Rochelle's Daily Wire

Bankruptcy Judge Paul Bonapfel differed with two judges in Houston by holding that a nonaccepting class in Subchapter V means that a plan must be confirmed in cramdown.

The tide is turning against corporate Sub V debtors. Two bankruptcy judges now side with two circuits in holding that debts of corporate debtors can be nondischargeable.

A decision by a district judge in Idaho may or may not be irreconcilable with a Ninth Circuit BAP decision that a finding of eligibility for Sub V is interlocutory and not appealable.

Disagreeing with two bankruptcy courts in Houston, Miami’s Judge Isicoff holds that a Sub V plan with a nonvoting class can be confirmed only as a nonconsensual plan.

Tort claims are usually unliquidated, but a contract claim is liquidated if it’s precisely determinable by agreement or operation of law, Judge Lori Vaughan says.

Bankruptcy Judge Hercher agreed with the results in the Fourth and Fifth Circuits but disagreed with some of the appeals courts’ logic.

To align with congressional intent underpinning Section 365(d)(3), Judge Gravelle gave the landlord an administrative claim for base rent due after filing and before automatic rejection.

One senator is blocking an extension of the $7.5 million debt cap for Subchapter V and the $2.75 cap for chapter 13.

The Code doesn’t contain any rules specifying when a Subchapter V plan should have a five-year duration rather than three years.

Bankruptcy Judge Eduardo Rodriguez of Houston opined on the limited powers of a Subchapter V trustee.