In the case of Avion Funding v. GFS Industries, the Fifth Circuit held that corporate debtors that elect to proceed under Subchapter V of Chapter 11 are, pursuant to Section 1192 of the Bankruptcy Code, subject to the discharge exceptions set forth in Section 523 of the Bankruptcy Code.
Although not always straightforward or consistent, federal and state laws regarding the recovery of fraudulent conveyances are well developed. However, when the transaction flows through several transferees, the analysis can quickly become complicated. In a recent decision, Third Circuit employed such an analysis and ordered the unwinding of a transaction involving transfers which passed through multiple related parties.
The LJN Quarterly Update highlights some of the articles from the nine LJN Newsletters titles over the quarter. Articles include in-depth analysis and insights from lawyers and other practice area experts.
The U.S. Trustee has recently taken the position that GUC Trusts (disbursements made by creditor trusts formed under bankruptcy plans) should be required to pay fees on account of their own disbursements to creditors. The outcomes in three recent bankruptcy cases highlight different approaches to addressing the U.S. Trustee's argument: closing bankruptcy cases early, deferring the issue to a later date, or focusing on the distinction between contingent and non-contingent assets.
Appellate courts are split on whether to review a bankruptcy court's denial of a motion to dismiss an entire case. Two district judges within the past few months, hearing appeals from the bankruptcy court, have reached contrary results that underline the split among the nation's courts of appeals.
Class action notice programs in the settlement context are not immune from fraud. Class counsel has a fiduciary duty to protect the best interests of the class, therefore protecting notice programs and the effectiveness of a digital advertising campaign is critical.
The Supreme Court's holding ensures that insurers who have long been silenced in Chapter 11 proceedings will now be heard. It is also a shot across the bow for two other judge-made, atextual doctrines that bar consideration of the merits in Chapter 11 appeals.
With a growing leniency in denying motions to dismiss for asserted violations of the Controlled Substances Act and the anticipated rescheduling of cannabis, it appears that bankruptcy relief may become a viable option even for plant-touching and cannabis-related businesses.
Until now, a successful reorganization assumed the debtor could confirm a plan with nondebtor releases and injunctions based on less than full creditor consensus. Now that nonconsensual releases in Chapter 11 plans are no longer permitted, will debtors have a more difficult time obtaining a 105(a) injunction?
If a commercial landlord desires to request post-bankruptcy petition rent and enforcement of other terms of the lease, they should immediately make formal demand for rent and compliance
