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Texas Mineral Liens May Be Modified in a Subchapter V Cramdown Plan

A cramdown plan can reduce the collateral coverage for secured creditors.

Third Circuit’s Warning Shot to Senior Creditors in In re Tribune

Dec 2020

‘Disposable Income’ Must Be Carefully Defined to Preserve the Debtor’s Discharge

Judge Christopher Klein parses the burdens of proof on conversion, dismissal and right to a discharge for an individual in chapter 11.

Killing Two Birds with One Stone: BAP Denies Novel Attempt for § 364(d) Exit Financing in SARE Case, Rules Stay Relief Should Have Been Granted

Nov 2020

A Liquidating Plan Doesn’t Automatically Pass the Best Interests Test, BAP Says

Findings of fact to show satisfaction of the best interests test ordinarily should be numerical comparisons, Ninth Circuit BAP Says

A Credit Bid Doesn’t Cap the Value of a Secured Lender’s Collateral

Delaware district judge holds that the final bid at auction, not the lender’s last credit bid, fixes the value of the lender’s collateral.

Cramdown Doesn’t Require Strict Enforcement of Subordination, Third Circuit Says

Pragmatic opinion by Circuit Judge Ambro allows cramdown to achieve ‘rough justice.’

Cannabis in Bankruptcy

Tenth Circuit BAP Says that Section 364(d)(1) Can’t Be Used for Priming Lien in a Plan

In a SARE case, the BAP says that the bankruptcy court cannot deny a lift-stay motion without finding that confirmation is reasonably possible in a reasonable time.

The Small Business Reorganization Act of 2019