February 07, 2024

Judge Rails Against Subchapter V Cases Taking as Long as ‘Regular’ Chapter 11s

An opinion by Denver’s Judge McNamara describes the four interpretations of Section 1189(b) and follows the meaning given to Section 1221.

10th Circuit, Colorado

January 29, 2024

Courts May Create Trust Accounts to Pay Sub V Trustees and Other Admin Expenses

The court can’t require a debtor to give a ‘retainer’ to a Subchapter V trustee, Judge Pearson says.

9th Circuit, Oregon

January 11, 2024

For ‘Sub V’ Eligibility, Count the Debt of Affiliates Liquidating in Chapter 7

Bankruptcy court disregards SEC regulations defining ‘voting securities’ in deciding whether a Subchapter V debtor has ‘affiliates’ in bankruptcy.

11th Circuit, Georgia, Georgia Northern District

December 08, 2023

Courts Are Split on Counting Future Rent Toward the $7.5 Million Debt Cap in Sub V

If future liability on unexpired leases and executory contracts is counted, many companies will be ineligible for Subchapter V of chapter 11.

2nd Circuit, New York, New York Southern District

November 15, 2023

Two Judges Agree: A Class with No Votes Isn’t Considered in Confirming a Sub V Plan

One month apart, two Houston bankruptcy judges held that a non-voting class is not deemed to have voted against a plan.

5th Circuit, Texas, Texas Southern District

October 30, 2023

Judge Faris Explains Why a Hypothetical Chapter 7 Sale Isn’t Necessarily ‘FMV’

A chapter 7 trustee’s obligation to sell can mean that chapter 7 prices don’t fit the ordinary definition of fair market value.

9th Circuit, Hawaii

October 24, 2023

In Sub V, a Class with No Votes Isn’t Considered in Confirming a Chapter 11 Plan

Former Bankruptcy Judge David R. Jones disagreed with a colleague, who had held that a non-voting class is considered as having voted against a plan.

5th Circuit, Texas, Texas Southern District

October 05, 2023

The Standard for Enlarging the Time to File a Subchapter V Plan

Judge Jacobvitz of New Mexico follows Judge Harner of Maryland in developing a standard for deciding whether a Subchapter V debtor may extend the time for filing a plan.

10th Circuit, New Mexico

September 26, 2023

Bankruptcy Judge Stong Penned a Compendium About Eligibility for Subchapter V

Another judge holds that dealing with debt from a defunct business satisfies the eligibility requirement for Subchapter V.

2nd Circuit, New York, New York Eastern District

August 18, 2023

State Law Requiring Exhaustion of Administrative Remedies Won’t Divest Jurisdiction

Neither a contract nor state law requiring exhaustion of administrative remedies can divest the bankruptcy court of ‘core’ jurisdiction, even after plan confirmation.

D.C. Circuit