Plan Confirmation

Oversecured Creditor Granted ‘Default’ Interest on a Loan Purchased at Discount

District judge in Connecticut upheld an award of ‘default’ interest, even though the fully secured lender had opposed the chapter 11 process and resisted the use of its cash collateral.

Revlon Says: Creditors Lack Standing to Assert Claims of ‘General Interest to the Estate’

A creditor with ‘derivative’ claims based on preference or fraudulent transfer can’t convert them to ‘direct’ claims by asking for equitable relief.

Highland Capital Makes Law Again, This Time on Bankruptcy Appellate Standing

The ‘possibility of harm’ won’t confer bankruptcy appellate standing, the Fifth Circuit says.

‘Gatekeeping’ in the Fifth Circuit May Be Broader than Exculpations

Bankruptcy Judge Jernigan interprets the Fifth Circuit’s Highland Capital opinion to mean that gatekeeping protections are not limited to parties entitled to exculpation in the Fifth Circuit.

Fourth Circuit Says an Insurer Has No Right to Negotiate an ‘Asbestos’ Plan

The Fourth Circuit wrote a scholarly (and dense) opinion differentiating among bankruptcy standing, bankruptcy appellate standing and constitutional standing.

April 2023

April 2023

Sub V Plan Can Require Automatic Increases Based on Actual Disposable Income

A district judge in Florida upheld a Subchapter V plan that required automatic increases in payments to unsecured creditors based on actual disposable income.