June 24, 2022
Delaware Supreme Court: No ‘Insolvency Exception’ for Asset Sales
Delaware corporations must have shareholder approval to sell all or substantially all assets outside of bankruptcy.
3rd Circuit, DelawareJune 23, 2022
Chapter 7 Debtors Have No Appellate Standing to Challenge a Short Sale, BAP Says
BAP doesn’t allow debtors to appeal when a trustee sells their home out from underneath them in a short sale.
9th CircuitJune 22, 2022
A Hotel Without Income Is ‘Single Asset Real Estate,’ District Judge Says
An operating hotel may not be single asset real estate, but an uncompleted hotel with no income is single asset real estate, according to a Los Angeles district judge.
9th Circuit, California, California Central DistrictJune 21, 2022
Judge Walrath Describes Due Diligence to Plead After the Amendment to Section 547(b)
The amendment to Section 547(b) does not require a preference complaint to explain why the defendant doesn’t have affirmative defenses, Judge Walrath says.
3rd Circuit, DelawareJune 17, 2022
Ninth Circuit Describes the Pleading and Proof for Converting from ‘11’ to ‘7’
With the statute silent, the Ninth Circuit makes rules for assets that go to the chapter 7 estate on conversion from chapter 11.
9th CircuitJune 16, 2022
Plan Amendment Barred When Just a Few Claims Had Been Paid After Confirmation
Substantial consummation under Section 1193(b) was defined by the bankruptcy court to mean commencement of distributions to some but not all creditor classes.
7th Circuit, Illinois, Illinois Northern DistrictJune 15, 2022
Supreme Court Won’t Rule on Remedies for Overpayments and Violation of Rule 3002.1
The Supreme Court on June 13 declined to hear two bankruptcy cases in the term to begin next October.
Supreme CourtJune 14, 2022
Published Notice Doesn’t Result in Discharge of Some Types of Lease Claims
Status as a ‘known’ or ‘unknown’ creditor misses the point when a lease was either assumed or rode through the chapter 11 case, Judge Jernigan says.
5th Circuit, Texas, Texas Northern DistrictJune 13, 2022
A Corporation Can’t Appeal an Order Converting Its Own Case to Chapter 7
Former managers of a corporation can appeal a conversion order in their own right, Tenth Circuit says.
10th CircuitJune 10, 2022
Corporate Debtors in Subchapter V Can’t Discharge Nondischargeable Debts, Circuit Says
Both individuals and corporations in subchapter V of chapter 11 are barred from discharging debts that are nondischargeable under Section 523(a).
4th Circuit