July 30, 2024

Dismissal of Second J&J Chapter 11 Filing Upheld by Return Mail in the Circuit

The ‘attenuated possibility of insolvency’ in the future does not establish ‘financial distress,’ Circuit Judge Ambro said, interpreting his own prior opinion.

3rd Circuit

July 26, 2024

Enjoining a Prepetition Policy Doesn’t Violate the Automatic Stay, Fifth Circuit Says

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.

5th Circuit

July 25, 2024

Releases, a/k/a Exculpations, of Insiders Barred Under a Chapter 11 Plan

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.

3rd Circuit, New Jersey

July 23, 2024

Chicago’s Judge Cox Enjoins Suits Against Nondebtors, Distinguishing Purdue

After Purdue, two bankruptcy judges now say that preliminary injunctions protecting nondebtors are permissible to foster successful chapter 11 reorganizations.

7th Circuit, Illinois, Illinois Northern District

July 18, 2024

Delaware Judge Explains How to Obtain a PI Protecting Nondebtors After Purdue

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.

3rd Circuit, Delaware

July 17, 2024

Established Law Pointed Judge Lane Toward Dismissing Giuliani’s Chapter 11 Case

New York’s Judge Sean Lane saw no reason for forcing holders of a $148 million defamation judgment ‘to wait years’ for a ‘modest distribution.’

2nd Circuit, New York, New York Southern District

July 16, 2024

An Order Finding Ineligibility for Sub V Is a Final, Appealable Order

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.

9th Circuit, Idaho

July 15, 2024

Circuit Split May Deepen on Assuming a Franchise over the Franchisor’s Objection

Ohio’s Bankruptcy Judge Nami Khorrami sides with the minority on a circuit split that the Supreme Court ducked in 2009.

6th Circuit, Ohio, Ohio Southern District

July 12, 2024

Delaware Judge Pegs Low Values for Crypto Tokens in FTX Bankruptcy Case

The debtor’s prebankruptcy machinations to inflate the value of tokens resulted in low claim valuations in bankruptcy.

3rd Circuit, Delaware

July 11, 2024

Owning a Marijuana Business Doesn’t Disqualify the Owner from Being in Chapter 7

Bankruptcy Judge Montali didn’t toss an individual out of chapter 7 just because he owned two LLCs that sold marijuana at retail.

9th Circuit, California, California Northern District