New York

Giving Inferior Classes Nothing May Not by Itself Amount to ‘Fair and Equitable’

Conducting a valuation hearing on a cramdown plan isn’t always required.

Upstate New York Bankruptcy Judge Nixes an ‘Opt-Out’ Plan with Nondebtor Releases

After Purdue, bankruptcy judges are now split on whether mass-tort plans are permissible if creditors must opt out.

New York Court Holds that ‘Future’ Asbestos Claims Can Be Discharged Without a Trust

Professors disagree on whether latent asbestos claims can be discharged without a trust for future claimants.

Preserving Defensive Setoff Rights Doesn’t Require Filing a Claim, Judge Glenn Says

Defensive setoff rights are not discharged by chapter 11 confirmation, even when no proof of claim was filed.

Established Law Pointed Judge Lane Toward Dismissing Giuliani’s Chapter 11 Case

New York’s Judge Sean Lane saw no reason for forcing holders of a $148 million defamation judgment ‘to wait years’ for a ‘modest distribution.’

A Chapter 7 Case Raises Issues in Truck Insurance on Standing in Bankruptcy Cases

Judge Mastando in New York decided that a chapter 7 trustee has authority to put the debtor’s subsidiary voluntarily into bankruptcy.

MOAC Again: No Remedy for the Landlord Despite Beating Sears in the Supreme Court

On remand from the Supreme Court and the Second Circuit, the district court decides that the Mall of America landlord isn’t entitled to more than the bargain it made with Sears in 1991.

District Court Narrowly Reads a Nondebtor Release in a Sale-Approval Order

A potential bidder wasn’t barred from suing the successful bidder outside of bankruptcy court.

District Court Orders Arbitration of All Noncore Claims, Reversing the Bankruptcy Court

Absent ‘concerns peculiar to bankruptcy’ when there is an arbitration clause, the district court followed Henry Schein by saying that the bankruptcy court should have allowed arbitrators to decide which claims are arbitrable, or not.

New York Judge Rejects a ‘Lockup’ Long Before a Plan Is Negotiated

New York’s Judge Martin Glenn disapproved a lockup agreement masquerading as a plan-support agreement that required the creditor to vote for any plan the debtor might propose.

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