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ABI Journal

January 04, 2023

It Wasn’t a Good Idea for 3M Corp. to Call Its Multidistrict Litigation a ‘Failure’

District judge remonstrates a solvent parent company for seeking the protections of bankruptcy without filing chapter 11 itself.

11th Circuit, Florida, Florida Northern District

January 03, 2023

Claims Trader Criticized in New York for an Unauthorized PACER Filing

A court filing by a claims trader was stricken from the docket because it contained judges’ direct email addresses.

2nd Circuit, New York, New York Southern District

December 29, 2022

Third Circuit Upholds Draconian Sanctions for Section 327 Nondisclosure

An opinion by Thomas Ambro shows how the Third Circuit won’t cut any slack for nonbankruptcy lawyers when it comes to retention disclosure.

3rd Circuit

December 21, 2022

Failure to Exercise a Purchase Option Is Not a Transfer, Third Circuit Says

The failure to convert a contingent interest into ownership is not a transfer that could be avoided as a fraudulent transfer.

3rd Circuit

December 20, 2022

Arguments Both Ways, Power to De-Designate from Subchapter V Left Undecided

Although deposed as debtor in possession, the Subchapter V debtor retains the sole power to file a chapter 11 plan.

3rd Circuit, Delaware

December 19, 2022

Second Circuit: Unimpaired, Unsecured Creditors Don’t Get Post-Petition Interest

There’s no circuit split on post-petition interest, because the Second Circuit agreed with the Third, Fifth and Ninth Circuits.

2nd Circuit

December 15, 2022

Like Willful Violations, Technical Stay Violations Are Void, Not Just Voidable

California bankruptcy judge doubts the Ninth Circuit will adopt the BAP’s dicta by holding that technical stay violations are only voidable, not void.

9th Circuit, California, California Eastern District

December 13, 2022

A DIP’s Lawyer Can Later Become Adverse to a Chapter 11 Liquidating Trust

Judge David Thuma explains why a chapter 11 debtor in possession and a subsequent liquidating trust are different clients for the purpose of a conflict analysis, at least when the committee has confirmed a liquidating plan.

10th Circuit, New Mexico

December 09, 2022

Third Circuit Importuned to Rule on Survival of the Solvent-Debtor Exception

Sticking to her guns, Bankruptcy Judge Mary Walrath rules that the solvent-debtor exception was abrogated by the adoption of the Bankruptcy Code, but certifies a direct appeal to the Court of Appeals.

3rd Circuit, Delaware

December 08, 2022

Bartenwerfer Argument Invites the Supreme Court to Depart from ‘Plain Meaning’

Will the Supreme Court add words to Section 523(a)(2)(A) to yield a result that the justices find more palatable?

Supreme Court