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ABI Journal

May 01, 2018

Contract Wages for Executives Are Not Presumptively Allowable Postpetition, BAP Says

An executive with a rejected contract must prove value to have an allowable administrative claim, 9th Circuit BAP says.

9th Circuit

March 27, 2018

SIPA Bars General Unsecured Claims for Failure to Transfer Accounts Before Filing

The trustee for a bankrupt broker can ignore an individual customer’s request to transfer securities to a solvent broker and may instead transfer customer accounts in bulk.

2nd Circuit, New York, New York Southern District

March 20, 2018

Flip Clauses in Swaps Held Enforceable by District Judge in New York

For swaps, the Section 560 safe harbor overrides the anti-ipso facto provisions in the Bankruptcy Code.

2nd Circuit, New York, New York Southern District

March 16, 2018

Judge Harner Pens a Primer on the Elements of an Executory Contract

Unperformed obligations must be ‘material’ for a contract to be executory.

4th Circuit, Maryland

February 28, 2018

Delaware Judge Nixes the Notion of Implied Assumption of Executory Contracts

An asset purchaser cannot escape liability for appropriating the benefits of a contract that was not assumed and assigned.

3rd Circuit, Delaware

February 16, 2018

A Trademark License Rejection Case May End Up in the Supreme Court

A case on the ability of state law to take property out of the estate after filing may not go to the Supreme Court.

Supreme Court

February 12, 2018

Rejecting a Contract Precludes a Suit for Post-Petition Breach

Opinion ostensibly leaves a debtor without recourse for a supplier’s post-petition breach occurring before rejection.

5th Circuit

January 31, 2018

Alabama Judge Rejects Second Circuit’s Bankruptcy Act Opinion in Straus-Duparquet

There is no implied assumption of an executory employment contract under the Bankruptcy Code.

11th Circuit, Alabama, Alabama Northern District

January 18, 2018

Asset Sale Appeals Are Moot Even if There Is a Jevic Violation, First Circuit Says

Waiving the automatic stay and immediately closing a sale does not make Section 363(m) inapplicable.

1st Circuit

January 17, 2018

Properly Read, Seventh Circuit Opinion Does Not Undercut DIP Financing

Opinion does not mean that a DIP financing lien terminates when collateral is transferred.

7th Circuit