Rochelle's Daily Wire

Ninth Circuit abjures bright lines in favor of a flexible approach to defining recoupment.

Delaware district judge holds that the final bid at auction, not the lender’s last credit bid, fixes the value of the lender’s collateral.

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.

The government lost a winnable appeal by failing to present evidence in bankruptcy court.

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.

Since they weren’t bankruptcy lawyers, the firm wasn’t disqualified for the first nondisclosure offense. The second time, Delaware’s Judge Dorsey ordered disqualification and disgorgement

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.

Agreeing to bidding procedures can waive the right to make the Section 1111(b) election, Judge Hoffman says.

Pragmatic opinion by Circuit Judge Ambro allows cramdown to achieve ‘rough justice.’

Even when after a finding of bad faith, the court retains discretion to deny punitive damages, Third Circuit says. Compensatory damages are not available if the debtor was failing anyway.