Opinion Finding Fraud Shows the Dangers in an Agreement to Finance Litigation
Chapter 7 trustee was precluded from terminating a lawsuit because a secured lender had been given the right to settle.
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Delaware Judge Issues Comprehensive Opinion on Makewholes and Unmatured Interest
Split grows on allowance of makewholes and what constitutes disallowed, unmatured interest.
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Delaware Bankruptcy Judge Dismisses a Lawsuit for Forum Non Conveniens
Although a chapter 11 plan can bind parties throughout the world, Judge Sontchi wouldn’t let a foreign debtor sue a foreign bank in the Delaware bankruptcy court over a transaction that occurred in England.
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Bar Date Notice by Email Is Insufficient, Delaware’s Judge Goldblatt Says
Notice by email may satisfy due process but doesn’t comply with notice by ‘mail’ under Bankruptcy Rule 2002.
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Issue and Claim Preclusion Didn’t Bar Challenging a Lien Previously Considered Valid
Newly applicable law permitted a chapter 13 debtor to cram down a lien that the debtor previously had considered to be valid.
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Bankruptcy Courts Aren’t Prohibited from Entering Mareva Injunctions
The Supreme Court’s Grupo Mexicano decision doesn’t bar a bankruptcy court from freezing a defendant’s assets prior to judgment in a fraud action, Judge Sontchi says.
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Critical Vendor Status Is No Defense to a Preference Claim
Critical vendor status is a defense to a preference claim only when the defendant was specifically named in an order, stipulation or agreement requiring full payment of the creditor’s prepetition claim, Judge Dorsey says.
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Contingency Fees Under a Trust Indenture May Not Result in a Claim, Judge Shannon Says
A standard provision in a trust indenture meant no recovery for the indenture trustee’s attorneys.
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Judge Sontchi Cuts Off U.S. Trustee Fees on Confirmation of a Chapter 11 Plan
Closing a chapter 11 case after confirmation to avoid U.S. Trustee fees won’t be necessary if the ruling by Judge Sontchi holds up.
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Increasing Debtor’s Profit or Revenue Isn’t Required to Establish an ‘Admin’ Claim
An administrative creditor isn’t a ‘guarantor’ of the success of the project, Delaware’s Bankruptcy Judge Goldblatt says.
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