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ABI Journal

3rd Circuit

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.

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.

Delaware Judge Says When Prejudgment Asset Freezes Are Ok Under Grupo Mexicano

If you want a prejudgment asset freeze, ask for equitable relief and the recovery of specific property, Judge Goldblatt says.

Third Circuit Reverses and Dismisses J&J’s ‘Baby Powder’ Chapter 11 Case

Circuit Judge Thomas Ambro prohibits big companies from filing chapter 11 cases absent ‘financial distress.’

Third Circuit Upholds Draconian Sanctions for Section 327 Nondisclosure

An opinion by Thomas Ambro shows how the Third Circuit won’t cut any slack for nonbankruptcy lawyers when it comes to retention disclosure.

Failure to Exercise a Purchase Option Is Not a Transfer, Third Circuit Says

The failure to convert a contingent interest into ownership is not a transfer that could be avoided as a fraudulent transfer.

Arguments Both Ways, Power to De-Designate from Subchapter V Left Undecided

Although deposed as debtor in possession, the Subchapter V debtor retains the sole power to file a chapter 11 plan.

Third Circuit Importuned to Rule on Survival of the Solvent-Debtor Exception

Sticking to her guns, Bankruptcy Judge Mary Walrath rules that the solvent-debtor exception was abrogated by the adoption of the Bankruptcy Code, but certifies a direct appeal to the Court of Appeals.

A Two-Year Delay in Filing a Retention Application Resulted in Denial of Fees

Pittsburgh Bankruptcy Judge Gregory Taddonio says that lawyers must search in PACER before signing up a new client.

Court Halts States’ Police and Regulatory Suits against Non-Debtor Johnson & Johnson

In spreading the automatic stay, the bankruptcy court again employed the traditional analysis without recognition that the non-debtors are solvent.