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ABI Journal

3rd Circuit

Delaware Judge Disregards Committee Fee Cap if a Chapter 11 Plan Is Confirmed

Standard carveout only limits committee counsel fees if no chapter 11 plan is confirmed.

Impending Circuit Split on ‘Makewholes’ Prompts Rehearing Motion by Energy Future

Energy Future claims Third Circuit panel misinterpreted governing New York law.

‘Close Nexus’ Test Not Always Applicable for Post-Confirmation Jurisdiction

Rule 2004 may be used after confirmation, even if the plan does not reserve jurisdiction.

Insurance Companies Have Fewer Protections than Landlords and Aircraft Lessors

Absent special-interest legislation for bankruptcies, insurance companies remain in limbo.

Bankruptcy Powers Do Not Override Congressionally Mandated Internet Confidentiality

Third party’s emails are immune from discovery in bankruptcy, Judge Sontchi rules.

Skeptical Delaware Judge Refuses to Confirm Reorg Plan

Cash outlays to junior creditors at confirmation sink chapter 11 plan.

Third Circuit Splits with New York by Allowing Make-Whole Premiums in Chapter 11

Third Circuit says that New York bankruptcy court’s MPM decision was wrong.

Identity of Asbestos Claimants Disclosed Only to ‘Ferret Out’ Fraud

Even aggregate information about asbestos claims cannot be used for lobbying.

Fired Worker’s Entire Severance Claim Given Priority in Delaware by Judge Carey

Judge Carey distinguishes between administrative and priority claims for severance.

Arbitration Agreements Held Unenforceable in WARN Act Litigation

Delaware’s Judge Shannon protects workers’ rights, disagreeing with some circuit courts.