When retention benefits the chapter 11 debtor individually but not the estate, Bankruptcy Judge Christopher Bradley believes that compensation is not subject to approval under Section 330.
An opinion by Bankruptcy Judge Carl L. Bucki might be read, incorrectly, to mean that Purdue precludes preliminary injunctions stopping suits against nondebtors.
After Purdue, two bankruptcy judges now say that preliminary injunctions protecting nondebtors are permissible to foster successful chapter 11 reorganizations.
In the first decision on the topic after Purdue, Delaware’s Judge Goldblatt denied the debtor’s motion for a preliminary injunction to stop a lawsuit against nondebtors.
The Third Circuit gave royalty owners a constructive trust over royalties improperly paid to secured creditors. The circuit court did not rule on remedy.
District judge in Connecticut upheld an award of ‘default’ interest, even though the fully secured lender had opposed the chapter 11 process and resisted the use of its cash collateral.