journal Issue:
Nondischargeability in Sub V Only Applies When It’s a Nonconsensual, Cramdown Plan
A creditor must control a class before its debt can become nondischargeable in Subchapter V.
Although Exempt, Social Security Benefits Must Be Reported in Subchapter V
While neither Social Security benefits nor post-petition income are estate property in Subchapter V, they must be included in an individual’s monthly operating reports, Bankruptcy Judge Jacobvitz says.
Court:
Judge Christopher Klein Writes ‘Cliffs Notes’ on Transferring Venue of Related Cases
In transferring venue of a related case under Rule 1014(b), the bankruptcy court can move sua sponte and need not await a venue motion by a creditor or party in interest.
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.
The Insurer Exception to Discharge Injunction: More Theoretical than Real?
The self-insured retention can prevent a creditor from using the insurer exception to sue the insurance company with the debtor as a nominal defendant.
Court: