In re Urban Communicators PCS Ltd. Pship
Dec
11
2007
Ruling
Creditor allowed contractual default rate of interest with downward modification to avoid conflict with usury laws.
Procedural posture
A creditor in bankruptcy cases was determined to be oversecured and asserted that it was entitled to interest on its claims based on the contractual rate of interest stated in promissory notes, which included an increased default rate of interest and compounding the interest. The creditor moved for an award of interest pursuant to 11 U.S.C. § 506(b).
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Court
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In re Diva Jewelry Design Inc.
May
01
2007
Ruling
Chapter 7 trustee could retain attorney who previously represented creditors.
Procedural posture
Chapter 7 trustee filed an application to employ a bankruptcy attorney under 11 U.S.C. § 327(a). The United States Trustee opposed the application on the grounds that the attorney was not disinterested, represented interests adverse to the estate, and had an actual conflict of interest.
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Court
:
- 11 U.S.C.
In re Adelphia Communs. Corp.
Mar
06
2007
Ruling
Settlement could provide for sale of estate interest in D&O policies but could not include channeling injunction and third party releases not critical to debtor's reorganization.
Procedural posture
In a chapter 11 bankruptcy case, the debtors moved, pursuant to 11 U.S.C. § 363, for approval of a settlement with insurers that issued their Directors and Officers ("D&O") policies under which the debtors would sell their interest in the policies to the insurers for $32.5 million. The settlement included a proposed channeling injunction prohibiting others from proceeding against the insurers to pursue claims under the policies.
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Court
:
- 11 U.S.C.
In re Adelphia Communs. Corp.
Jan
11
2007
Ruling
Franchisee rights to consent to assignment and certain rights of first refusal were enforceable pursuant to "applicable law" exception.
Procedural posture
The court had before it the executory contract assignment issues, under 11 U.S.C. § 365, associated with debtors'contemplated transfer of their cable operations to affiliates of two asset purchase buyers. Though debtors had been able to consensually resolve the section 365 issues with all but about 14 of the approximately 2,500 local franchising authorities ("LFAs") that had issued franchises, issues with respect to the remaining 14 remained.
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Court
:
In re Adelphia Communs. Corp.
Dec
11
2006
Ruling
Court refused to designate creditors'votes for confirmation on grounds of bad faith absent highly egregious conduct.
Procedural posture
The bondholders filed a motion to designate, for bad faith, the votes in the class of senior notes of the three targeted creditors that voted to support the chapter 11 plan for confirmation. The targeted creditors and creditors committee opposed the motion on the ground that there was no basis for disqualifying the votes.
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Court
:
- 11 U.S.C.
In re Ames Dept Stores Inc.
Jul
05
2006
Ruling
Assignment of lease for store not located in shopping center that would not disrupt tenant mix approved
Procedural posture
In jointly administered chapter 11 cases, debtor and its subsidiaries sought to assume and assign an unexpired lease of nonresidential real property in accordance with certain designation rights. The over-landlord of the store and others objected.
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Court
:
- 11 U.S.C.
Adelphia Communs. Corp. v. America Channel LLC (In re Adelphia Communs. Corp.)
Jun
26
2006
Ruling
Court found violation of automatic stay since effort to block purchase of debtor's assets was attempt to exercise control over estate property.
Procedural posture
Plaintiff bankruptcy debtors, a cable television system, brought an adversary proceeding against defendants, a cable channel and its lawyers, seeking a declaration that defendants violated the automatic bankruptcy stay by pursuing an antitrust action against prospective purchasers of the debtors'assets, and seeking to enjoin defendants'pursuance of the action.
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Court
:
- 11 U.S.C.
Adelphia Communs. Corp. v. The America Channel LLC (In re Adelphia Communs. Corp.)
Jun
05
2006
Ruling
Court granted motion for TRO enjoining state court antitrust action since action violated automatic stay by interfering with estate's ability to dispose of its property.
Procedural posture
Plaintiffs, principal debtor and its subsidiaries in jointly administered chapter 11 cases, brought an adversary proceeding against defendants, a cable TV channel and its attorneys, pursuant to Fed. R. Bankr. P. 7065, Fed. R. Civ. P. 65(b), seeking a temporary restraining order ("TRO") enjoining the prosecution of an antitrust action in Minnesota that sought an injunction restraining the pending sale of the debtors'assets.
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Court
:
- 11 U.S.C.
In re Adelphia Communs. Corp.
Jan
23
2006
Ruling
Interdebtor disputes did not evidence fraud or mismanagement warranting the appointment of a trustee for the intermediate subsidiary of a chapter 11 debtor.
Procedural posture
In this contested matter under the umbrella of the jointly administered chapter 11 cases of debtors, a communications company (parent company) and its subsidiaries, the Ad Hoc Committee of Noteholders, who were the holders of bond debt issued by an intermediate subsidiary of the parent company, one of the 231 debtors whose chapter 11 cases were being jointly administered in this court, moved for several orders, including disqualifying counsel.
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Court
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