Texas

The ‘Insured vs. Insured’ Exclusion in a D&O Policy Doesn’t Apply to a DIP

When a DIP sues a former officer, the bankruptcy ‘exception’ in a D&O policy provides coverage when the ‘insured vs. insured’ exclusion would otherwise deny coverage.

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Sub V Trustee May Be Discharged When the Debtor Makes Plan Payments

Bankruptcy Judge Larson administratively closed a Sub V case after substantial consummation.

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Texas Northern District

Houston Judge Confirms an ‘Opt-Out’ Plan with Nondebtor Releases

In the first opinion on the issue after Purdue, Bankruptcy Judge Christopher Lopez holds that Purdue did not change Fifth Circuit law where ‘hundreds’ of ‘opt-out’ plans have been confirmed with nondebtor releases.

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Payments Made with Insurance Nevertheless Were Preferences, District Judge Says

Payments from insurance must be properly structured to avoid preference liability.

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Three Years Is the ‘Default’ Duration for a Subchapter V Plan, Judge Robinson Says

The Code doesn’t contain any rules specifying when a Subchapter V plan should have a five-year duration rather than three years.

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Texas Western District

Sub V Trustee Lacks Standing to Pursue an Adversary Proceeding for the Debtor

Bankruptcy Judge Eduardo Rodriguez of Houston opined on the limited powers of a Subchapter V trustee.

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Sub V Plan Doesn’t Require Automatic Increases Based on Actual Disposable Income

Bankruptcy Judge Christopher Bradley disagreed with a district court in Florida that required a ‘true up’ if actual disposable income in Sub V exceeds projected disposable income.

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