In Lender-on-Lender Violence, an ‘Uptier’ Financing Bites the Dust, this Time in Houston
Fancy drafting by ‘brilliant financiers and lawyers,’ the judge said, didn’t validate an uptier transaction when the ‘effect’ was to release collateral without a two-thirds vote.
A Business that Never Generated Income Is Eligible for Subchapter V, Judge Norman Says
The definition of ‘small business’ uses the word ‘activities,’ not ‘operations,’ making nonoperating small business eligible for Subchapter V.
Jackson Walker May Depose the U.S. Trustee in the Fee Dispute over Nondisclosure
The bankruptcy judge in Houston denied the U.S. Trustee’s motion to quash deposition subpoenas in the fight over disgorgement of fees for failure to disclose an allegedly close relationship between the judge and a firm lawyer.
A Plan Appeal Wasn’t Equitably Moot, Even Though Reversal Might Rejigger New Equity
A district court in Houston denied a motion to dismiss a confirmation appeal as equitably moot, although reversal might alter ownership of the reorganized debtor.
The ‘Insured vs. Insured’ Exclusion in a D&O Policy Doesn’t Apply to a DIP
When a DIP sues a former officer, the bankruptcy ‘exception’ in a D&O policy provides coverage when the ‘insured vs. insured’ exclusion would otherwise deny coverage.
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.