Dissolved Corporation May Not File to Reorganize in Chapter 11, Only to Liquidate
Dissolved by forfeit, a corporation cannot reinstate a charter and may resort to bankruptcy only to liquidate, Judge Eduardo Rodriguez says.
Bankruptcy Judges Disagree About Abatement of Rent During the Pandemic
Neither the Bankruptcy Code nor state law permits reducing rent when government regulations restrict a debtor’s ability to generate income, Judge Isgur says.
Judge Isgur Sides with the Third Circuit and Allows Makewhole Premiums
Creditors are entitled to ‘default interest’ when the debtor is solvent.
Houston Judge Rejects Tenth Circuit Opinion Immunizing Subsequent Transferees
Proceeds from fraudulently transferred property can be recovered from subsequent transferees, Judge Rodriguez says, differing with the Tenth Circuit’s Generation Resources opinion.
Texas Mineral Liens May Be Modified in a Subchapter V Cramdown Plan
A cramdown plan can reduce the collateral coverage for secured creditors.
Caution: Trusts Under a Plan Might Dissolve Automatically If Not Extended
Language in the documents prevented trusts from dissolving automatically when the trustee missed a deadline for extending the duration of the trusts, Judge Isgur said.
Houston Judge Rejects the Jay Alix Protocol, Allows Retention Under Section 327(a)
Bankruptcy Judge David Jones finds the Jay Alix Protocol to be ‘completely unnecessary.’
Houston Judge Enjoins SBA from Excluding Bankrupt Companies from PPP Loans
Judge David Jones found no basis in the Cares Act for precluding chapter 11 debtors from receiving PPP “loans” that the company isn’t required to repay.
Lender and Servicer Held Liable for Making False Claim for Real Estate Taxes
Judge Rodriguez holds servicer and lender liable under Rule 3002.1 and the FDCPA for making a claim for unpaid real estate taxes that had been paid.
An Objection to Third-Party Releases Must Be Raised in Bankruptcy Court
A non-objecting creditor is bound by a third-party release even if the release may have been improper.