Govt. Claims/Sovereign Immunity

Supreme Court Hears Argument on Allowing a Trustee to Sue the IRS for Fraudulent Transfers

Most justices seemed inclined to believe that the waiver of sovereign immunity in Section 106(a) does not abrogate the “actual creditor” requirement in Section 544(b)(1).

Jackson Walker May Depose the U.S. Trustee in the Fee Dispute over Nondisclosure

The bankruptcy judge in Houston denied the U.S. Trustee’s motion to quash deposition subpoenas in the fight over disgorgement of fees for failure to disclose an allegedly close relationship between the judge and a firm lawyer.

A Tale of Sovereign Restructurings: Venezuela and the CITGO Saga

Discussion on the developments of Venezuela's indefinitely postponed external debt restructuring process and the individual execution efforts over the country’s most valuable assets in the US—CITGO’s network of downstream assets—in the context of the Crystallex litigation in Delaware. The session would highlight the tension between “first come / first served” principles guiding the current stream of individual enforcement / execution, and the creditor coordination features of a pure insolvency proceeding. The session will provide clarity on the status of the ongoing melee of court cases going after Venezuela's assets abroad, in the zoom-out context of the prospects for a broad, all-encompassing, debt restructuring process Creditor Suggested Speakers Roland Pettersson rpettersson@dra.com.ve D'Empaire

Supreme Court Round-Up

‘Preserved’ Liens Can Sometimes Be Worthless, Ninth Circuit Says

When a lien is undersecured, the avoided portion of the lien takes nothing through preservation until the unavoidable portion of the lien is paid in full.