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Category Archives: Chapter 11

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Artificial Impairment, Artificial Confirmation

Posted in Bankruptcy Trends, Chapter 11, Circuit Split
Similar to pizza ingredients, artificial impairment of creditors results in artificial confirmation of the Chapter 11 plan.  In Village Green I, GP v. Fannie Mae (In re Village Green I, GP), the Sixth Circuit affirmed the decision to vacate the confirmation order a second time.  The debtor had three creditors: its lender, its former lawyer,… Continue Reading

Feeling Comfortable Using Legal Jargon in Everyday Life

Posted in Bankruptcy Trends, Chapter 11, Proof of Claim
While I thought that only a Kentucky senator would object to his own legislation, Chapter 11 debtors in the Eighth Circuit must object to their own plan to have person-aggrieved standing for an appeal.  In O&S Trucking, Inc. v. Mercedes Benz Financial Services USA (In re O&S Trucking, Inc.), the court affirmed the BAP’s dismissal of the appeal for… Continue Reading

Old King Coal, What Are We Gonna Do?

Posted in Bankruptcy Trends, Chapter 11, Pop Culture
Earlier this year, I became mildly obsessed with (Kentucky’s own) Sturgill Simpson.  In addition to being an immensely-talented throwback musician, he appears to have predicted what many bankruptcy lawyers would be doing in 2015.  The immensity and difficulty of coal cases is also why I haven’t done much blogging lately.  From 2013, here’s Sturgill performing Old King… Continue Reading

ABI Chapter 11 Reform Report Part I: Ten Early-Case Changes

Posted in Chapter 11, Reform
On December 8, the American Bankruptcy Institute’s Chapter 11 Reform Commission released its report, which was the product of a three-year comprehensive study of issues and trends in Chapter 11 as well as recommendations on how to best modernize the statute.  The extensive 400-page report can be located on the Commission’s website here, and you can… Continue Reading

#BankBankruptcy: House Passes Financial Institution Bankruptcy Act

Posted in Chapter 11
Yesterday, the House of Representatives passed H.R. 5421, the “Financial Institution Bankruptcy Act of 2014” or “FIBA.”  FIBA would amend the Bankruptcy Code (and certain sections of title 28) to create a Subchapter V to Chapter 11, to be utilized for the resolution of involvent bank holding companies.  FIBA is designed as an alternative to the… Continue Reading

Double Whammy: Sixth Circuit Upholds Absolute Priority Rule in Individual Chapter 11

Posted in Absolute Priority Rule, Chapter 11
What’s the difference between an individual Chapter 11 and a Chapter 13? In light of the Sixth Circuit’s recent Ice House America, LLC v. Cardin (.pdf of the option is here), there are now two major differences: Difference #1:             Chapter 11 has an absolute priority rule (and Chapter 13 doesn’t) Difference #2:             Individuals will… Continue Reading

Fisker’d!!!11 – Free Lance-Star Court Caps Credit Bid

Posted in Chapter 11, Note Sales
I (along with every other bankruptcy blogger) wrote extensively on the Fisker decisions from Delaware limiting a secured creditor’s right to credit bid.  My original post is here, and some other good discussion can be found here and here. Yesterday, Judge Huennekens entered a Memorandum Opinion (the opinion can be found here) that similarly capped the… Continue Reading

Note-Buyer Beware: Credit Bidding After Fisker

Posted in Chapter 11, Note Sales
Judge Gross approved a sale motion in the Fisker Automotive case in January that seems to dramatically curtail a secured creditor’s ability to credit-bid in a Section 363 sale where the underlying debt instrument was purchased at a discount.  The basic facts are that the U.S. Department of Energy had a $168.5 million senior loan… Continue Reading