Fraudulent Transfer Law Doesn’t Victimize Innocent Parties, Judge Wiles Says
Ownership of a bank account isn’t enough by itself to make the account holder the initial transferee of a fraudulent transfer.
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.
Second Circuit Holds that Flip Clauses in Swaps Are Enforceable
Even if flip clauses are ipso facto clauses, the Second Circuit holds that enforcement is permitted by the safe harbor in Section 560.
Court:
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.
Second Circuit Broadly Caps Wage Claims Accelerated Before Bankruptcy
Second Circuit prevents ‘artful drafting’ from evading the cap on golden parachutes under Section 502(b)(7).
Court:
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.