Fifth Circuit: MOAC Didn’t Weaken Section 363(m) on Statutory Mootness for Sales
The Fifth Circuit used Section 363(m) to avoid ruling on equitable mootness following consummation of a chapter 11 plan.
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Justice Department Says Sorrento Therapeutics Lawyers Falsified Texas Bankruptcy Filing
The U.S. Justice Department’s bankruptcy watchdog accused Sorrento Therapeutics lawyers of submitting false paperwork to justify the company’s chapter 11 filing in Houston, saying the mailbox location it cited as a principal place of business was created only hours ahead of its bankruptcy, WSJ Pro Bankruptcy reported. Kevin Epstein, the U.S. trustee for the Southern District of Texas, said that on Feb. 12, 2023, a lawyer for Sorrento rented a mailbox at a UPS in the Woodlands, a Houston suburb, on behalf of Scintilla Pharmaceuticals, a Sorrento subsidiary. Both Sorrento and Scintilla are based in San Diego. Scintilla wasn’t registered or licensed to do business in Texas, Epstein said. It had been dormant since about 2019, with no employees or business operations, and its only asset was a $60,000 bank balance that Sorrento had wired to it days before the bankruptcy filing, he said. Ten hours after establishing the mailbox, Scintilla filed its chapter 11 petition in the U.S. Bankruptcy Court in Houston stating that the mailbox was its principal place of business, while still listing its San Diego office as its mailing address, court records show. Sorrento, Scintilla’s parent company, then filed its own chapter 11 petition in Houston.
Rule 9006(b) Permits Bankruptcy Courts to Extend Statutes of Limitations
Extending statutes of limitations does not affect ‘substantive’ rights, thus the Rules Enabling Act does not preclude a rule from allowing an extension, Judge Julie Manning says.
Supreme Court Won’t Decide Whether ‘13’ Trustees Are Paid When Plans Aren’t Confirmed
Any day now, the Second Circuit could create a split of circuits importuning the Supreme Court to decide whether chapter 13 trustees are paid fees even if no plan is confirmed.
Shareholder Standing Scrutinized in a Case that Presages Truck Insurance
Can Section 327(c) be unconstitutional as applied if it deprives shareholders of standing when the estate might be solvent?
A Stipulated Dismissal Won’t Serve as the Basis for Res Judicata, a/k/a Claim Preclusion
A stipulated dismissal, even with prejudice, doesn’t mean that the claims were ‘actually litigated’ for the purpose of claim preclusion, the Sixth Circuit says.
May a Trustee Attach a Preference Defendant’s Property Before Judgment?
If the requisites for a preliminary injunction are met, a trustee might be able to freeze some of a preference defendant’s assets when a prejudgment attachment is not available.
Creditors Don’t Receive Estate Assets Recovered After the Last Chapter 13 Plan Payment
Absent a provision in the plan to the contrary, creditors aren’t given estate assets recovered after the final plan payment.
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Lyndel
Vargas
LVargas@chfirm.com
First Name
Lyndel
Last Name
Vargas
Email
LVargas@chfirm.com
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cavazos hendricks poirot, pc