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ABI Journal

April 10, 2025

Foreign Main Recognition in Chapter 15 Is Easy When No One Objects

Because all affected creditors were unanimous in support, Judge Michael Wiles didn’t agonize over whether the debtor actually had its center of main interests in the U.K.

2nd Circuit, New York, New York Southern District

April 09, 2025

Texas Courts Are Split on Ignoring Nonvoting Classes in Confirming a Sub V Plan

A bankruptcy judge in San Antonio disagreed with two bankruptcy judges in Houston by holding that a nonvoting class is equivalent to rejecting a plan in Subchapter V of chapter 11.

5th Circuit, Texas, Texas Southern District

April 04, 2025

Fifth Circuit Says Lessors Are ‘Known’ Creditors Entitled to Actual Notice

Circuit court upholds Bankruptcy Judge Jernigan: Notice by publication doesn’t discharge claims from a lease that rode through chapter 11 or was assumed.

5th Circuit

April 03, 2025

Third J&J Filing Dismissed on Grounds Different from the First Two Dismissals

Houston’s Bankruptcy Judge Christopher Lopez decided that the newest plan by a Johnson & Johnson subsidiary didn’t qualify for nondebtor releases permissible in asbestos cases.

5th Circuit, Texas, Texas Southern District

April 01, 2025

Priority Wage Claims Paid After Filing Are Counted Toward the Sub V Debt Cap

Wage claims and claims of critical vendors paid under ‘first day orders’ are counted toward the Subchapter V debt cap that’s rising on April 1 to about $3.4 million.

5th Circuit, Texas, Texas Southern District

March 31, 2025

Denver Judge Sides with the Circuits: Nondischargeability Infects Subchapter V

Bankruptcy judges continue to disagree on whether debts of corporations with cramdown plans in Subchapter V can have nondischargeable debts.

10th Circuit, Colorado

March 27, 2025

Supreme Court Holds: § 106(a) Doesn’t Waive Sovereign Immunity for § 544(b) Suits

In an 8-1 opinion, the Supreme Court holds that the waiver of sovereign immunity under Section 106(a) does not extend to suits brought by a trustee under state law standing in the shoes of an actual creditor.

Supreme Court

March 24, 2025

Another Fifth Circuit Humdinger: This Time, Limiting Gatekeeping

Picking up where Serta Simmons left off, the Fifth Circuit nixes another creative chapter 11 plan.

5th Circuit

March 21, 2025

Courts Divided on Broad or Narrow Grounds for Transferring Venue Under Section 1412

Some courts don’t transfer venue under 28 U.S.C. § 1412 if the claims are only ‘related to’ the bankruptcy and don’t arise in the bankruptcy case or arise under the Bankruptcy Code.

2nd Circuit, New York, New York Western District

March 19, 2025

Arbitration in Bankruptcy Isn’t All or Nothing, Judge David Cleary Says

Chicago’s Judge David Cleary called for post-confirmation arbitration of claims between the debtor and a creditor, but no arbitration for the creditor’s defenses, raising questions of bankruptcy law.

7th Circuit, Illinois, Illinois Northern District