Category Archives: Bankruptcy News
Resolving the Conflict: A Pragmatic Approach to the Appointment of Receivers as Provisional Liquidator
Did you know… that the court may, in special circumstances, exercise its discretion to appoint pre-existing receivers as a company’s provisional liquidators. Read More… Continue reading
11th Circuit Rules Creditors Failed To Demonstrate Debt Was Not Dischargeable
ATLANTA – A panel of the 11th Circuit U.S. Court of Appeals on May 4 ruled that a bankruptcy court properly concluded that a debtor's obligation to certain creditors was dischargeable because the creditors failed to show that it was nondischargeable under the Bankruptcy Code (Larry Gregory, et al. v. Ricky Leonard Beard [In Re: Ricky Leonard Beard], No. 11-14879, Chapter 7, 11th Cir.; 2012 U.S. App. LEXIS 9154). Continue reading
11th Circuit: Debtor’s Action Against Employer Lacks Standing; Dismissal Affirmed
ATLANTA – A panel of the 11th Circuit U.S. Court of Appeals on May 2 ruled that a debtor's employment discrimination claim was properly dismissed because the only party with standing to pursue that action is the bankruptcy trustee (Zinnia I. Chen v. Siemens Energy Incorporated, No. 11-14372, Chapter 7, 11th Cir.; 2012 U.S. App. LEXIS 8936). Continue reading
11th Circuit Reverses, Rules Lien On Debtor’s Property Void
ATLANTA – A panel of the 11th Circuit U.S. Court of Appeals on May 11 reversed and remanded a case and concluded that a lien on a debtor's property was void (Lorraine McNeal v. GMAC Mortgage LLC [In Re: Lorraine McNeal], No. 11-11352, Chapter 7, 11th Cir.; 2012 U.S. App. LEXIS 9589). Continue reading
4th Circuit Says Claim Was Time-Barred, Vacates Ruling On Damages
RICHMOND, Va. – In an unpublished opinion, the Fourth Circuit U.S. Court of Appeals on April 30 reversed a ruling, finding that the plaintiffs' West Virginia Uniform Fraudulent Transfer Act (WVUFTA) claim based on a corporation's drawdown on its line of credit and purchase of annuities was time-barred, and vacated the denial of a motion to increase a damage award (Joseph LaRosa, et al. v. Virgil D. LaRosa, et al., No. 11-1234, Chapter 7, 4th Cir.; 2012 U.S. App. LEXIS 8777). Continue reading
3rd Circuit: Barton Doctrine Valid; Bankruptcy Court Right To Allow Lawsuit
PHILADELPHIA – A panel of the Third Circuit U.S. Court of Appeals on May 4 ruled that the Barton doctrine applied to Chapter 7 bankruptcy cases and held that a bankruptcy court properly determined that an interested party could proceed with a state court lawsuit against the trustee based on an agreement to sell certain properties that were part of the bankruptcy estate (In Re: VistaCare Group LLC, No. 11-2695, Chapter 7, 3rd Cir.; 2012 U.S. App. LEXIS 9147). Continue reading
6th Circuit: Bankruptcy Court Right To Deny Creditors’ Claim; New Theory Improper
CINCINNATI – A panel of the Sixth Circuit U.S. Court of Appeals on May 8 ruled that a bankruptcy court properly denied a claim made by creditors who were not “clear” about their claim and on grounds that they improperly asserted a new claim in addition to their original case against the bankruptcy estate (Alison Gordon, et al. v. Official Committee of Unsecured Creditors [In Re: Royal Manor Management Inc.], No. 09-4432, Chapter 11, 6th Cir.; 2012 U.S. App. LEXIS 9451). Continue reading
6th Circuit: Pilots Fail To Show Northwest Bankruptcy Deal Administered Improperly
CINCINNATI – A panel of the Sixth Circuit U.S. Court of Appeals on May 7 ruled that a district court properly determined that a group of pilots who sued their union alleging discrimination for not getting a full payout of benefits from a bankruptcy agreement with Northwest Airlines did not show that there had been a violation of the Age Discrimination Employment Act (ADEA) (Frederick N. Bondurant, et al. v. Air Line Pilots Association International, et al., No. 10-1904, Chapter 11, 6th Cir.; 2012 U.S. App. LEXIS 9215). Continue reading
Global Aviation Seeks Bankruptcy Court Approval To Reject Equipment Leases
BROOKLYN, NY – Bankrupt Global Aviation Holdings Inc. on May 7 filed an omnibus motion in the U.S. Bankruptcy Court for the Eastern District of New York seeking authorization to reject certain equipment leases related to its airline business (In Re: Global Aviation Holdings Inc., No. 12-40783, Chapter 11, E.D. N.Y. Bkcy.). Continue reading
DirecTV Tells Bankruptcy Court Capitol Infrastructure Contract Motion ‘Senseless’
WILMINGTON, Del. – Satellite television provider DirecTV LLC on May 9 filed a brief in the U.S. Bankruptcy Court for the District of Delaware, objecting to bankrupt Capitol Infrastructure's motion seeking authorization to reject certain executory contracts, arguing that to do so would be “senseless” (In Re: Capitol Infrastructure LLC, No. 12-11362, Chapter 11, D. Del. Bkcy.). Continue reading
