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ABI Journal

Rochellel's Daily Wire

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, Delaware

March 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 Circuit

February 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, Delaware

January 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 Jersey

January 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, Delaware

January 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, Delaware

January 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 Jersey

January 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 Circuit

December 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, Delaware

December 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