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In re Sultan Realty LLC

Ruling
Creditor's claim allowed inclusive of interest at post-default rates, costs and expenses.
Procedural posture

Debtor objected to a claim filed by movant creditor, the assignee of a first mortgage on debtor's property. When movant sought summary judgment on the issue of the allowability of its claim, the court considered whether movant's claim should be allowed and whether it properly included prepetition and postpetition interest at the 24% post-default rate and costs and expenses incurred by movant's assignor in prosecuting a foreclosure action.

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Commercial opinion summary, case decided on December 20, 2012 , LexisNexis #0113-044

In re Hawker Beechcraft Inc.

Ruling
Debtor ordered to either assume or rejecting agreement regarding use of Swiss company's intellectual property (IP) in the manufacture, sale and support of aircraft.
Procedural posture

Debtors were a party to an agreement regarding its use of a Swiss company's intellectual property (IP) in the manufacture, sale and support of certain aircraft. The Swiss company (movant) filed a motion to compel the debtors to assume or reject the agreement within a specified time pursuant to 11 U.S.C.S. § 365(d)(2).

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Commercial opinion summary, case decided on December 07, 2012 , LexisNexis #0113-010

In re Hawker Beechcraft Inc.

Ruling
Approval of key employee incentive plan denied due to failure of insiders to meet BAPCPA standards.
Procedural posture

Debtors filed a motion seeking approval of their proposed key employee incentive plan (the "KEIP") and their non-insider key employee retention plan (the "KERP"). Following an evidentiary hearing, the court approved the KERP from the bench, and reserved decision on the KEIP.

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Commercial opinion summary, case decided on August 24, 2012 , LexisNexis #0912-117

In re Madison 92nd St. Assocs. LLC

Ruling
Debtors' objection to inclusion of prepayment premium in proof of claim overruled as barred by res judicata.
Procedural posture

Chapter 11 debtor objected to various aspects of an oversecured creditors' proof of claim.

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Commercial opinion summary, case decided on June 05, 2012 , LexisNexis #0612-114

In re 785 Partners LLC

Ruling
Creditor allowed contract rate of interest on claim.
Procedural posture

A bankruptcy debtor in a single asset real estate case proposed a plan of reorganization which provided for payment of a claim of a creditor over-secured by the debtor's property to include pre-petition and postpetition interest at the contract rate rather than the default rate. The creditor objected to the treatment of the creditor's claim in the debtor's plan.

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Commercial opinion summary, case decided on April 09, 2012 , LexisNexis #0512-010

In re MGM Studios

Ruling
Bankruptcy court lacked subject matter jurisdiction to grant authority for chapter 11 debtor to purchase debts of wholly-owned subsidiary and release another subsidiary's debts.
Procedural posture

Movant, a Chapter 11 debtor that, along with certain affiliates, had filed a prepackaged Chapter 11 case and already had won confirmation of its plan, asked the court for authority to enter into transactions involving its purchase of the debts of a wholly-owned subsidiary and its proposed release of debts owed by a different subsidiary. At issue was whether the court had jurisdiction under 28 U.S.C.S. § 1334(b).

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Commercial opinion summary, case decided on November 07, 2011 , LexisNexis #1111-136

Gowan v. Wachovia Bank (In re Dreier LLP)

Ruling
Lien could not be avoided in absence of fraud and where contemporaneous exchange for new value defense applied.
Procedural posture

Plaintiff bankruptcy trustee brought an adversary proceeding against defendant bank alleging that a lien granted to the bank to secure a loan to a bankruptcy debtor in furtherance of the fraudulent Ponzi scheme of the debtor's principal was avoidable as a fraudulent or preferential transfer. The bank moved to dismiss the complaint.

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Commercial opinion summary, case decided on August 03, 2011 , LexisNexis #0811-124

In re Pomerance

Ruling
Debtor who was not party to lease with landlord was not entitled to restoration to apartment occupied with roommate.
Procedural posture

A Chapter 7 debtor filed a motion to restore her to possession of an apartment and the return of certain personal property that was located at the apartment and was now held in storage. A landlord opposed the motion, arguing that the stay did not apply to a summary proceeding. Alternatively, the landlord asked the court to annul the automatic stay to the extent necessary to validate the eviction.

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Consumer opinion summary, case decided on April 13, 2011 , LexisNexis #0511-041

Morgan Olson LLC v. Frederico (In re Grumman Olson Indus.)

Ruling
Asset sale order did not preclude liability of the purchaser for post-sale personal injury claim.
Procedural posture

Purchaser of a bankruptcy debtor's assets brought an adversary proceeding against defendant claimants who were injured by an allegedly defective truck manufactured and sold by the debtor, seeking a declaration that the asset sale order precluded successor liability for the claimants' injuries in the claimants' state-court action. The purchaser and the claimants cross-moved for summary judgment.

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Commercial opinion summary, case decided on February 25, 2011 , LexisNexis #0311-103

Jacobs v. Gramercy Jewelry Mfg. Corp. (In re M. Fabrikant & Sons Inc.)

Ruling
Preference period payments made much later than debtor's usual practice were not made in ordinary course of business and were voidable.
Procedural posture

Plaintiff, a trustee of a shared assets trust, filed an adversary proceeding against defendant creditor under 11 U.S.C.S. § 547(b) to recover funds paid by the Chapter 11 debtors during the 90-day preference period. The trustee established a prima facie case under § 547(b). At issue was whether the transfers were incurred and made in the ordinary course of business or financial affairs of the debtors and the creditor under § 547(c)(2)(A).

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Commercial opinion summary, case decided on November 04, 2010 , LexisNexis #1210-052