In re Quigley
Feb
26
2008
Ruling
Personal injury claimants' inability to satisfy state's proof requirements did not affect right to vote on chapter 11 plan.
Procedural posture
A bankruptcy debtor submitted a proposed ballot to solicit votes on the debtor's reorganization plan from individuals who held asbestos personal injury claims. An ad hoc committee of asbestos victims objected to the ballot on the ground that it did not seek to identify individuals whose causes of action were unenforceable under state tort reform laws.
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Court
:
- 11 U.S.C.
Savage & Assocs. v. Mandl (In re Teligent Inc.)
Jan
03
2008
Ruling
Debt forgiveness extended to debtor's former CEO was avoidable.
Procedural posture
The plaintiff, the unsecured claim estate representative of the debtor, commenced an adversary proceeding to avoid and recover alleged preferential and fraudulent transfers made by the debtor to defendant, the former chief executive officer ("CEO") of the debtor. The preference amount was $40,105.40 and the constructive fraudulent transfer concerned loan proceeds in the amount of $12 million the CEO was released from having to repay.
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Court
:
- 11 U.S.C.
In re Bancredit Cayman Ltd. (In Liquidation)
Nov
02
2007
Ruling
Foreign debtor granted U.S. discovery rights was not entitled to ex parte extension of statute of limitations.
Procedural posture
Previously, the court had denied a motion by foreign representatives of a debtor, a foreign financial institution in a chapter 15 case, to amend or clarify a recognition order to incorporate the relief available to a trustee under 11 U.S.C. § 108. The foreign representatives filed a motion for reargument.
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Court
:
- 11 U.S.C.
In re Compania de Alimentos Fargo S.A.
Oct
12
2007
Ruling
Bankruptcy court abstained from involuntary case against foreign debtor given pending proceeding in Argentina.
Procedural posture
Petitioners, creditors of an Argentine debtor, filed an involuntary chapter 11 petition. The Argentine debtor filed a motion to dismiss the petition on various grounds, including abstention under 11 U.S.C. § 305(a)(1), pointing out that a current "concurso preventivo" reorganizing the debtor was pending in Argentina. The court converted part of the debtor's motion to one for summary judgment.
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Court
:
- 11 U.S.C.
In re Brous
Jun
12
2007
Ruling
Trustee required to establish right to compensation under lodestar method.
Procedural posture
Three fee applicants sought final compensation in the chapter 7 case. They included: (1) the chapter 7 trustee; (2) the trustee's general counsel; and (3) the trustee's special litigation counsel. The main creditor in the case filed an objection to each application.
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Court
:
In re Euro-American Lodging Corp.
Apr
03
2007
Ruling
Trustee appointed in converted involuntary case as debtor mismanaged assets and had padded list of creditors to defeat petition.
Procedural posture
Chapter 7 debtor filed a motion to convert the case to chapter 11 pursuant to 11 U.S.C. § 706. Creditor filed a motion to appoint a chapter 11 trustee pursuant to 11 U.S.C. § 1104(a).
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Court
:
- 11 U.S.C.
Continental Casualty Co. v. Pfizer Inc. (In re Quigley Co.)
Feb
22
2007
Ruling
Relief from stay granted to allow arbitration of asbestos-related insurance claims.
Procedural posture
Defendants, chapter 11 debtor and its parent company, moved to dismiss plaintiff insurers'complaint, which sought a declaratory judgment that the policies issued to debtor did not cover asbestos-related claims and challenged the proposed assignment of rights in the policies to a trust. Defendant insurance companies sought relief from the automatic stay, 11 U.S.C. § 362, to allow arbitration of the coverage issues raised in the complaint.
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Court
:
In re Quigley Co.
Aug
09
2006
Ruling
Reduction of asbestos claims to 90% resulted in dilution of claimants'votes and prevented consensual plan confirmation.
Procedural posture
The debtor and its non-debtor parent company sought to confirm the debtor's third amended plan of reorganization under chapter 11 to deal with their asbestos-related liability. The holders of unfiled and unliquidated asbestos-related personal injury claims (claimants) voted to accept or reject the plan.
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Court
:
- 11 U.S.C.
Salsberg v. Trico Marine Services (In re Trico Marine Servs.)
May
05
2006
Ruling
Court dismissed complaint seeking revocation of confirmed plan since a revocation order could not restore the status quo existing before confirmation.
Procedural posture
Plaintiffs brought an adversary proceeding to revoke a confirmation order. The court granted the motion for summary judgment made by defendant reorganized debtors on the ground that the revocation order could not protect innocent third parties, and would cause substantial uncertainty. Plaintiffs supplemented the record, which was treated as a motion for reargument. Plaintiffs also moved to supplement the record a second time.
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Court
:
Silverman v. Pauls Landmark Inc. (In re Nirvana Rest.)
Feb
24
2006
Ruling
Trustee was denied a motion to avoid a transfer of a guaranty under the Code and New York law since the trustee failed to show constructive fraudulence.
Procedural posture
Plaintiff, the chapter 7 trustee, commenced an adversary proceeding against defendant transferee to avoid, under New York law and 11 U.S.C. § 548(a), a guaranty given by debtor for the benefit of an affiliate, and to recover the rent payments made in connection with the guaranty. The matter was before the court for trial.
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Court
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