Delaware

Delaware District Judge Defines ‘Unfair Discrimination’ in Cramdown

A $30 million haircut is not ‘unfair discrimination’ to preclude cramming down a plan.

Delaware’s Judge Sontchi Writes a Seminal Opinion on Sovereign Immunity

A bankruptcy court’s in rem jurisdiction overrides a claim of sovereign immunity.

Bankruptcy Code Preempts State Law Invalidating KERPs, Delaware Judge Says

A waiver in a KERP is enforceable even if it violates state labor law, Judge Carey rules.

Stern Held Inapplicable to Orders Denying Summary Judgment

Delaware district judge explains why Stern doesn’t confer the equivalent of an appeal from an interlocutory order.

New Jevic Settlement Fails, Making Supreme Court’s Reversal More Costly

Unlike Rodney Dangerfield, Jevic workers get respect when Delaware judge rejects a new settlement they dislike.

Delaware & New York Courts Still Agree on Treatment Among Undersecured Creditors

Post-petition interest accruals aren’t counted in figuring distributions among undersecured creditors with liens on the same collateral.

Federal Common Law of Constructive Trust Works When State Law Won’t

Delaware judge shows sympathy for a creditor being stiffed by the debtor.

Delaware Judge Nixes the Notion of Implied Assumption of Executory Contracts

An asset purchaser cannot escape liability for appropriating the benefits of a contract that was not assumed and assigned.

Consumer Protection Claims by Governments Are Discharged in Chapter 11

Consumer protection claims brought by states are nondischargeable in chapter 11 only when the state has been the target of fraudulent representations.

Bankruptcy Courts Aren’t ‘Courts’ and Don’t Have Power to Transfer

Don’t stretch bankruptcy jurisdiction when the statute of limitations is about to expire.

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