Releases, a/k/a Exculpations, of Insiders Barred Under a Chapter 11 Plan
Bankruptcy Judges Wiles in New York decided that insiders were not entitled to releases under Section 503(c), but not for the reasons contained in Purdue.
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Delaware Judge Explains How to Obtain a PI Protecting Nondebtors After Purdue
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.
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Delaware Judge Pegs Low Values for Crypto Tokens in FTX Bankruptcy Case
The debtor’s prebankruptcy machinations to inflate the value of tokens resulted in low claim valuations in bankruptcy.
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An ‘Admin’ Claim Isn’t Mandated for Nonpayment of Rent Before Automatic Rejection
To align with congressional intent underpinning Section 365(d)(3), Judge Gravelle gave the landlord an administrative claim for base rent due after filing and before automatic rejection.
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Concurrent Representation of a Major Creditor/Shareholder Is/Isn’t Disqualifying
Concurrent representation of a 43% shareholder was disqualifying while representing a creditor with 79% of the debt did not disqualify.
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Res Judicata Bars Objections to Plan Amendments that Could Have Been Raised Before
Is feasibility of a plan reviewed for abuse of discretion or clear error? The circuits are split.
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Selling IP for a Stream of Unsecured Payments Is a Roadmap to Disaster, Third Circuit Says
A Third Circuit decision shows the breadth of unliquidated and contingent claims.
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Can a U.S. Court Sell a Foreign Debtor’s U.S. Assets ‘Free and Clear’?
Delaware’s Judge Laurie Selber Silverstein tackled several novel questions about a U.S. court’s authority in chapter 15 to approve novel, foreign transactions and sell the foreign debtor’s property in the U.S.
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District Court Disregards the Bankruptcy Court’s Authority over Post-Petition Fees
Seemingly in conflict with Section 329, a district court decided that a chapter 7 debtor’s attorneys could sue for post-petition fees, even though the firm never disclosed the fee arrangement as required by Section 329 and Rule 2016.
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ERISA Claims Resolved in Bankruptcy Court, Not Through Arbitration
With two federal statutes in conflict, Delaware’s Judge Goldblatt found a rebuttable presumption in favor of enforcing arbitration.
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