Intercreditor Agreement Didn’t Apply to Plan Distributions, Third Circuit Holds
The Third Circuit wrote an important decision on distributing collateral under an intercreditor agreement, but it wasn’t precedential.
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A Nonparty’s Bankruptcy Isn’t Providing Ground for Removal to Federal Court
The right of indemnification by a bankrupt isn’t establishing ‘related to’ jurisdiction in federal court.
‘Earmarking’ Only Applies When a Debtor Receives a Loan from a Third Party
Money taken from a debtor’s own retirement account to pay a creditor does not qualify for the earmarking defense, Chief Judge Fehling says.
Discretionary Bonuses Are Not Per Se Fraudulent Transfers
Discretionary bonuses by an insolvent employer are not automatically fraudulent transfers, Judge Silverstein says.
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Creditors of LPs or LLCs Can’t Sue for Breach of Fiduciary Duty
Creditors lack standing in Delaware and other states for derivative liability suits against officers and managers of LPs and LLCs.
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Bankruptcy Notice to a Creditor Represented by Counsel in State Court Is Adequate
Conversely, giving notice to a creditor’s state-court counsel may not be adequate, New Jersey judge says.
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Delaware’s Judge Walrath Writes a Primer on Consignments
Perfecting a consignment is easy, but failing to do so is disastrous.
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Sovereign Immunity Doesn’t Insulate States from Lien Stripping
For three independent reasons, Judge Taddonio rules that states are not immune from stripping down or stripping off tax liens.
Reading Stern Narrowly, Delaware Judge to Issue Final Order in Fraudulent Transfer Suit
Judge Sontchi declines to rule that 28 U.S.C. § 157 is unconstitutional by denominating fraudulent transfer suits as ‘core’ proceedings.
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Third Circuit Strips Debt Buyers of Defenses Under the FDCPA
Hiring a collection agent will not insulate a debt buyer from liability under the FDCPA.
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