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DJK Enterprises: Prepetition Waiver of Automatic Stay In Previously Negotiated Forbearance Is Unenforceable
A recent bankruptcy court decision has added its perspective to an increasingly divergent line of case law scrutinizing the enforceability of a debtor’s prepetition waiver of the automatic stay afforded to it by Section 362(a) of the Bankruptcy Code. In the case of In re DJK Enterprises, (Case No. 24-61026), the U.S. Bankruptcy Court for the Southern District of Illinois held that a debtor’s prepetition waiver of the automatic stay contained in a previously negotiated forbearance agreement was per se unenforceable.
Facts and Procedural History
In this case, the debtor, DJK Enterprises LLC, was the owner and operator of a full-service hotel and convention center. Those properties were encumbered by a $10.5 million mortgage securing a note in favor of St. Louis Bank who, in turn, assigned its claim to Effingham Asset Funding.
The DOJ's Corporate Enforcement Policy: One Year Later
The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.
The DOJ's New Parameters for Evaluating Corporate Compliance Programs
The parameters set forth in the DOJ's memorandum have implications not only for the government's evaluation of compliance programs in the context of criminal charging decisions, but also for how defense counsel structure their conference-room advocacy seeking declinations or lesser sanctions in both criminal and civil investigations.
Use of Deferred Prosecution Agreements In White Collar Investigations
This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.
Bankruptcy Sales: Finding a Diamond In the Rough
There is no efficient market for the sale of bankruptcy assets. Inefficient markets yield a transactional drag, potentially dampening the ability of debtors and trustees to maximize value for creditors. This article identifies ways in which investors may more easily discover bankruptcy asset sales.
A Lawyer's System for Active Reading
Active reading comprises many daily tasks lawyers engage in, including highlighting, annotating, note taking, comparing and searching texts. It demands more than flipping or turning pages.