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ABI Journal

November 10, 2021

Eleventh Circuit Differentiates the Two Standards for Approval of Non-Debtor Releases

The Eleventh Circuit has two standards for non-debtor releases: One for free-standing settlements and another for releases engrafted into chapter 11 reorganization plans

11th Circuit

October 15, 2021

Supreme Court Update: Equitable Mootness Not Ready for Prime Time

An arbitration case to be argued in November may inform bankruptcy courts whether they must enforce arbitration agreements.

Supreme Court

October 08, 2021

Supreme Court Likely to Tackle 2018 U.S. Trustee Fee Increase

The circuits are now split 2/2 on whether the 2018 increase in U.S. Trustee fees violated the Bankruptcy Clause because the increase didn’t apply immediately in bankruptcy administrator districts.

10th Circuit

October 05, 2021

Surety Bonds Aren’t Executory Contract and Can’t Be Assumed, District Judge Says

An irrevocable surety bond isn’t executory because it gives the bonding company no further obligations to the debtor.

5th Circuit, Louisiana

September 29, 2021

Objections to Priority Claims May Follow Confirmation of a Chapter 13 Plan

Confirming a chapter 13 plan on the assumption that a claim was entitled to priority didn’t bar the debtors from later objecting to the priority of the claim.

7th Circuit, Wisconsin, Wisconsin Eastern District

September 27, 2021

Issue and Claim Preclusion Didn’t Bar Challenging a Lien Previously Considered Valid

Newly applicable law permitted a chapter 13 debtor to cram down a lien that the debtor previously had considered to be valid.

3rd Circuit, Delaware

September 22, 2021

Third Circuit Makes More Rules on the Proper Scope of Asbestos Channeling Injunctions

The Third Circuit made more rules to decide whether an insurance company can be insulated from failure-to-warn claims by the channeling injunction in a chapter 11 ‘asbestos’ plan.

3rd Circuit

September 17, 2021

Affirmance Shows that Merit Management Has Been Gutted in the Second Circuit

Properly structuring a leveraged refinancing in the Second Circuit can avoid attack as a fraudulent transfer despite the Supreme Court’s effort at narrowing the ‘safe harbor.’

2nd Circuit, New York, New York Southern District

September 15, 2021

Appeal from a ‘PPP’ Loan Dismissed as Equitably Moot

Would Section 364(c) validate a “PPP” loan even if an order compelling the SBA to make the loan was reversed on appeal?

9th Circuit, Arizona

September 14, 2021

Chapter 13 Debtor Keeps a Whopping Increase in the Value of a Home

On a question where the courts are split, a New Jersey bankruptcy judge allowed the chapter 13 debtor to retain a $100,000 increase in value when he sold his home.

3rd Circuit, New Jersey