Small Business

To Dismiss for ‘Loss or Diminution,’ the Focus Is on Losses After Filing, BAP Says

Losses before filing or during prior aborted reorganizations do not control dismissal of a new reorganization for ‘continuing loss or diminution,’ First Circuit BAP says.
Court: 

In Sub V, No Compensation for a Rehearing Motion Contrary to Circuit Authority

After the court had denied contract assumption, there was no compensation for keeping assumption alive pending appeal.

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.

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.

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.

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