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TSIC Inc. v. Thalheimer (In re TSIC Inc.)

Ruling
Severance payment to former director and CEO during two-year lookback period was a transfer for less than equivalent value and avoidable.
Procedural posture

Debtor filed an adversary proceeding seeking to avoid a $ 6,055,000 severance payment made to a former director and chief executive officer (CEO). Debtor filed a motion for summary judgment requesting the court find that the payment was an avoidable fraudulent transfer pursuant to 11 U.S.C.S. § 548(a)(1)(B)(i), (ii)(IV). The CEO filed a cross-motion for summary judgment.

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Commercial opinion summary, case decided on April 28, 2010 , LexisNexis #0710-021

In re Midway Games Inc.

Ruling
Creditor not entitled to administrative expense claim where sale of debtor's executory contracts satisfied all outstanding obligations.
Procedural posture

Movant, the creditor that purchased assets of the debtors-in-possession, filed a motion seeking the allowance and payment of an administrative expense pursuant to 11 U.S.C.S. § 503(b)(1)(A).

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Commercial opinion summary, case decided on April 05, 2010 , LexisNexis #0610-047

Miller v. Westfield Steel Inc. (In re Elrod Holdings Corp.)

Ruling
Payments to steel company were not preferential due to ordinary course of business exception.
Procedural posture

Debtor seat companies filed a petition seeking protection under chapter 7 of the United States Bankruptcy Code. Plaintiff chapter 7 Trustee brought an adversary proceeding against defendant steel company, alleging that payments made to the steel company were preferential and should be avoided. The steel company moved for summary judgment.

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Commercial opinion summary, case decided on March 31, 2010 , LexisNexis #0610-055

In re Nortel Networks Corp.

Ruling
Motion for certification of order enforcing stay against creditors in UK proceedings for immediate appeal denied as not advancing bankruptcy case.
Procedural posture

Two claimants, a trustee of a United Kingdom (U.K.) pension plan and the Board of the Pension Protection Fund, requested the court to certify its order granting the debtors' motion for entry of an order enforcing the automatic stay against the claimants with respect to U.K. proceedings for immediate appeal to the United States Court of Appeals for the Third Circuit pursuant to 28 U.S.C.S. § 158(d)(2).

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Commercial opinion summary, case decided on March 18, 2010 , LexisNexis #0610-030

Mervyns LLC v. Lubert-Adler Group IV LLC (In re Mervyns Holdings LLC)

Ruling
Alleged fraudulent transfer by debtor to corporate parent was not protected settlement payment.
Procedural posture

Defendant, a former corporate parent of the debtor, filed a motion to dismiss the adversary proceeding brought against it by plaintiff, the debtor's committee, pursuant to Fed. R. Civ. P. 8, 9(b), and 12(b)(6), made applicable by Fed. R. Bankr. P. 7008, 7009, and 7012. of the Federal Rules of Bankruptcy Procedure.

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Commercial opinion summary, case decided on March 17, 2010 , LexisNexis #0510-057

Mervyns LLC v. Lubert-Adler Group IV LLC (In re Mervyns Holdings LLC)

Ruling
Subsequent transferee claim by committee of unsecured creditors against bank dismissed.
Procedural posture

Plaintiff unsecured creditors committee (the Committee) filed an adversary action to recover alleged damages from the financial transactions surrounding the sale of the debtor's assets in a private equity transaction. Defendant bank filed a motion to dismiss and the Committee filed a motion for leave to file a second amended complaint.

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Commercial opinion summary, case decided on March 12, 2010 , LexisNexis #0510-024

In re Nortel Networks Corp.

Ruling
Stay enforced against UK pension trust and pension board.
Procedural posture

Debtors sought an order pursuant to 11 U.S.C.S. § 362(a)(1), (a)(6), enforcing the automatic stay against two parties, a U.K. pension trust limited (the Trustee) and the Board of the Pension Protection Fund (the PPF) (collectively, the Claimants), with respect to certain U.K. Administrative Proceedings (the U.K. Proceedings) initiated by the U.K. Pensions Regulator (TPR).

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Commercial opinion summary, case decided on March 09, 2010 , LexisNexis #0510-077

Official Comm. of Unsecured Creditors of Midway Games Inc. v. National Amusements Inc. (In re Midway Games Inc.)

Ruling
Unsecured creditors' committee's claims against debtor's board members dismissed under state law.
Procedural posture

Plaintiff, official committee of unsecured creditors (the committee), brought this adversary action to recover alleged damages to the estate of debtor resulting from several financial transactions. Motions to dismiss were filed by all of the defendant groups.

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Commercial opinion summary, case decided on January 29, 2010 , LexisNexis #0410-019

In re Intermet Corp.

Ruling
Plan could be implemented as debtor had satisfied all necessary pre-conditions.
Procedural posture

Pending before the court were multiple motions arising from the inability of the debtors to proceed with the sale of their assets which was an important element of the implementation of their confirmed plan of reorganization.

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Commercial opinion summary, case decided on September 02, 2009 , LexisNexis #1009-030

Official Comm. of Unsecured Creditors v. Perseus Partners VII LP (In re Distributed Energy Sys. Corp.)

Ruling
Debtor's investment banker's transaction fee disallowed.
Procedural posture

Plaintiff, the Official Committee of Unsecured Creditors, on behalf of a debtor, brought an adversary proceeding against defendant, an entity (creditor) that provided debtors with cash. Debtors' investment banker received its monthly advisory fees, totaling $ 300,000 and requested an additional $ 1,984,850 in transaction fees, plus expenses of $ 41,581. The Committee objected to the approval and payment of the transaction fees.

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Commercial opinion summary, case decided on May 18, 2009 , LexisNexis #0709-077