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ABI Journal

Rochellel's Daily Wire

September 07, 2021

Chapter 11 Plans May Discharge Post-Confirmation ‘Admin’ Claims, Third Circuit Says

Although Section 1141(d)(1) sets a default rule only discharging claims that arose before confirmation, Circuit Judge Ambro says that a plan may alter the default rule and allow discharge of administrative claims arising after confirmation.

3rd Circuit

September 02, 2021

Bankruptcy Courts Aren’t Prohibited from Entering Mareva Injunctions

The Supreme Court’s Grupo Mexicano decision doesn’t bar a bankruptcy court from freezing a defendant’s assets prior to judgment in a fraud action, Judge Sontchi says.

3rd Circuit, Delaware

July 27, 2021

Critical Vendor Status Is No Defense to a Preference Claim

Critical vendor status is a defense to a preference claim only when the defendant was specifically named in an order, stipulation or agreement requiring full payment of the creditor’s prepetition claim, Judge Dorsey says.

3rd Circuit, Delaware

July 09, 2021

Amended Chapter 13 Plan Allowed to Cure Post-Petition Mortgage Defaults

Courts are split on whether a debtor may amend a chapter 13 plan to cure post-petition defaults on a principal residence.

3rd Circuit, New Jersey

July 07, 2021

Contingency Fees Under a Trust Indenture May Not Result in a Claim, Judge Shannon Says

A standard provision in a trust indenture meant no recovery for the indenture trustee’s attorneys.

3rd Circuit, Delaware

July 02, 2021

Sovereign Immunity Prevailed Because a Slot Machine License Isn’t ‘Property’

In Pennsylvania, a gaming license isn’t ‘property.’ It’s a revocable license that can’t be owned.

3rd Circuit

July 01, 2021

Judge Sontchi Cuts Off U.S. Trustee Fees on Confirmation of a Chapter 11 Plan

Closing a chapter 11 case after confirmation to avoid U.S. Trustee fees won’t be necessary if the ruling by Judge Sontchi holds up.

3rd Circuit, Delaware

June 09, 2021

Increasing Debtor’s Profit or Revenue Isn’t Required to Establish an ‘Admin’ Claim

An administrative creditor isn’t a ‘guarantor’ of the success of the project, Delaware’s Bankruptcy Judge Goldblatt says.

3rd Circuit, Delaware

June 08, 2021

Federal Common Law Doesn’t Define a Business Trust Eligible for Chapter 11

Recent Supreme Court authority supports the conclusion by Delaware’s Judge Sontchi that law from the jurisdiction of incorporation, not federal common law, determines what is or isn’t a business trust eligible for chapter 11.

3rd Circuit, Delaware

May 28, 2021

Third Circuit Finds Broad Waiver of Sovereign Immunity for Suits Augmenting the Estate

Circuit Judge Ambro generously interprets Katz to mean that ratification of the Constitution waived state sovereign immunity broadly for suits to augment a bankrupt estate.

3rd Circuit