Delaware

Arguments Both Ways, Power to De-Designate from Subchapter V Left Undecided

Although deposed as debtor in possession, the Subchapter V debtor retains the sole power to file a chapter 11 plan.

Third Circuit Importuned to Rule on Survival of the Solvent-Debtor Exception

Sticking to her guns, Bankruptcy Judge Mary Walrath rules that the solvent-debtor exception was abrogated by the adoption of the Bankruptcy Code, but certifies a direct appeal to the Court of Appeals.

A ‘Notwithstanding’ Clause May Not Control a Specific Provision, District Judge Says

An appeal to the Third Circuit may tell us whether a ‘notwithstanding any other provision’ clause really means what it says.

Delaware Judge Approves ‘Uptier’ Financing that Involuntarily Subordinated Debt

Bankruptcy Judge Craig T. Goldblatt declined to interpret an indenture’s ratable treatment clause as anti-subordination in disguise.

Delaware Supreme Court: No ‘Insolvency Exception’ for Asset Sales

Delaware corporations must have shareholder approval to sell all or substantially all assets outside of bankruptcy.

Judge Walrath Describes Due Diligence to Plead After the Amendment to Section 547(b)

The amendment to Section 547(b) does not require a preference complaint to explain why the defendant doesn’t have affirmative defenses, Judge Walrath says.

Delaware District Judge Says: Don’t Use ‘Nunc Pro Tunc’ When You Mean ‘Retroactive’

Submitting a retention order with the wrong word resulted in a pivotal issue on appeal.

To Be a Section 544(b)(1) Predicate Claim for a 10-Year Lookback, the Claim Must Be Filed

A claim of the IRS can provide a 10-year lookback for avoidance actions, but the claim must have been filed.

Special Counsel with an Actual Conflict Faces Disgorgement of Fees in Delaware

Judge Sontchi set aside a prior order preventing the trustee from controlling litigation brought in the trustee’s name.

Horizontal ‘Gifting’ Approved in Mallinckrodt’s Confirmed Chapter 11 Plan

Mallinckrodt’s nondebtor releases didn’t have the defects that infected Purdue and Patterson.

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