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ABI Journal

February 21, 2023

Converting a Foreign ‘Rescue’ to Liquidation Doesn’t Require a New Chapter 15 Petition

If there’s an appeal, Bankruptcy Judge Garrity told the district judge all there is to know about chapter 15.

2nd Circuit, New York, New York Southern District

February 17, 2023

Sub V Plan Can Require Automatic Increases Based on Actual Disposable Income

A district judge in Florida upheld a Subchapter V plan that required automatic increases in payments to unsecured creditors based on actual disposable income.

11th Circuit, Florida, Florida Middle District

February 15, 2023

Nonseverability Won’t Make a Confirmation Appeal Equitably Moot in the Fifth Circuit

When it comes to overbroad exculpations and nondebtor releases, a nonseverability clause in a chapter 11 plan won’t invoke equitable mootness to dismiss an appeal from confirmation.

5th Circuit, Texas, Texas Southern District

February 13, 2023

Sixth Circuit: Nondebtor Releases Are Ok in Chapter 11 but Not in Receiverships

Bound by Dow Corning, which permitted nondebtor releases, the Sixth Circuit had to explain why the same releases are not permissible in equity receiverships.

6th Circuit

February 13, 2023

Preliminary Injunction Didn’t Render a Contract Nonexecutory

A preliminary injunction in state court didn’t invoke comity or Rooker-Feldman to bar the bankruptcy court from rejecting an executory contract.

2nd Circuit, New York, New York Southern District

February 09, 2023

Electric Power Held Not to Be Goods with a 20-Day Priority Under Section 503(b)(9)

An Oregon power company appears headed for the Ninth Circuit to decide whether electric power qualifies as “goods” to be accorded the 20-day priority.

9th Circuit, Oregon

February 08, 2023

For the Cap on Lease Rejection Claims, Judge in the SDNY Adopts the ‘Time Approach’

Bankruptcy Judge Michael Wiles differed with his colleagues who in previous years had employed the ‘time approach’ in calculating a landlord’s rejection damages under Section 502(b)(6).

2nd Circuit, New York, New York Southern District

February 03, 2023

Delaware Judge Says When Prejudgment Asset Freezes Are Ok Under Grupo Mexicano

If you want a prejudgment asset freeze, ask for equitable relief and the recovery of specific property, Judge Goldblatt says.

3rd Circuit, Delaware

February 02, 2023

Unlike the Eleventh Circuit, Barton Is Alive and Well in the Fifth Circuit

In a case irreconcilable with two recent opinions from the Eleventh Circuit, the Fifth Circuit invokes Barton to bar a lawsuit against a trustee after the bankruptcy case had been closed.

5th Circuit

February 01, 2023

A UCC Lien on ‘Accounts’ Won’t Attach to a Postpetition Sale of Real Property

Although a UCC lien on ‘accounts’ would attach outside of bankruptcy to proceeds from the sale of real property, Section 552(b) cuts off attachment if the sale occurs after filing

5th Circuit, Texas, Texas Southern District