Category Archives: Bankruptcy News
True Sale or Not - The Nature of the Factoring Agreement
Did you know… it has been argued that a factoring arrangement over invoices of a company could be challenged as a charge over book debts and thus is void against liquidators of the company unless registered under section 80 of the Companies Ordinance Read More… Continue reading
Bankruptcy Judge OKs Debtor-In-Possession Financing For Beyond Oblivion
NEW YORK – (Mealey's) A federal bankruptcy judge in New York on Feb. 16 approved $ 750,000 in debtor-in-possession (DIP) financing for the digital music startup Beyond Oblivion (In Re: Beyond Oblivion Inc., No. 12-10282, Chapter 11, S.D. N.Y. Bkcy.). Continue reading
7th Circuit: Debt Discharged Properly; Fee Award Not Valid Based On Evidence
CHICAGO – A panel of the Seventh Circuit U.S. Court of Appeals on Feb. 2 affirmed the dischargeability of a particular debt but reversed that part of a lower court ruling that awarded fees to the debtor related to the costs of defending a creditor's adversary action (Anthony Stelmokas v. Vytautas Kodzius, No. 11-3193, Chapter 7, 7th Cir.; 2012 U.S. App. LEXIS 2068). Full story on lexis.com Continue reading
4th Circuit: Case Brought By Debtor Company’s Officers Properly Dismissed
RICHMOND, Va. – A panel of the Fourth Circuit U.S. Court of Appeals on Feb. 9 ruled that a lawsuit brought by two former officers of a bankrupt company was properly dismissed because bankruptcy trustees and their counsel require protection against suits that are based on unfounded allegations, regardless of whether there is a claim that the alleged wrongdoing was intentional (James Mark McDaniel Jr., et al. v. John M. Blust, et al., No. 10-1776, Chapter 7, 4th.; U.S. App. LEXIS 2555). Full story on lexis.com Continue reading
4th Circuit: Lien On Debtor’s Property Void Under Bankruptcy Code
RICHMOND, Va. – A panel of the Fourth Circuit U.S. Court of Appeals on Feb. 10 affirmed a bankruptcy court's ruling that a trustee's lien on a debtor's property was void (Suntrust Bank v. Marc Macky v. John A. Northen [In Re: John G. McCormick], No. 10-2027, Chapter 13, 4th Cir.; 2012 U.S. App. LEXIS 2658). Full story on lexis.com Continue reading
10th Circuit: Debtor’s Claim For Improper Foreclosure Against Lender Fails
DENVER – A panel of the 10th Circuit U.S. Court of Appeals on Feb. 7 affirmed a district court and held that a debtor failed to state a claim against his lenders, which he had accused of violating state law when they foreclosed on his property (Dany L. Clementson v. Countrywide Financial Corporation, No. 11-1272, Chapter 7, 10th Cir.; 2012 U.S. App. LEXIS 2296). Full story on lexis.com Continue reading
Bankruptcy Judge: Class May Sue Debtor Only For Claims That Arose Post-Petition
NEW YORK – A federal bankruptcy judge in New York on Feb. 10 ruled that antitrust claimants who sued a company in Chapter 11 bankruptcy were not permitted to assert claims for incidents that allegedly occurred before the date the bankruptcy petition was filed (In Re: Lear Corporation, No. 09-14326, Chapter 11, S.D. N.Y. Bkcy.; 2012 Bankr. LEXIS 440). Full story on lexis.com Continue reading
9th Circuit: No Authority To Rule On Trustee’s Possession Of Creditors’ Documents
SAN FRANCISCO – A panel of the Ninth Circuit U.S. Court of Appeals on Feb. 9 said it lacked jurisdiction to rule on an appeal by creditors in a bankruptcy who contend that the trustee illegally possesses the creditors' sensitive company documents that were being held by the debtor prior to its bankruptcy petition (SS Farms LLC v. Bradley D. Sharp [In the Matter of SK Foods, et al.], No. 10-16153, Chapter 11, 9th Cir.). Full story on lexis.com Continue reading
11th Circuit: Insurance Claim Fails; Policy Did Not Cover Debtor’s Losses
ATLANTA – A panel of the 11th Circuit U.S. Court of Appeals on Feb. 7 affirmed a district court ruling that denied a debtor's insurance claim on grounds that the claim, which was filed for losses caused by employee fraud, was not covered by the policy (Jordan A. Lubin, et al v. Cincinnati Insurance Company, No. 11-10231, Chapter 7, 11th Cir.; 2012 U.S. App. LEXIS 2276). Full story on lexis.com Continue reading
9th Circuit: Bankruptcy Code Trumps Arbitration Proviso In Thorpe, Insurer’s Deal
SAN FRANCISCO – A federal bankruptcy court had the discretion to decline to enforce an arbitration provision in a settlement agreement between Thorpe Insulation Co. and one of its insurers because resolution of the insurer's claims for breach of the agreement was a core proceeding in Thorpe's Chapter 11 case and having an arbitrator decide the claims would conflict with the purposes of the U.S. Bankruptcy Code, the Ninth Circuit U.S. Court of Appeals held Jan. 30 in what it called an issue of first impression (Continental Insurance Company v. Thorpe Insulation Company, et al. [In The Matter of: Thorpe Insulation Company], No. 10-55744, 9th Cir.; 2012 U.S. App. LEXIS 1691). Full story on lexis.com Continue reading
