March 31, 2020
Cramdown Must Not Put the Secured Creditor at Risk, Ninth Circuit BAP Says
Permanently reducing the claim by the appraised value without a backstop means the creditor isn’t receiving the ‘indubitable equivalent,’ BAP says.
9th CircuitMarch 30, 2020
Puerto Rico Bondholders Lose Another Appeal in the First Circuit
The First Circuit shows no inclination to allow creditors to bust out of the PROMESA restructuring of Puerto Rico’s debt.
1st CircuitMarch 27, 2020
Delaware District Court Upholds Discharge of Environmental Fines in Chapter 11
Environmental fines are discharged in chapter 11 because they do not result from pecuniary loss.
3rd Circuit, DelawareMarch 27, 2020
Release of a Subordinate Lien Held to Be ‘New Value’ for a Preference Defense
Eighth Circuit BAP crafts a preference rule protecting lenders in out-of-court workouts.
8th CircuitMarch 26, 2020
Ninth Circuit Creates a Legal Fiction to Uphold Recovery of an Unauthorized Transfer
Ninth Circuit assumed that transferred property must remain property of the estate after conversion from ‘13’ to ‘7’ before the chapter 7 trustee can avoid an unauthorized transfer under Section 549.
9th CircuitMarch 26, 2020
In the Minority, 8th Circuit BAP Disregards Equitable Considerations in Allowing Default Interest
As long as the rate is legal under state law, considerations of equity will not allow a court to disallow default interest to an oversecured creditor under Section 506(b).
8th CircuitMarch 25, 2020
Supreme Court Explains Sovereign Immunity in Bankruptcy Cases
The Supreme Court uses a copyright case to explain why the bankruptcy exception to states’ sovereign immunity is unique under the Constitution.
Supreme CourtMarch 24, 2020
Ninth Circuit BAP Applies Taggart to Violations of the Automatic Stay
Taggart left open the question of whether the ‘no objectively reasonable basis’ standard for discharge violations also applies to contempt of the automatic stay.
9th CircuitMarch 24, 2020
Lawyer for Madoff Customer Slapped with $57,347 Discovery Sanction
Calling the Madoff trustee a liar and basing a discovery motion on facts known to be false resulted in sanctions under Rule 37(a)(5)(B).
2nd Circuit, New York, New York Eastern DistrictMarch 23, 2020
Another Case Shows the Need to Provide Remedies for Discharge Violations
Discharge was violated, but sanctions are likely out of reach.
7th Circuit