In 1932, J. Howard Marshall and William O. Douglas co-authored an article published in the Columbia Law Review titled “A Factual Study of Bankruptcy Administration and Some Suggestions.” Douglas (not yet 35 years old) would go on to become the longest-serving justice of the Supreme Court. But those of us at the Stern Files are […]
For a Throwback Thursday, we often go way back, to cases establishing first principles. This time, however, we travel not so far back, but still to a bygone era, the early 80’s. It was a time when the Bankruptcy Code was still new, and judges could interpret it without the weight of much practice and […]
The Supreme Court Gets Its Grammar on: Interpreting the Right to Postpetition Interest Under Section 506(b) In this Throwback Thursday, piece we revisit the decision of the United States Supreme Court in U.S. v. Ron Pair Enters. In a 5-4 decision, the Supreme Court held that section 506(b) of the Bankruptcy Code permits a creditor […]
Part Two: The Aftermath of Pine Gate When we left off in last week’s Throwback Thursday entry, the year was 1977, and lenders across the country were in an uproar over a single asset real estate bankruptcy case from the Northern District of Georgia — In re Pine Gate Assocs., Ltd. The case had exposed […]
Part One: The Pine Gate Problem Since the inception of the Bankruptcy Code, certain “celebrated” cases have come to be so significant that their holdings are practically part of the Code itself. For instance, the Fifth Circuit’s In re Greystone III opinion shapes section 1122(b) so significantly (“thou shalt not classify similar claims differently in […]
Contributed by Cristine Pirro What would a rule be without an exception? In the seminal decision of Citizens Bank of Maryland v. Strumpf, the United States Supreme Court held that a bank’s imposition of a temporary administrative hold on a debtor’s deposit account did not constitute a setoff and did not violate the automatic stay.
Contributed by Conray C. Tseng This Throwback Thursday, we are going old school to 1986 to answer the question – does section 1123(a)(6) of the Bankruptcy Code prohibit a debtor from retaining existing nonvoting equity securities? Further, can a debtor modify existing voting equity securities and render them nonvoting? Yes and no, according to the Ninth […]