Business Reorganization

Denver Judge Sides with the Circuits: Nondischargeability Infects Subchapter V

Bankruptcy judges continue to disagree on whether debts of corporations with cramdown plans in Subchapter V can have nondischargeable debts.

Supreme Court Holds: § 106(a) Doesn’t Waive Sovereign Immunity for § 544(b) Suits

In an 8-1 opinion, the Supreme Court holds that the waiver of sovereign immunity under Section 106(a) does not extend to suits brought by a trustee under state law standing in the shoes of an actual creditor.

Another Fifth Circuit Humdinger: This Time, Limiting Gatekeeping

Picking up where Serta Simmons left off, the Fifth Circuit nixes another creative chapter 11 plan.
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Courts Divided on Broad or Narrow Grounds for Transferring Venue Under Section 1412

Some courts don’t transfer venue under 28 U.S.C. § 1412 if the claims are only ‘related to’ the bankruptcy and don’t arise in the bankruptcy case or arise under the Bankruptcy Code.

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