Affirmance Shows that Merit Management Has Been Gutted in the Second Circuit
Properly structuring a leveraged refinancing in the Second Circuit can avoid attack as a fraudulent transfer despite the Supreme Court’s effort at narrowing the ‘safe harbor.’
Civil Penalties for Defrauding Consumers Weren’t Discharged Under Section 1141(d)(6)(A)
Reversing the bankruptcy court, a district judge in New York held that a civil penalty wasn’t discharged even though the fraud wasn’t committed against the government.
In ‘Chapter 20,’ Discharged Mortgage Claim Resurrects as Unsecured, EDNY Judge Says
Judge Grossman didn’t abolish ‘chapter 20’ entirely. He required the debtor to treat the subordinate mortgage lender like all other unsecured creditors, even though the debtor’s personal liability to the lender had been discharged in the prior chapter 7 case.
District Judge Rakoff Explains Why the Debtor Alone May Assert a Cure Claim
A creditor can’t assert a cure claim, even though Section 365(b) doesn’t give the counterparty the sole right to demand a cure on assumption of an executory contract.
Being an ‘Officer’ Disqualifies Someone from a KERP, New York District Judge Says
Officers are presumptively disqualified from KERPs, “absent a strong showing that they do not perform any significant role in management,” a district judge in New York says.
IRA Withdrawals Aren’t Protected from Madoff Fraudulent Transfer Judgments
Madoff defendant socked with $280,000 in prejudgment interest for relitigating issues decided long ago.
Filing Chapter 15 as a ‘Litigation Tactic’ Didn’t Bar ‘Foreign Main Recognition’
Bankruptcy Judge Garrity didn’t impose a good faith filing requirement onto foreign main recognition of a chapter 15 case.
The Pleading and Proof Required for Claims Against a Subsequent Transferee
Read Judge Grossman’s opinion as though it were a final exam question to see how many issues you spot and whether you come up with the correct answers.
Judge Glenn Explains When Structured Dismissals and Comfort Orders Are Ok
Jevic didn’t ban structured dismissals when there is no violation of the rules of priority and the alternatives would create greater administrative insolvency.
Treble Damages for ‘Willfulness’ Won’t Automatically Result in Nondischargeability
The lack of specific findings of fact by the arbitrator meant that a treble damage award for willful breach of contract was dischargeable.