Texas Southern District

Later Developments Don’t Undo Subchapter V Eligibility, Houston Judge Says

In the Alex Jones corporate Subchapter V case, Bankruptcy Judge Christopher Lopez said that the later chapter 11 filing by Jones himself, with about $1.5 billion in debt, didn’t kick the corporate debtor out of Subchapter V and into ‘ordinary’ chapter 11.

Nonseverability Won’t Make a Confirmation Appeal Equitably Moot in the Fifth Circuit

When it comes to overbroad exculpations and nondebtor releases, a nonseverability clause in a chapter 11 plan won’t invoke equitable mootness to dismiss an appeal from confirmation.

A UCC Lien on ‘Accounts’ Won’t Attach to a Postpetition Sale of Real Property

Although a UCC lien on ‘accounts’ would attach outside of bankruptcy to proceeds from the sale of real property, Section 552(b) cuts off attachment if the sale occurs after filing

Another Court Holds that a Debtor Has a Property Interest in Contracts, Not Customers

Once the debtor loses the right to do business, taking customers for no consideration isn’t a fraudulent transfer, Judge Isgur holds.

A Judgment for Punitive Damages Might Not Support Nondischargeability Automatically

Jury instructions and a special verdict form can determine whether issue preclusion automatically results in nondischargeability.

The Right to Credit Bid Does Not Preclude Charging a Buyer’s Premium at Auction

When a secured lender credit bids, a buyer’s premium can be a legitimate surcharge against the lender’s collateral, Judge Rodriguez says.

On an ‘Involuntary,’ Denial of Summary Judgment Doesn’t Mean the Claim Is Disputed

The Iqbal and Twombly standards don’t apply to involuntary petitioners who are required to use Official Form 105.

Liquidating a Defunct Corporation Qualifies for the SBRA, Judge Lopez Says

Increasingly, courts are allowing defunct corporations to proceed under the SBRA while individual owners of defunct businesses aren’t being treated as small business debtors in chapter 11.

Once Repudiated, a Contract Is No Longer Executory

Courts disagree on whether a repudiated contract remains executory.

Judge Isgur Knocks Down a Special Counsel’s Fees for ‘Unprofessional’ Conduct

Incivility may be acceptable in matrimonial matters, but not when the lawyer represents a debtor.