Bankruptcy Judge Paul Baisier of Atlanta disagreed with Bankruptcy Judge Craig Goldblatt of Delaware about requiring creditors to vote before they are saddled with nondebtor releases in chapter 11 plans.
Bankruptcy Judge Paul Bonapfel differed with two judges in Houston by holding that a nonaccepting class in Subchapter V means that a plan must be confirmed in cramdown.
Although the Supreme Court will soon rule on the permissibility of nonconsensual releases, Bankruptcy Judge Sigler approved a plan with nondebtor releases under existing Eleventh Circuit precedent.
The bankruptcy court was accorded wide discretion in deciding how to treat a $5.2 million loan that was neither disclosed to nor approved by the bankruptcy court.
Magistrate judge decided that the regulatory power exception to the automatic stay allows the EEOC to proceed, but he stayed the suit by the former employee seeking damages.
Even if the two-year statute of limitations for avoidance actions has run, the trustee can still strip away the lender’s secured status in a claim objection.
