New York Judge Nixes $2.45 Billion in DIP Financing as a Sub Rosa Plan
Even though the price and terms were ‘entirely fair,’ Bankruptcy Judge Garrity disapproved DIP financing that would have locked in the right of controlling shareholders to purchase new stock at a 20% discount.
Rejection Didn’t Rescind Sale of Future Credit Card Receivables, New York Judge Says
Bankruptcy Judge Glenn hints that the lenders and the debtor should mediate tough questions about the enforceability of a $150 million ‘sale’ of future credit card receivables.
Student Loan Servicer Sanctioned $378,000 for Civil Contempt by New York Judge
Bankruptcy Judge Martin Glenn imposed civil contempt sanctions for ignoring court orders over five years.
Trustee Ordered to Disgorge Fees for Failing to Pay the U.S. Trustee’s Fees
The power to order disgorgement of fees arose under Section 105(a), not from Sections 330 or 331.
No ‘Core’ Jurisdiction to Protect Nondebtors with Injunctions, N.Y. District Judge Says
New York district judge differs with the Third Circuit on a bankruptcy court’s constitutional power to issue nondebtor, third-party releases.
Using a Casino’s ATM Makes the Casino the Initial Transferee, Not a ‘Mere Conduit’
New York judge gives casinos the responsibility for assuring that a gambler’s use of a corporate ATM card is not a fraudulent transfer.
Majority of Courts Still Permit Small-Dollar Avoidance Suits in the Debtor’s Home Court
New York district judge agrees with the ABI Journal: Congress did not succeed in requiring trustees to file small-dollar avoidance actions in the defendant’s district.
Fines for Defrauding Consumers Are Dischargeable in a Corporate Chapter 11 Plan
Courts are divided on discharging fines in a corporate chapter 11 case when the government itself was not defrauded.
Saving a Failing Company Doesn’t Entail ‘Defalcation’ Regarding Union Obligations
A properly drafted union contract still failed to leave a company officer with a nondischargeable debt for failing to make employer contributions to a union welfare fund.
No Contempt for the IRS on Discharge Without Exhaustion of Administrative Remedies
Is Taggart just a defense that can be waived, or must a debtor plead and prove ‘no objectively reasonable basis’ in a motion for contempt of discharge?