Texas Southern District

Houston Judge Confirms an ‘Opt-Out’ Plan with Nondebtor Releases

In the first opinion on the issue after Purdue, Bankruptcy Judge Christopher Lopez holds that Purdue did not change Fifth Circuit law where ‘hundreds’ of ‘opt-out’ plans have been confirmed with nondebtor releases.

Payments Made with Insurance Nevertheless Were Preferences, District Judge Says

Payments from insurance must be properly structured to avoid preference liability.

Sub V Trustee Lacks Standing to Pursue an Adversary Proceeding for the Debtor

Bankruptcy Judge Eduardo Rodriguez of Houston opined on the limited powers of a Subchapter V trustee.

Barton Doctrine Protected a Receiver from an Automatic Stay Violation

The district court properly reversed and dismissed for lack of subject matter jurisdiction under Barton.

Reference Withdrawal on Houston Ethics Probe Pits UST Against Bankruptcy Judge

Despite consent by the firm to withdraw the reference of motions to disgorge its fees, a bankruptcy judge in Houston recommended against withdrawal to district court and against transfer to another district.

Bankruptcy Code Overrides Contrary Delaware Corporate Law, Judge Lopez Says

Whether a creditor violated the automatic stay is not arbitrable in bankruptcy.

Two Judges Agree: A Class with No Votes Isn’t Considered in Confirming a Sub V Plan

One month apart, two Houston bankruptcy judges held that a non-voting class is not deemed to have voted against a plan.

Issue Preclusion Saddles Alex Jones with $1.2 Billion in Nondischargeable Debt

Bankruptcy Judge Christopher Lopez of Houston will hold trials that could result in more nondischargeable debt for Alex Jones.

In Sub V, a Class with No Votes Isn’t Considered in Confirming a Chapter 11 Plan

Former Bankruptcy Judge David R. Jones disagreed with a colleague, who had held that a non-voting class is considered as having voted against a plan.

Payments Were Preferences Even Though They Were Made with Insurance Proceeds

A preference opinion from Houston counsels creditors to be cautious when they are expecting payment from insurance.

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