New York Southern District

Texas Judge Disagrees with Second Circuit on Sanctions for Violating Rule 3002.1

Bankruptcy Judge Eduardo Rodriguez explained why the Second Circuit was wrong in ruling that violators of Rule 3002.1 are only liable for compensatory damages.

Affirmance Shows that Merit Management Has Been Gutted in the Second Circuit

Properly structuring a leveraged refinancing in the Second Circuit can avoid attack as a fraudulent transfer despite the Supreme Court’s effort at narrowing the ‘safe harbor.’

Civil Penalties for Defrauding Consumers Weren’t Discharged Under Section 1141(d)(6)(A)

Reversing the bankruptcy court, a district judge in New York held that a civil penalty wasn’t discharged even though the fraud wasn’t committed against the government.

District Judge Rakoff Explains Why the Debtor Alone May Assert a Cure Claim

A creditor can’t assert a cure claim, even though Section 365(b) doesn’t give the counterparty the sole right to demand a cure on assumption of an executory contract.

Being an ‘Officer’ Disqualifies Someone from a KERP, New York District Judge Says

Officers are presumptively disqualified from KERPs, “absent a strong showing that they do not perform any significant role in management,” a district judge in New York says.

IRA Withdrawals Aren’t Protected from Madoff Fraudulent Transfer Judgments

Madoff defendant socked with $280,000 in prejudgment interest for relitigating issues decided long ago.

Filing Chapter 15 as a ‘Litigation Tactic’ Didn’t Bar ‘Foreign Main Recognition’

Bankruptcy Judge Garrity didn’t impose a good faith filing requirement onto foreign main recognition of a chapter 15 case.

Judge Glenn Explains When Structured Dismissals and Comfort Orders Are Ok

Jevic didn’t ban structured dismissals when there is no violation of the rules of priority and the alternatives would create greater administrative insolvency.

U.S. Suit Dismissed After German Defendant Files Insolvency in Germany

Filing a chapter 15 petition wasn’t required for a U.S. district court to dismiss a civil action against a German company undergoing insolvency in Germany.

New York Judge Declines (for Now) to Enforce an Indonesian Plan in the U.S.

Manhattan’s Bankruptcy Judge Sean Lane requires a record in the foreign proceeding showing that third-party releases are in accord with foreign law.

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