New York Court Holds: Claims for Electricity Don’t Get Priority Under Section 503(b)(9)
Courts are divided on whether electricity supplied within 20 days of bankruptcy gives rise to an administrative priority claim.
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Section 546(g)'s Safe Harbor Doesn’t Apply in an Assignment for the Benefit of Creditors
A federal district judge in New York holds that the safe harbor in Section 546(g) doesn’t preempt state fraudulent transfer laws.
Lack of Reliance on Representation Isn’t a Defense to a Constructive Fraudulent Transfer
Damages for a constructively fraudulent transfer were the difference between what the buyer paid and what the business was really worth, based on accurate income and expenses.
Second Circuit Holds: The Party to a Contract Alone May Assert a ‘Cure Claim’
Someone who is not a party to the contract being assumed can’t assert a cure claim, even though Section 365(b) doesn’t give the counterparty the sole right to demand a cure on assumption of an executory contract.
Second Circuit Won’t Vacate the Stay Pending Appeal from Voyager’s Confirmation Order
A terse Second Circuit order seems to mean that a stay of a confirmation order pending appeal granted in district court can’t be appealed to the circuit, at least when the appeal is being expedited.
Rebuffed in Bankruptcy Court, the Government Wins a Stay of Voyager’s Confirmation
The U.S. Attorney argued in district court that the Voyager plan would bar the government from enforcing federal regulations and criminal laws.
Proceeds from Post-Petition Sales Aren’t to Be Turned Over to the Chapter 13 Trustee
Before confirmation, district judge says that a chapter 13 debtor is only required to turn over disposable income to a trustee, not proceeds from a post-petition sale of property.
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.
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.
Converting a Foreign ‘Rescue’ to Liquidation Doesn’t Require a New Chapter 15 Petition
If there’s an appeal, Bankruptcy Judge Garrity told the district judge all there is to know about chapter 15.