February 27, 2024

Lack of Financial Distress Doesn’t Divest a Court of Subject Matter Jurisdiction

Two North Carolina Courts have held within two months that the Bankruptcy Clause doesn’t demand ‘financial distress’ to establish subject matter jurisdiction.

4th Circuit, North Carolina, North Carolina Western District

February 26, 2024

Fifth Circuit: MOAC Didn’t Weaken Section 363(m) on Statutory Mootness for Sales

The Fifth Circuit used Section 363(m) to avoid ruling on equitable mootness following consummation of a chapter 11 plan.

5th Circuit

February 22, 2024

Equitable Mootness Didn’t Stop the Court from Taking Away Stock Bought in a Plan

If a confirmation order is found not to be equitably moot on appeal, the debtor can’t raise equitable mootness again on remand.

11th Circuit, Florida, Florida Southern District

February 20, 2024

Shareholder Standing Scrutinized in a Case that Presages Truck Insurance

Can Section 327(c) be unconstitutional as applied if it deprives shareholders of standing when the estate might be solvent?

3rd Circuit, Delaware

February 15, 2024

Third Circuit Creates a Common Law Alternative to Chapter 15

Prof. Westbrook believes there is no common law alternative to chapter 15.

3rd Circuit

February 13, 2024

Eight Lower Courts Disagree with the Fourth Circuit on Sub V Nondischargeability

Nondischargeability for Sub V corporate debtors is sub judice in the Fifth Circuit.

7th Circuit, Illinois, Illinois Northern District

February 12, 2024

Bankruptcy Judge Chops a Fully Secured Lender’s Fee Request by 60%

A fully secured lender’s lawyer doesn’t have a ‘blank check’ to overwork a case, Bankruptcy Judge Kimberley Tyson says.

10th Circuit, Colorado

February 08, 2024

Another Judge Rules that Federal Bankruptcy Law Preempts Delaware Law on LLCs

Like Bankruptcy Judge Lopez in Houston, Delaware’s Judge Goldblatt decided that Delaware law governing LLCs can’t eliminate rights that are fundamental in federal bankruptcy law.

3rd Circuit, Delaware

February 07, 2024

Judge Rails Against Subchapter V Cases Taking as Long as ‘Regular’ Chapter 11s

An opinion by Denver’s Judge McNamara describes the four interpretations of Section 1189(b) and follows the meaning given to Section 1221.

10th Circuit, Colorado

February 05, 2024

Sitting on the Sidelines in a Chapter 11 Case Sometimes Doesn’t Pay Off

Knowledge of a chapter 11 case is enough to bind a creditor to the terms of a plan, even if the creditor hasn’t filed a claim, the Fifth Circuit says.

5th Circuit