On February 19, 2020, the Small Business Reorganization Act (the “SBRA”) became effective and created a new subchapter V to chapter 11 of the Bankruptcy Code. As we have reported,
Continue Reading Subchapter V Eligibility: Congress Fixes CARES Act Provision That Excluded Affiliates of Issuers But Ignores Potential Eligibility for Foreign, Publicly Traded Companies and Affiliates
Recent Developments in Bankruptcy Law
President Biden Signs Bill Extending Temporary $7.5 Million Subchapter V Debt Limit Increase Into 2024
Today, President Biden signed into law the Bankruptcy Threshold Adjustment and Technical Corrections Act, S. 3823, 117th Cong. (the “Act”), which, among other things, continues the temporary expansion of subchapter…
Continue Reading President Biden Signs Bill Extending Temporary $7.5 Million Subchapter V Debt Limit Increase Into 2024A Day Late and Nearly $5 Million Short?: Legislation Introduced to Make Permanent the $7.5 Million Subchapter V Debt Limit As Temporary Extensions Sunset
On March 14, 2022, Senator Chuck Grassley (R-IA) introduced proposed legislation that—if enacted—would make permanent the $7.5 million debt limit applicable to debtors under subchapter V of chapter 11 of…
Continue Reading A Day Late and Nearly $5 Million Short?: Legislation Introduced to Make Permanent the $7.5 Million Subchapter V Debt Limit As Temporary Extensions Sunset
Not all Forced-Sale Mortgage Foreclosures are Exempt from Avoidance as Fraudulent Transfers Under Section 548 – a Case Study Regarding Application of Supreme Court’s BFP Factors to State Tax Sale Statutes
The United States Supreme Court held in BFP v. Resolution Trust, that properties sold at “force-sale” mortgage foreclosure sales properly conducted pursuant to a state’s foreclosure statute are presumed…
Continue Reading Not all Forced-Sale Mortgage Foreclosures are Exempt from Avoidance as Fraudulent Transfers Under Section 548 – a Case Study Regarding Application of Supreme Court’s BFP Factors to State Tax Sale Statutes
Courts Analyze the Degree of “Commercial or Business Activity” Necessary for a Liquidating Debtor to be Eligible for Subchapter V Relief
“Just enough” is an undeniable—if informal—legal precept. The concept finds its way into canon from adequacy of pleading to application of equity. See, e.g., K-Tech Telecommunications, Inc. v. Time …
Continue Reading Courts Analyze the Degree of “Commercial or Business Activity” Necessary for a Liquidating Debtor to be Eligible for Subchapter V Relief
JEVIC OPINION ILLUSTRATES THE IMPORTANCE OF LANGUAGE USED IN ORDERS
The In re Jevic Holding Corp. chapter 11 case continues to make news. The case is likely best remembered for the 2017 Supreme Court decision holding that the distribution scheme…
Continue Reading JEVIC OPINION ILLUSTRATES THE IMPORTANCE OF LANGUAGE USED IN ORDERS
Delaware Bankruptcy Court Finds Bonus Plan Was Created in the Ordinary Course of Business
On July 9, 2012, Judge Peter J. Walsh of the United States Bankruptcy Court for the District of Delaware issued a memorandum opinion (the “Opinion“), in the Blitz…
Continue Reading Delaware Bankruptcy Court Finds Bonus Plan Was Created in the Ordinary Course of Business
Decision in Six Flags Bankruptcy Addresses Sufficiency of Pleadings Under Fed.R.Civ.P. 12(b)(6)
Introduction
Recently, the Delaware Bankruptcy Court in the Six Flags bankruptcy issued a decision addressing whether an adversary complaint alleged facts sufficient to overcome a motion to dismiss. The Court’s…
Continue Reading Decision in Six Flags Bankruptcy Addresses Sufficiency of Pleadings Under Fed.R.Civ.P. 12(b)(6)
The Common Interest Privilege
Below is a post from Michael Temin, senior counsel with Fox Rothschild. Michael’s post looks at a recent decision by Judge Sontchi in the Leslie Controls bankruptcy.
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A discovery dispute gave the bankruptcy court an opportunity to rule on the common interest privilege which, the court said, has completely replaced the joint defense privilege for information sharing among clients with different attorneys, citing In re Teleglobe Communications Corp., 493 F.3d 345, 364 n. 20 (3d Cir. 2007). Leslie Controls, Inc., Case No. 10-12199 (Bankr. D. Del. 9/21/10)(Sontchi, B.J.).
The question presented was whether privileged communications between the debtor and its counsel which were shared pre-petition with the ad hoc committee of asbestos plaintiffs and the proposed future claimants’ representative remained protected from discovery.
Decision in Qimonda Bankruptcy Looks at Whether a Conversion Claim is Entitled to Administrative Priority
Introduction
On August 3, 2010, Judge Mary F. Walrath of the United States Bankruptcy Court for the District of Delaware issued an opinion in the Qimonda bankruptcy addressing whether Google…
Continue Reading Decision in Qimonda Bankruptcy Looks at Whether a Conversion Claim is Entitled to Administrative Priority