The ‘attenuated possibility of insolvency’ in the future does not establish ‘financial distress,’ Circuit Judge Ambro said, interpreting his own prior opinion.
Seeking attorneys’ fees from the debtor for a postpetition civil rights violation does not by itself make a postpetition lawsuit subject to the automatic stay.
Bankruptcy Judges Wiles in New York decided that insiders were not entitled to releases under Section 503(c), but not for the reasons contained in Purdue.
After Purdue, two bankruptcy judges now say that preliminary injunctions protecting nondebtors are permissible to foster successful chapter 11 reorganizations.
In the first decision on the topic after Purdue, Delaware’s Judge Goldblatt denied the debtor’s motion for a preliminary injunction to stop a lawsuit against nondebtors.
A decision by a district judge in Idaho may or may not be irreconcilable with a Ninth Circuit BAP decision that a finding of eligibility for Sub V is interlocutory and not appealable.
