- 11 U.S.C.
In re LTAP US LLLP
Feb
18
2011
Ruling
Motions for use of cash collateral and debtor-in-possession financing denied due to debtor's insufficient assets.
Procedural posture
Three motions were pending, all of which were determinative of debtor's reorganization prospects. The motions were: (1) debtor's motion for an order authorizing debtor's use of cash collateral; (2) a creditor's motion for relief from the automatic stay, and debtor's emergency motion for post-petition secured financing (the debtor-in-possession (DIP) motion).
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Court
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In re Nortel Networks Corp.
Jan
21
2011
Ruling
Relief from stay to compel arbitration denied where dispute in question was not arbitrable.
Procedural posture
Debtors, a corporation and affiliated businesses, declared Chapter 11 bankruptcy and obtained approval to sell most of their assets under the court's supervision. The corporation sold its carrier voice over IP and application solutions ("CVAS") business to a buyer, and after the court approved the sale, the buyer filed a motion under 11 U.S.C.S. § 362(d) for relief from the automatic stay so it could compel the debtor to arbitrate a dispute.
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Court
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In re Clearpoint Bus. Res. Inc.
Dec
30
2010
Ruling
Termination of agreement based on amendments thereto did not violate stay.
Procedural posture
Debtors moved to enjoin an alleged violation of the automatic stay by a contracting party. Debtors invoked 11 U.S.C.S. §§ 105, 362, 541 to halt the contracting party's claim that pre-petition agreements between debtors and the contracting party terminated by their own terms and therefore the automatic stay was not implicated. A hearing was held.
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Court
:
- 11 U.S.C.
In re Caribbean Petroleum Corp.
Dec
08
2010
Ruling
Petroleum Marketing Practices Act did not prevent debtor from rejecting agreements with service station franchisees.
Procedural posture
The Chapter 11 debtors filed a motion pursuant to 11 U.S.C.S. § 365 to reject any or all of their agreements with service station franchisees upon the contemplated sale of substantially all of the debtors' assets. The franchisees objected, alleging that the Petroleum Marketing Practices Act (PMPA), 15 U.S.C.S. § 2801 et seq., extinguished the debtors' rights under the Bankruptcy Code to bring the rejection motion.
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Court
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- 11 U.S.C.
In re Vectirx Corp.
Nov
04
2010
Ruling
Sale of assets free and clear approved along with bidding procedures and terms of purchase agreement.
Procedural posture
Debtor sought an order (i)--(a) approving sale of certain of debtor's assets free and clear of liens, claims, encumbrances, and other interests pursuant to 11 U.S.C.S. §§ 105, 363(b), (f), (m); and (b) authorizing assumption, assignment, and sale of certain executory contracts and unexpired leases pursuant 11 U.S.C.S. §§ 363, 365; (ii) approving certain bidding procedures, break-up fee, and other protections, and (iii) granting related relief.
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Court
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In re FKF Madison Park Group Owner LLC
Sep
03
2010
Ruling
No bar to joinder of additional creditors exists in involuntary cases regardless of good faith of petitioning creditors.
Procedural posture
Alleged debtors filed motions to dismiss the involuntary bankruptcy petitions (IPs) filed by four creditors. Additional creditors joined in the IPs. The alleged debtors argued that the IPs should be dismissed as they had been filed in bad faith and that the bar to joinder doctrine should be applied to the case. Consideration was given specifically to the joinder issue.
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Court
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- 28 U.S.C.
Pinchanski v. Finn
Jun
10
2010
Ruling
Delaware challenge to Massachusetts fraudulent transfer case that was removed to bankruptcy court transferred to Massachusetts bankruptcy court.
Procedural posture
Debtor was the subject of an involuntary bankruptcy filing in Massachusetts, to which the chapter 7 trustee then removed, from the state court where it was filed, a fraudulent conveyance and breach of fiduciary duty case against insiders. When the trustee then removed a state court case filed by such insiders in Delaware to the court and moved to transfer to the Massachusetts bankruptcy court, the insiders asked the court to abstain.
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Court
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- FRBP
Santa Fe Minerals Inc. v. BEPCO LP (In re 15375 Meml Corp.)
May
17
2010
Ruling
Sanctions assessed against intervenors and attorneys who misused bankruptcy process.
Procedural posture
Debtors brought adversary claims against defendant, an opposing party in underlying litigation. Intervenors, parties related to the debtor who faced substantial liability, up to $ 189 million, in the underlying action. Following reversal of the bankruptcy court's orders on appeal, the issue before the bankruptcy court was whether to impose sanctions against parties and lawyers, and if so, which ones.
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Court
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DynAmerica Mfg. LLC v. Johnson Oil Co. LLC (In re DynAmerica Mfg. LLC)
May
10
2010
Ruling
Proceeding for avoidance of small claim dismissed as not brought in venue where creditor resided.
Procedural posture
Plaintiff debtor brought this adversary proceeding to avoid and recover a preferential transfer pursuant to 11 U.S.C.S. §§ 547, 550. Defendant transferee filed a Fed. R. Civ. P. 12(b)(3) motion seeking to dismiss the adversary proceeding for improper venue based on 28 U.S.C.S. § 1409(b).
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Court
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Majestic Star Casino v. City of Gary (In re Majestic Star Casino LLC)
Apr
28
2010
Ruling
Extension of stay granted with respect to action by city against directors, officers and employees of debtor that would interfere with reorganization.
Procedural posture
Plaintiff debtors sought the extension of the automatic stay or, in the alternative, a preliminary injunction against defendant, the City of Gary, Indiana (the City) pursuant to 11 U.S.C.S. §§ 362(a)(1), (3), 105(a). The City had brought an action in the Lake Circuit Superior Court of Indiana (the "Indiana Court" and the "Action") against present and former directors, officers and employees of debtors and affiliates (State Court Defendants).
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Court
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