New York Southern District

Fraudulent Transfer Law Doesn’t Victimize Innocent Parties, Judge Wiles Says

Ownership of a bank account isn’t enough by itself to make the account holder the initial transferee of a fraudulent transfer.

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New York Judge Nixes $2.45 Billion in DIP Financing as a Sub Rosa Plan

Even though the price and terms were ‘entirely fair,’ Bankruptcy Judge Garrity disapproved DIP financing that would have locked in the right of controlling shareholders to purchase new stock at a 20% discount.

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Rejection Didn’t Rescind Sale of Future Credit Card Receivables, New York Judge Says

Bankruptcy Judge Glenn hints that the lenders and the debtor should mediate tough questions about the enforceability of a $150 million ‘sale’ of future credit card receivables.

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Student Loan Servicer Sanctioned $378,000 for Civil Contempt by New York Judge

Bankruptcy Judge Martin Glenn imposed civil contempt sanctions for ignoring court orders over five years.

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No ‘Core’ Jurisdiction to Protect Nondebtors with Injunctions, N.Y. District Judge Says

New York district judge differs with the Third Circuit on a bankruptcy court’s constitutional power to issue nondebtor, third-party releases.

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Using a Casino’s ATM Makes the Casino the Initial Transferee, Not a ‘Mere Conduit’

New York judge gives casinos the responsibility for assuring that a gambler’s use of a corporate ATM card is not a fraudulent transfer.

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Fines for Defrauding Consumers Are Dischargeable in a Corporate Chapter 11 Plan

Courts are divided on discharging fines in a corporate chapter 11 case when the government itself was not defrauded.

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No Contempt for the IRS on Discharge Without Exhaustion of Administrative Remedies

Is Taggart just a defense that can be waived, or must a debtor plead and prove ‘no objectively reasonable basis’ in a motion for contempt of discharge?

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