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Circuit Judge Thomas Ambro prohibits big companies from filing chapter 11 cases absent ‘financial distress.’

An opinion by Thomas Ambro shows how the Third Circuit won’t cut any slack for nonbankruptcy lawyers when it comes to retention disclosure.

The failure to convert a contingent interest into ownership is not a transfer that could be avoided as a fraudulent transfer.

The Third Circuit opinion by Thomas Ambro explained that the ‘close nexus’ test does not apply when a post-conformation dispute is ‘core’ or entails enforcing a court order.

Absent an ‘actual conflict,’ disqualification is not automatic, the Third Circuit says.

Although Section 1141(d)(1) sets a default rule only discharging claims that arose before confirmation, Circuit Judge Ambro says that a plan may alter the default rule and allow discharge of administrative claims arising after confirmation.

Circuit Judge Ambro generously interprets Katz to mean that ratification of the Constitution waived state sovereign immunity broadly for suits to augment a bankrupt estate.

The ‘Countryman’ definition of an executory contract allows a debtor sell a contract without curing a default if the non-debtor counterparty has no further material, unperformed obligations.

Pragmatic opinion by Circuit Judge Ambro allows cramdown to achieve ‘rough justice.’

A tenant with a rejected lease retains ‘recoupment’ rights in addition to the protections in Section 365(h).