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ABI Journal

August 14, 2025

No Jurisdiction over Post-Confirmation Breach of a Pre-Confirmation Contract

Not much caselaw on the bankruptcy court’s jurisdiction over breach of a contract made during a chapter 11 case when the breach occurred after confirmation.

Delaware

July 21, 2025

Paying a Post-Petition Retainer Without Advance Approval Was Ok

Approving a retainer after the fact was a sensible exercise of the court’s discretion when the new lawyer’s services were necessary to avoid dismissal of the Subchapter V case.

New York Northern District

June 24, 2025

BAP Upholds Confirmation of a Plan with No Trust for Future Asbestos Claimants

Ninth Circuit BAP confirmed a plan with no future creditors’ trust when the debtor claimed there were no future claims and no one was in court representing future claimants.

9th Circuit

June 12, 2025

No Stay Pending Appeal on Nondebtor Opt-Out Releases in a Chapter 11 Plan

The debtor agreed not to raise equitable mootness on an appeal only challenging nondebtor opt-out releases.

2nd Circuit, New York, New York Southern District

May 22, 2025

Two Courts Hold: Injunctions Are Ok to Protect Nondebtors for the Life of a Plan

Judge Meredith Grabill of New Orleans agreed with New York’s Judge Mastando that a Subchapter V plan can enjoin lawsuits against nondebtors for the life of a three-year plan.

5th Circuit, Louisiana, Louisiana Eastern District

May 13, 2025

A Chapter 11 Debtor May Sometimes Prosecute an Appeal After Conversion to Chapter 7

After conversion, the debtor was entitled to prosecute an appeal at the debtor’s expense when the appeal involved the debtor’s personal liability.

10th Circuit, New Mexico

May 02, 2025

Post-Petition or ‘Evergreen’ Retainers Are Permissible in Subchapter V, Judge Isicoff Says

A Sub V case was not of a ‘size or exceptional nature’ to justify a post-petition retainer when counsel could file interim fee applications.

11th Circuit, Florida, Florida Southern District

April 23, 2025

A Homeowners’ Association Is Not a ‘SARE’ and Is Eligible for Sub V of Chapter 11

A homeowners’ association is not a single asset real estate debtor because the HOA’s income doesn’t come from the common areas but from assessments paid by unit owners.

4th Circuit, North Carolina, North Carolina Eastern District

April 18, 2025

To Dismiss for ‘Loss or Diminution,’ the Focus Is on Losses After Filing, BAP Says

Losses before filing or during prior aborted reorganizations do not control dismissal of a new reorganization for ‘continuing loss or diminution,’ First Circuit BAP says.

1st Circuit

April 16, 2025

In Sub V, No Compensation for a Rehearing Motion Contrary to Circuit Authority

After the court had denied contract assumption, there was no compensation for keeping assumption alive pending appeal.

9th Circuit, California, California Eastern District