March 13, 2025
Opt-Out Plan Confirmed with Impaired Creditors Almost Unanimous in Support
In the Spirit Airlines reorganization, no creditors with an economic interest had opposed confirmation of a plan with opt-out releases for nondebtors.
2nd Circuit, New York, New York Southern DistrictMarch 12, 2025
District Court Doesn’t Say Whether ‘Person Aggrieved’ Survived Truck Insurance
District court upholds an ‘opt-out’ chapter 11 plan with releases for nondebtors.
8th CircuitMarch 11, 2025
For Fraudulent Transfers, Retailers Needn’t Police Who Receives Value from the Purchase
Judge Peter Henderson declined to adopt an interpretation of Section 548 that would turn innocent retailers into recipients of fraudulent transfers when someone buys goods but turns the goods over to someone else.
7th Circuit, Illinois, Illinois Central DistrictMarch 10, 2025
Bankruptcy Judge Rejects a District Court’s Narrow View of Sales Free and Clear
New York’s Judge Philip Bentley interpreted Section 363(f)(5) to permit a sale free and clear whenever a creditor could conduct a foreclosure or a UCC sale.
2nd Circuit, New York, New York Southern DistrictMarch 07, 2025
Claim Isn’t Disallowed if the ‘Statute’ Lapses After the Claim Is Filed, Third Circuit Says
The Third Circuit upheld Bankruptcy Judge Goldblatt of Delaware where the answer was self-evident but there was no controlling authority.
3rd CircuitMarch 06, 2025
Student Loans for a Professional Degree Weren’t Business Debts to Qualify for Sub V
The Ninth Circuit didn’t completely close the door to a finding in another case that student loans for a professional degree could be business debts making the debtor eligible for Subchapter V of chapter 11.
9th CircuitMarch 05, 2025
New York Judge Devises a Flexible Remedy to Deal with Repeated Bad Faith Filings
New York’s Judge Philip Bentley and Prof. Robert Lawless urge Congress to adopt the ABI Commission’s recommendations for dealing with bad faith filings.
2nd Circuit, New York, New York Southern DistrictMarch 04, 2025
For an Individual Chapter 11 Debtor, the Usual Retention Rules Don’t Always Apply
When retention benefits the chapter 11 debtor individually but not the estate, Bankruptcy Judge Christopher Bradley believes that compensation is not subject to approval under Section 330.
5th Circuit, Texas, Texas Western DistrictMarch 03, 2025
Texaco’s 1988 Confirmation Didn’t Kill Environmental Suits Decades Later
New York’s Bankruptcy Judge David Jones reopened Texaco’s 1988 bankruptcy to ensure that state courts wouldn’t mistakenly decide that environmental claims were discharged
2nd Circuit, New York, New York Southern DistrictFebruary 28, 2025
Purdue Doesn’t Preclude Injunctions from Protecting Nondebtors for the Life of a Plan
New York’s Judge John Mastando saw no reason a Subchapter V plan couldn’t enjoin lawsuits against nondebtors for the life of a five-year plan.
2nd Circuit, New York, New York Southern District