The Fourth Circuit Provides a Useful Roadmap for Debtors Seeking Third-Party Releases

July 17, 2014

The inclusion of third-party releases in plan of reorganization can be a particularly contentious aspect of the plan confirmation process. Debtors seeking such releases typically face opposition from affected creditors and scrutiny from bankruptcy courts that consider such releases prone to abuse. As the Fourth Circuit’s recent decision in National Heritage Foundation, Inc. v. Highbourne […]

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The Pain that Comes along with Walking a Mile in Your Own Shoes … Circuits Refuse to Allow Reorganized Debtors to “Step in the Shoes” of Debtors in Possession as Subrogees

July 16, 2014

Walk a mile in my shoes Walk a mile in my shoes Yeah, before you abuse, criticize and accuse Walk a mile in my shoes (Elvis Presley, “Walk a Mile in My Shoes”) Walk a mile in these Louboutins But they don’t wear these *%!# where I’m from I’m not hating, I’m just telling you […]

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Code vs. Contract: Fifth Circuit holds that Section 506(b) Governs Recovery of Proceeds from a Foreclosure Sale After the Automatic Stay Has Been Lifted

July 15, 2014

When an oversecured creditor forecloses on a debtor’s property after the automatic stay has been lifted, does the Bankruptcy Code (as opposed to state law) govern recovery of attorney’s fees and other amounts from the sale proceeds? Does the bankruptcy court have jurisdiction over the distribution of such proceeds? In Goldsby v. 804 Congress LLC […]

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Could a Bitcoin Exchange Constitute a “Stockbroker”?

July 14, 2014

This is the third post in our Bitcoin Bankruptcy series on the Weil Bankruptcy Blog.  In the spring of this year, the shutdown of Japanese bitcoin exchange Mt. Gox made us think about what might have happened if Mt. Gox were a U.S.-based bitcoin exchange.  We began the series by taking a general look at […]

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Unfinished Business: And The Winner Is . . .

July 11, 2014

In a unanimous decision, the New York Court of Appeals stuck a dagger through the heart of bankruptcy estates of failed law firms as it declared that profits earned on matters that former partners of the failed firm take with them to their new employers are not property of the former firm.  Those profits belong […]

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How to Overcome Your Fear of “Commitment” If You Are a Bank Holding Company

July 10, 2014

When a bank holding company files a chapter 11 case, a key factor to the success of the case will be whether the debtor previously made any commitment to a federal depository institution regulatory agency, such as the FDIC, to maintain the capital of the debtor’s bank subsidiary.  This is because section 365(o) of the Bankruptcy […]

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The Stern Files: Uncertainty Abounds Regarding Consent to Bankruptcy Court Adjudication

July 9, 2014

Recently, the Bankruptcy Court for the Eastern District of Louisiana stayed its own judgment pending an appeal to resolve doubt over the bankruptcy court’s authority to enter judgment on counterclaims related to a management agreement among Highsteppin’ Productions, L.L.C. (HSP) and debtors George Porter, Jr., Brian Stoltz, David Russell Batiste.  The bankruptcy court issued the […]

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