Rule 9006(b) Permits Bankruptcy Courts to Extend Statutes of Limitations
Extending statutes of limitations does not affect ‘substantive’ rights, thus the Rules Enabling Act does not preclude a rule from allowing an extension, Judge Julie Manning says.
Court:
Equity Governs When Lease Rejection May Be Retroactive to the Filing Date
The ‘cap’ for lease-rejection damages can start when the debtor attempts to surrender the premises.
How to Turn Prepetition Work into a Postpetition Administrative Claim
Prepetition brokerage fees characterized as rent under an aircraft lease were administrative claims to be paid in full under Section 365(d)(5).
Courts Are Split on Counting Future Rent Toward the $7.5 Million Debt Cap in Sub V
If future liability on unexpired leases and executory contracts is counted, many companies will be ineligible for Subchapter V of chapter 11.
Sub V Plan with Nondebtor Release Approved over Opposition from the Affected Class
A decision from a New York bankruptcy court makes nondebtor releases easier to obtain in Subchapter V than in large, mass tort chapter 11 cases.
Dispute over Part of a Claim Disqualifies an Involuntary Petitioner
The 2005 amendment to Section 303(b)(1) disqualifies an involuntary petitioner if there is a dispute as to even part of the creditor’s claim.
In MOAC on Remand, the Second Circuit Vacates the Order Assigning the Lease
The Second Circuit is remanding to district court for a ruling on the relief available to the landlord, given that the sale closed years ago.
Court:
Setoff Can’t Be Raised as a Defense to Receipt of a Fraudulent Transfer
The Madoff case makes more law: A claim against a bankrupt estate can’t be set off against liability for receipt of a fraudulent transfer because one arose before bankruptcy and the other arose after.
Judge Explains Why Tax Liens Are Subordinated to Domestic Support Obligations
Congress decided to deviate from standard priorities by providing in Section 724 that unsecured domestic support obligations come ahead of tax liens.
A ‘Litigation Tactic’ Isn’t Fatal in Chapter 15
A bankruptcy judge in New York was deferential to foreign liquidators using chapter 15 to extinguish a lawsuit in the U.S. that they saw as a nuisance.