February 06, 2025

No Second Restructuring of the Same Debt in a Different Venue

Delaware judge wouldn’t allow a chapter 11 debtor to restructure the same secured debt a second time in a different venue.

3rd Circuit, Delaware

February 05, 2025

‘Evergreen’ Retainers Are Ok Only in ‘Exceptional’ Sub V Cases, Judge Gunn Says

Washington, D.C.’s Judge Gunn describes the procedures to employ for approval and operation of an ‘evergreen’ retainer in chapter 11.

D.C. Circuit

February 04, 2025

Barton Halted Third Parties from Suing in an Allegedly Better Forum

When third parties sued a trust created by a confirmed chapter 11 plan, Judge Garrity declined to invent any new exceptions to the Barton doctrine.

2nd Circuit, New York, New York Southern District

February 03, 2025

A Disguised Loan Agreement Didn’t Create a ‘Fair Ground of Doubt’ Under Taggart

The Fifth Circuit undertook a legal analysis of a complex loan agreement to decide there was no ‘fair ground of doubt’ under Taggart that the lender was violating the discharge injunction.

5th Circuit

January 31, 2025

A Good Faith Objection to a Sale Cannot Be Raised the First Time on Appeal

The existence of a competing bidder does not put the buyer on notice of an ‘adverse interest’ to avoid dismissal for mootness under Section 363(m), the Sixth Circuit BAP says.

6th Circuit

January 30, 2025

In ‘363’ Sales, Three Courts Say Purdue Doesn’t Bar Injunctions Protecting Buyers

For a sale ‘free and clear,’ nondebtors can be enjoined from suing.

4th Circuit, Virginia, Virginia Eastern District

January 27, 2025

Without Levy, a Recorded Judgment Lien Is Unperfected in Some States

In New Jersey, a trustee’s hypothetical judicial lien has priority over a judgment lien if the judgment lienholder has not made a levy on the property.

3rd Circuit, New Jersey

January 24, 2025

Companies Can Be ‘Bankruptcy Remote,’ if Properly Done

Bankruptcy Judge David Cleary wrote a manual on how a company can be ‘bankruptcy remote’ without violating public policy.

7th Circuit, Illinois, Illinois Northern District

January 23, 2025

Fourth Circuit Upholds a $31 Million Default Judgment for Discovery Abuses

Long Island’s Judge Grossman warns lawyers that they may be paid nothing if they file chapter 11 cases just to delay a secured creditor, with no legitimate strategy for selling the property, refinancing or confirming a plan.

4th Circuit

January 22, 2025

Denial of $21 Million in Fees for Boy Scouts Ad Hoc Committee Upheld on Appeal

Delaware district court rules that debtors and trustees alone have standing to propose spending estate money outside of the ‘ordinary course.’

3rd Circuit, Delaware