Denial of $21 Million in Fees for Boy Scouts Ad Hoc Committee Upheld on Appeal
Delaware district court rules that debtors and trustees alone have standing to propose spending estate money outside of the ‘ordinary course.’
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Applying Pressure on the Debtor Obviates the ‘Ordinary Course’ Defense to a Preference
The ‘ordinary course’ defense only applies to credit terms with healthy customers, not to debtors in financial distress, even if pressure is ordinary in the industry.
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Alternatives to Bankruptcy, Including Receiverships and ABCs
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The Client’s Business Judgment Held to Justify a ‘Discretionary’ Fee Award
A district court in New Jersey says that a discretionary fee award is neither a bonus nor an enhancement.
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Fifth Circuit Holds that Equitable Mootness Doesn’t Protect Parties to the Appeal
Fifth Circuit didn’t permit plan proponents to structure a chapter 11 plan so that an appeal would be equitably moot.
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Fifth Circuit Bans Uptier Financings for Violating the Principle of Ratable Treatment
The Fifth Circuit declines to adopt a securities industry guidebook for what’s a permissible financing.
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District Courts Disagree on Enforcing an ‘Automatic Stay’ Protecting Nondebtors
A district judge in Ohio declined to sit as an appellate court by deciding whether a bankruptcy court in another state had properly ‘spread’ the automatic stay.