April 17, 2025
Nondebtor Releases Are Still Permissible in Chapter 15, Delaware Judge Says
Foreign reorganizations with nondebtor releases are not ‘manifestly contrary’ to public policy after Purdue, according to Delaware’s Bankruptcy Judge Thomas Horan.
3rd Circuit, DelawareMarch 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 CircuitFebruary 06, 2025
No Second Restructuring of the Same Debt in a Different Venue
Delaware judge wouldn’t allow a chapter 11 debtor to restructure the same secured debt a second time in a different venue.
3rd Circuit, DelawareJanuary 27, 2025
Without Levy, a Recorded Judgment Lien Is Unperfected in Some States
In New Jersey, a trustee’s hypothetical judicial lien has priority over a judgment lien if the judgment lienholder has not made a levy on the property.
3rd Circuit, New JerseyJanuary 22, 2025
Denial of $21 Million in Fees for Boy Scouts Ad Hoc Committee Upheld on Appeal
Delaware district court rules that debtors and trustees alone have standing to propose spending estate money outside of the ‘ordinary course.’
3rd Circuit, DelawareJanuary 21, 2025
Applying Pressure on the Debtor Obviates the ‘Ordinary Course’ Defense to a Preference
The ‘ordinary course’ defense only applies to credit terms with healthy customers, not to debtors in financial distress, even if pressure is ordinary in the industry.
3rd Circuit, DelawareJanuary 17, 2025
The Client’s Business Judgment Held to Justify a ‘Discretionary’ Fee Award
A district court in New Jersey says that a discretionary fee award is neither a bonus nor an enhancement.
3rd Circuit, New JerseyJanuary 15, 2025
A Transfer from the Debtor to a Constructive Trust Isn’t a Transfer of Debtor’s Property
If there’s a constructive trust on property in the debtor’s name, the debtor was only the trustee of the constructive trust and had no legal interest in the property.
3rd CircuitDecember 30, 2024
Delaware Judge Writes a Treatise for Avoiding WARN Act Liability
Good faith and attention to detail should enable a failing business to avoid WARN Act liability.
3rd Circuit, DelawareDecember 20, 2024
Bankruptcy Has No General Exception to an Automatic Stay After Denial of Arbitration
A Delaware bankruptcy judge says there could be circumstances when automatic stays will not be enforced after the court has denied a motion to compel arbitration.
3rd Circuit, Delaware