Delaware

Discretionary Bonuses Are Not Per Se Fraudulent Transfers

Discretionary bonuses by an insolvent employer are not automatically fraudulent transfers, Judge Silverstein says.

Creditors of LPs or LLCs Can’t Sue for Breach of Fiduciary Duty

Creditors lack standing in Delaware and other states for derivative liability suits against officers and managers of LPs and LLCs.

Delaware’s Judge Walrath Writes a Primer on Consignments

Perfecting a consignment is easy, but failing to do so is disastrous.

Reading Stern Narrowly, Delaware Judge to Issue Final Order in Fraudulent Transfer Suit

Judge Sontchi declines to rule that 28 U.S.C. § 157 is unconstitutional by denominating fraudulent transfer suits as ‘core’ proceedings.

Barton Also Protects Asbestos Trusts, Delaware Judge Says

If a suit filed in violation of Barton ends up in bankruptcy court, must the judge still dismiss? The courts are split.

Delaware Judge Allows Unsecured Claim for Contractual Attorneys’ Fees

Delaware district judge reads Supreme Court’s Travelers opinion as requiring the allowance of post-petition contractual claims for attorneys’ fees.

Triangular Setoff Barred (Again) in Delaware

A triangular setoff, valid under state law, is unenforceable in bankruptcy under Section 553(a).

Liquidators Conducting GOB Sales Are Not ‘Professionals’ Covered by Section 327

U.S. Trustee rebuffed in subjecting liquidators to retention as ‘professionals’ under Section 327.

District Court Finds Constitutional Power to Grant Releases in Confirmation Orders

Delaware district judge rules that the bankruptcy court has final adjudicatory power to include third-party releases in confirmation orders.

Delaware District Judge Upholds Horizontal ‘Gifting’ in a Chapter 11 Plan

Narrow reading of ‘equitable mootness’ in Tribune is limited to cases involving a dispute between two classes.

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