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ABI Journal

March 14, 2023

Oversecured Creditor Granted ‘Default’ Interest on a Loan Purchased at Discount

District judge in Connecticut upheld an award of ‘default’ interest, even though the fully secured lender had opposed the chapter 11 process and resisted the use of its cash collateral.

2nd Circuit, Connecticut

March 13, 2023

It’s Not Easy for a Lender to Block an LLC from Filing Bankruptcy

A small business debtor must consent for a case to be converted to Subchapter V, Judge Robert Jones says.

5th Circuit, Texas, Texas Northern District

March 08, 2023

Seventh Circuit Upholds $9.5 Million in Sanctions for Violating a Plan Injunction

When there was a knowing violation of injunctions in the plan and confirmation order, the Seventh Circuit said that the appeal bordered on frivolous.

7th Circuit

March 07, 2023

Revlon Says: Creditors Lack Standing to Assert Claims of ‘General Interest to the Estate’

A creditor with ‘derivative’ claims based on preference or fraudulent transfer can’t convert them to ‘direct’ claims by asking for equitable relief.

2nd Circuit, New York, New York Southern District

March 06, 2023

Highland Capital Makes Law Again, This Time on Bankruptcy Appellate Standing

The ‘possibility of harm’ won’t confer bankruptcy appellate standing, the Fifth Circuit says.

5th Circuit

March 02, 2023

‘Gatekeeping’ in the Fifth Circuit May Be Broader than Exculpations

Bankruptcy Judge Jernigan interprets the Fifth Circuit’s Highland Capital opinion to mean that gatekeeping protections are not limited to parties entitled to exculpation in the Fifth Circuit.

5th Circuit, Texas, Texas Northern District

March 01, 2023

First Circuit Writes a Treatise on the Elements of Judicial Estoppel

Disputed facts can defeat invocation of judicial estoppel on summary judgment.

1st Circuit

February 27, 2023

Fourth Circuit Says an Insurer Has No Right to Negotiate an ‘Asbestos’ Plan

The Fourth Circuit wrote a scholarly (and dense) opinion differentiating among bankruptcy standing, bankruptcy appellate standing and constitutional standing.

4th Circuit

February 23, 2023

Debts for a Partner’s Fraud Are Still Nondischargeable, the Supreme Court Says

The opinion by Justice Barrett largely bases the outcome on the use of the passive voice in Section 523(a)(2)(A).

Supreme Court

February 22, 2023

Eleventh Circuit Explains an Interlocutory Order Can Become ‘Final’ for an Appeal

Federal Rule 41(a)(1)(A) only permits voluntary dismissal of an entire action, not individual claims, the Eleventh Circuit says.

11th Circuit