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In re LTAP US LLLP

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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Commercial opinion summary, case decided on February 18, 2011 , LexisNexis #0311-112

In re Nortel Networks Corp.

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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Commercial opinion summary, case decided on January 21, 2011 , LexisNexis #0211-039

In re Clearpoint Bus. Res. Inc.

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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Commercial opinion summary, case decided on December 30, 2010 , LexisNexis #0111-107

In re Caribbean Petroleum Corp.

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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Commercial opinion summary, case decided on December 08, 2010 , LexisNexis #0111-118

In re Vectirx Corp.

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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Commercial opinion summary, case decided on November 04, 2010 , LexisNexis #0111-044

In re FKF Madison Park Group Owner LLC

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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Commercial opinion summary, case decided on September 03, 2010 , LexisNexis #1010-005

Pinchanski v. Finn

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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Consumer opinion summary, case decided on June 10, 2010 , LexisNexis #0810-136

Santa Fe Minerals Inc. v. BEPCO LP (In re 15375 Meml Corp.)

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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Commercial opinion summary, case decided on May 17, 2010 , LexisNexis #0710-102

DynAmerica Mfg. LLC v. Johnson Oil Co. LLC (In re DynAmerica Mfg. LLC)

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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Commercial opinion summary, case decided on May 10, 2010 , LexisNexis #0710-064

Majestic Star Casino v. City of Gary (In re Majestic Star Casino LLC)

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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Commercial opinion summary, case decided on April 28, 2010 , LexisNexis #0910-037