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Actrade Liquidation Trust v. Greenwich Ins. Co. (In re Actrade Fin. Techs. Ltd.)

Ruling
General release of debtor's claims against sureties did not cover additional claims pursued by liquidation trustee.
Procedural posture

Debtor's successor-in-interest, i.e., a liquidation trust and another debtor's trustee, sought a declaratory judgment that defendants, i.e., sureties and another insurance company, were liable on bonds aggregating $ 14 million that they issued in favor of debtor (as obligee) and on behalf of the other debtor (as principal). The court denied cross-motions for summary judgment on the defense of release; the parties proceeded to trial.

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Commercial opinion summary, case decided on December 31, 2009 , LexisNexis #0110-135

In re CIT Group

Ruling
Disclosure statement, approval of solicitation procedures and confirmation of the debtors' modified second amended plan granted.
Procedural posture

Debtors moved for entry of an order on the adequacy of the debtors' disclosure statement, approval of solicitation procedures, and confirmation of the debtors' modified second amended reorganization plan pursuant to 11 U.S.C.S. § 1129.

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Commercial opinion summary, case decided on December 08, 2009 , LexisNexis #0110-062

In re General Growth Props.

Ruling
Failure to negotiate with lenders and replacement of independent managers did not provide grounds for "bad faith" dismissal of chapter 11 case.
Procedural posture

Upon filing bankruptcy petitions, the ownership and operation of shopping malls by bankruptcy debtors, an ultimate parent and related entities, had a stable and generally positive cash flow and continued to perform well despite a financial crisis in the credit market. Movants, secured lenders to certain of the debtor entities, moved to dismiss the entities' cases based on lack of good faith.

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Commercial opinion summary, case decided on August 11, 2009 , LexisNexis #0909-054

LaMonica v. North of England Protecting and Indemnity Assoc. (In re Probulk Inc.)

Ruling
Insurer's termination of debtor's policies pursuant to "cesser clause" was ineffective.
Procedural posture

Chapter 7 trustee brought an action against insurers. He filed an emergency motion seeking a temporary restraining order to prevent insurers who had provided coverage for debtors' vessels from canceling outstanding insurance or, to the extent necessary, to require them to restore coverage. The trustee was granted relief. The trustee thereafter filed an adversary proceeding. The trustee sought a preliminary injunction.

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Commercial opinion summary, case decided on July 07, 2009 , LexisNexis #0809-047

In re Journal Register Co.

Ruling
Chapter 11 plan confirmed with provisions for gift from secured lenders to unsecured trade creditors and incentive bonus to employees.
Procedural posture

Debtor proposed a reorganization plan which provided a means for payment of a gift from secured lenders to unsecured trade creditors, and provided for an incentive plan which permitted bonuses to employees who achieved stated goals. The debtors moved for confirmation of the plan, and certain creditors objected to confirmation.

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Commercial opinion summary, case decided on July 07, 2009 , LexisNexis #0809-054

In re Empire Equities Cap. Corp.

Ruling
Debtor that defaulted under contract allowed 60 days to exercise expired option.
Procedural posture

Debtor entered into an option contract to purchase three loans from movants. Debtor paid a deposit. Debtor obtained two extensions. Before the closing deadline on the second extension (option contract requiring time being of the essence), debtor filed for chapter 11 relief. Movants filed a motion for an order granting relief from the automatic stay to terminate the contract, or alternatively, to compel its rejection.

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Commercial opinion summary, case decided on June 03, 2009 , LexisNexis #0709-072

In re Stone Barn Manhattan LLC

Ruling
Settlement with debtor's principal consumer personal property lessor approved subsequent to default under the lease.
Procedural posture

The debtors, a chain of approximately 276 apparel and accessories discount stores, moved, under Fed. R. Bankr. P. 9019, for approval of a settlement agreement with their principal non-consumer personal property lessor. The settlement was supported by the Official Committee of Unsecured Creditors of the debtors, but was opposed by the Official Committee of Unsecured Creditors of the successor in interest to the debtors, also in bankruptcy.

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Commercial opinion summary, case decided on May 22, 2009 , LexisNexis #0709-099

In re Gen. Growth Props.

Ruling
Debtor authorized to continue to manage cash through system maintained prior to petition date.
Procedural posture

Debtors moved, pursuant to 11 U.S.C.S. §§ 105(a), 345(b), 363(b), 363(c), 364(a), and Fed. R. Bankr. P. 6003, 6004, for (a) authority to (i) continue to operate the Cash Management System, (ii) honor certain prepetition obligations related to the use of the Cash Management System, (iii) maintain existing business forms, and (iv) maintain existing bank accounts; (b) extend the time to comply with § 345(b), and (c) to schedule a final hearing.

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Commercial opinion summary, case decided on May 14, 2009 , LexisNexis #0709-038

In re General Growth Props.

Ruling
Debtor allowed to honor tenant obligations and banks ordered to honor check and transfer requests.
Procedural posture

The debtors moved for the entry of interim and final orders, pursuant to 11 U.S.C.S. §§ 105, 363(b), and 503(b), authorizing them to honor their tenant obligations and authorizing financial institutions to honor related checks and transfers.

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Commercial opinion summary, case decided on May 14, 2009 , LexisNexis #0709-001

In re Gen. Growth Props.

Ruling
Chapter 11 debtor's motions for financing and use of cash collateral granted as necessary to continued operations.
Procedural posture

Debtors filed voluntary petitions under chapter 11. The debtors filed a motion for entry of an order authorizing the debtors to, among other things, (1) obtain postpetition secured financing pursuant to 11 U.S.C.S. §§ 105(a), 362, and 364; (2) use cash collateral and grant adequate protection pursuant to 11 U.S.C.S. §§ 361 and 363; and (3) repay in full amounts owned under a certain prepetition secured loan agreement.

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Commercial opinion summary, case decided on May 14, 2009 , LexisNexis #0709-045