Rochelle's Daily Wire

After Purdue, two bankruptcy judges now say that preliminary injunctions protecting nondebtors are permissible to foster successful chapter 11 reorganizations.

In the first decision on the topic after Purdue, Delaware’s Judge Goldblatt denied the debtor’s motion for a preliminary injunction to stop a lawsuit against nondebtors.

The Third Circuit gave royalty owners a constructive trust over royalties improperly paid to secured creditors. The circuit court did not rule on remedy.

A bankruptcy judge in Oregon was unable to follow renowned Bankruptcy Judges ‘Burt’ Lifland and ‘Mike’ Lynn, who granted critical vendor motions.

District judge in Connecticut upheld an award of ‘default’ interest, even though the fully secured lender had opposed the chapter 11 process and resisted the use of its cash collateral.

Undisclosed representation of the debtor’s principal resulted in denial of all compensation sought by counsel for the corporate debtor.

Judge Clarkson laid down guidelines for a lawyer who copies pleadings written by another lawyer in a different case.

In a concurrence, Circuit Judge Jordan questions whether rollups are permitted under Eleventh Circuit authority.

Officers are presumptively disqualified from KERPs, “absent a strong showing that they do not perform any significant role in management,” a district judge in New York says.

An appeal from a critical vendor order was dismissed as equitably moot.