New York Southern District

Sub V Plan with Nondebtor Release Approved over Opposition from the Affected Class

A decision from a New York bankruptcy court makes nondebtor releases easier to obtain in Subchapter V than in large, mass tort chapter 11 cases.

Court:

2nd Circuit›New York›New York Southern District

Dispute over Part of a Claim Disqualifies an Involuntary Petitioner

The 2005 amendment to Section 303(b)(1) disqualifies an involuntary petitioner if there is a dispute as to even part of the creditor’s claim.

Court:

2nd Circuit›New York›New York Southern District

Setoff Can’t Be Raised as a Defense to Receipt of a Fraudulent Transfer

The Madoff case makes more law: A claim against a bankrupt estate can’t be set off against liability for receipt of a fraudulent transfer because one arose before bankruptcy and the other arose after.

Court:

2nd Circuit›New York›New York Southern District

A ‘Litigation Tactic’ Isn’t Fatal in Chapter 15

A bankruptcy judge in New York was deferential to foreign liquidators using chapter 15 to extinguish a lawsuit in the U.S. that they saw as a nuisance.

Court:

2nd Circuit›New York›New York Southern District

Foreign Sovereign Immunity Bars the Madoff Trustee from Recovering $20 Million

A district judge in New York reversed the bankruptcy court, which had held that a Kuwaiti public pension fund was not entitled to sovereign immunity for having engaged in commercial activity.

Court:

2nd Circuit›New York›New York Southern District

A RICO Case Shows that Final Fee Allowances Don’t Confer Immunity

The RICO suit by Jay Alix Against McKinsey mostly survived a motion to dismiss.

Court:

2nd Circuit›New York›New York Southern District

Unlike Yesterday’s Story, a Two-Nondebtor Lawsuit Didn’t Have ‘Related To’ Jurisdiction

Unlike the case we reported on yesterday, there was no ‘related to’ jurisdiction because the outcome of a suit between two nondebtors wouldn’t have a direct effect on the bankrupt estate.

Court:

2nd Circuit›New York›New York Southern District