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ABI Journal

August 09, 2023

Till Doesn’t Require Starting with the Prime Rate, Eighth Circuit Says

The Treasury rate and prime rate are both proper starting points for pegging post-petition interest rates, but starting with Treasurys requires a larger risk premium.

8th Circuit

July 27, 2023

All Future Liability on a Lease Counted for Subchapter V Eligibility

Future liability on a lease was counted as a liquidated, noncontingent debt in calculating whether the Subchapter V debtor had more than $7.5 million in debt.

4th Circuit, Virginia, Virginia Eastern District

July 11, 2023

Ninth Circuit BAP Holds that Debts of Corporate Sub V Debtors Can’t Be Nondischargeable

Disputing the Fourth Circuit line by line and raising the possibility of a circuit split, the BAP and six bankruptcy courts have held that there’s no such thing as nondischargeability for corporate Sub V debtors.

9th Circuit

June 29, 2023

Eligibility for Subchapter V Is Liberal, but Not Wide Open

Courts are split on whether the debt providing eligibility for Sub V must have arisen from a business that was active on the filing date.

2nd Circuit, New York, New York Northern District

June 01, 2023

Courts Split on Plan Amendments Requiring Substantial, Unanticipated Changes

Eighth Circuit BAP ‘at a minimum’ requires substantial changes in financial condition for a debtor to modify a confirmed chapter 12 plan.

8th Circuit

May 23, 2023

Bankruptcy Judges Agree: Later Developments Don’t Undo Subchapter V Eligibility

The $7.5 million debt cap for Subchapter V doesn’t include the debt of affiliates who file later.

4th Circuit, Virginia, Virginia Western District

May 11, 2023

Student Loans Didn’t Qualify as Commercial Debt for Sub V Eligibility

The business debt necessary to qualify for Subchapter V need not to have arisen from the debtor’s business at the time of filing, Bankruptcy Judge Meier says.

9th Circuit, Idaho

April 20, 2023

Another Court Holds that Debts of Corporate Sub V Debtors Can’t Be Nondischargeable

Contrary to the Fourth Circuit, five bankruptcy courts have now held there’s no such thing as nondischargeability for corporate Sub V debtors. The question is now before the Fifth Circuit.

11th Circuit, Florida, Florida Middle District

April 07, 2023

Later Developments Don’t Undo Subchapter V Eligibility, Houston Judge Says

In the Alex Jones corporate Subchapter V case, Bankruptcy Judge Christopher Lopez said that the later chapter 11 filing by Jones himself, with about $1.5 billion in debt, didn’t kick the corporate debtor out of Subchapter V and into ‘ordinary’ chapter 11.

5th Circuit, Texas, Texas Southern District

March 13, 2023

It’s Not Easy for a Lender to Block an LLC from Filing Bankruptcy

A small business debtor must consent for a case to be converted to Subchapter V, Judge Robert Jones says.

5th Circuit, Texas, Texas Northern District