A Receiver May File a Chapter 9 Petition over City Officials’ Objections
The requirement in chapter 9 to negotiate in good faith before filing is satisfied if the parties are ‘simply too far apart,’ says Bankruptcy Judge Chan.
Limited Partnership Agreement Is an Estate Asset, Not an Executory Contract
Because a limited partner’s obligations were only ‘options,’ the partnership agreement was not an executory contract, Chief Judge Meier says.
State Exemption for Life Insurance Policies Under Attack in Texas
Bankruptcy Judges Gargotta and Davis both held that the amended Texas exemption statute exempts life insurance policies and their cash surrender values.
Oversecured Creditor Granted ‘Default’ Interest on a Loan Purchased at Discount
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.
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.
DocuSign Not Permitted Absent Existence of the Document with a ‘Wet’ Signature
As a general rule, counsel must show the existence of a document with a ‘wet’ signature to use an electronically signed version in court.
Dismissal Isn’t Mandatory if a New Filing Is Within 180 Days of a Voluntary Dismissal
Courts are split on whether Section 109(g)(2) mandates dismissal whenever an individual or family farmer refiles within 180 days, regardless of whether a lift-stay motion prompted dismissal of the first case.
Seventh Circuit Upholds $9.5 Million in Sanctions for Violating a Plan Injunction
When there was a knowing violation of injunctions in the plan and confirmation order, the Seventh Circuit said that the appeal bordered on frivolous.
Revlon Says: Creditors Lack Standing to Assert Claims of ‘General Interest to the Estate’
A creditor with ‘derivative’ claims based on preference or fraudulent transfer can’t convert them to ‘direct’ claims by asking for equitable relief.
Highland Capital Makes Law Again, This Time on Bankruptcy Appellate Standing
The ‘possibility of harm’ won’t confer bankruptcy appellate standing, the Fifth Circuit says.