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

November 30, 2022

Security Interests Are Assignments of Accounts Receivable, New York High Court Says

Once an account debtor is notified to pay the lender, not paying an account receivable to the lender can mean that the account debtor pays twice.

2nd Circuit, New York

October 31, 2022

‘Economic Unit Approach’ Best Fixes the Size of a ‘Household,’ Judge Larson Says

The IRS and Census methods for determining the size of a ‘household’ undercount or overcount economic realities, judge says.

5th Circuit, Texas, Texas Northern District

October 21, 2022

Second Circuit Says Orderly Liquidation Value Is Proper for a Retailer in Chapter 11

The Second Circuit adapts Rash to value the lender’s collateral in chapter 11 where there was a going-concern sale.

2nd Circuit

October 07, 2022

Abbreviating the Debtor’s Name on a UCC-1 Made the Security Interest Unperfected

Because Florida filing offices do not use ‘standard search logic,’ a financing statement must use the debtor’s precise, unabbreviated legal name.

11th Circuit

September 30, 2022

Although It Paid Creditors in Full, Eleventh Circuit Subordinates an Unauthorized Loan

Eleventh Circuit gives the bankruptcy judge wide discretion in subordinating debts and denying retroactive approval of loans.

11th Circuit

September 22, 2022

The Pandemic Was No Reason for Raising an Investment Banker’s Cap on a Fixed Fee

The length and the effects of the pandemic were capable of being ‘anticipated’ and therefore provide no reason for modifying a fixed fee under Section 328(a).

2nd Circuit, New York, New York Southern District

September 15, 2022

Second Circuit Definitively Defines ‘Inquiry Notice’ Under New York Law

Saving Revlon’s bank $500 million, the Second Circuit holds that the law of restitution allows a bank to recover payments made mistakenly when the recipient had no right to receive the payment.

2nd Circuit

July 11, 2022

Delaware Judge Approves ‘Uptier’ Financing that Involuntarily Subordinated Debt

Bankruptcy Judge Craig T. Goldblatt declined to interpret an indenture’s ratable treatment clause as anti-subordination in disguise.

3rd Circuit, Delaware

May 06, 2022

It’s Not Easy to Set Aside Releases for Fraud, Judge Whitman Holt Says

To settle with a trustee, a creditor is not required to volunteer damaging information.

9th Circuit, Montana