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Miller v. Barenberg (In re Bernard Techs. Inc.)

Ruling
Transfers by debtor's non-debtor subsidiary were not avoidable.
Procedural posture

In an adversary proceeding, plaintiff trustee sought to avoid and recover pre-petition transfers from (collectively) defendant corporation. The trustee asked the federal district court to avoid payments to the corporation pursuant to 11 U.S.C.S. §§ 547, 548, 544(b), and 551, and to disallow the claims that the corporation filed against the debtor pursuant to 11 U.S.C.S. § 502(d).

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Commercial opinion summary, case decided on December 05, 2008 , LexisNexis #0109-103

In re Buscovs Inc.

Ruling
Bank's objection to sale of substantially all assets, including private credit card program, overruled.
Procedural posture

Debtors proposed a sale of substantially all of their assets, to include an assignment of a private label credit card program agreement between the debtors and a bank. The bank objected to the sale on the ground that 11 U.S.C.S. § 365(c)(2) prohibited the assignment of the executory contract to extend debt financing or financial accommodations to or for the benefit of the debtors.

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Commercial opinion summary, case decided on November 21, 2008 , LexisNexis #0109-007

In re Distributed Energy Sys. Corp.

Ruling
Debtor's motion to assume and assign memo of understanding and confidentiality agreement with creditor granted.
Procedural posture

The debtors filed for relief under chapter 11 of the Bankruptcy Code, and in July 2008, the court approved the sale of the assets of one debtor to a purchaser. The debtors filed a motion for authority to assume and assign a memorandum of understanding (MOU) between the debtor and a company and a confidentiality agreement between the debtor and another company, pursuant to 11 U.S.C.S. § 365.

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Commercial opinion summary, case decided on October 17, 2008 , LexisNexis #1108-080

Henderson v. Powermate Holding Corp. (In re Powermate Holding Corp.)

Ruling
Claims under Worker Adjustment and Retraining Notification Act were not entitled to administrative expense priority status.
Procedural posture

Plaintiff former employee filed a putative class action against defendant chapter 11 debtors, alleging that they violated employees' rights under the Worker Adjustment and Retraining Notification Act (WARN Act), 29 U.S.C.S. § 2101 et seq. The employee claimed that any damages employees recovered were entitled to administrative expense status under 11 U.S.C.S. § 503(b)(1)(A)(ii). The debtors opposed the employee's claim.

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Commercial opinion summary, case decided on October 10, 2008 , LexisNexis #1108-041

In re TSIC Inc.

Ruling
Settlement between unsecured creditors' committee and purchaser of assets did not violate absolute priority rule and was approved.
Procedural posture

The United States Trustee objected to a settlement, proposed pursuant to Fed. R. Bankr. P. 9019 and 11 U.S.C.S. § 105(a), between the official committee of unsecured creditors for a chapter 11 debtor and the potential and ultimately approved purchaser of all of the debtor's assets.

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Commercial opinion summary, case decided on August 18, 2008 , LexisNexis #0908-089

In re Whitehall Jewelers Holdings Inc.

Ruling
Consigned goods in debtor's possession were not property of the estate and not subject to bankruptcy sale.
Procedural posture

Bankruptcy debtors, nationwide specialty retailers of fine jewelry, obtained an order permitting the debtors to sell substantially all of their assets, but vendors which consigned goods to the debtors asserted that the debtors did not own, and thus could not sell, the consigned goods. The debtors filed a supplemental motion of sale to allow the debtors to sell the consigned goods pursuant to 11 U.S.C.S. § 363(f)(4).

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Commercial opinion summary, case decided on July 28, 2008 , LexisNexis #0808-116

SN Liquidation Inc. v. Incon Intl Inc. (In re SN Liquidation Inc.)

Ruling
Creditor violated stay by prosecuting fraud and negligence action against debtor's management.
Procedural posture

Defendant debtors filed a motion for a preliminary injunction to enjoin plaintiff creditor's pending fraud and negligent misrepresentation action against the non-debtor individuals who were members of the debtors' management.

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Commercial opinion summary, case decided on June 02, 2008 , LexisNexis #0708-040

In re Exaeris Inc.

Ruling
Sale of substantially all assets to creditor, including causes of action against that creditor, denied.
Procedural posture

A corporate debtor filed a petition under chapter 11 in July 2007, and six months later, it filed an expedited motion seeking an order authorizing the sale of substantially all its assets to a creditor or the creditor's designee. A committee of unsecured creditors took the lead in presenting the motion, and a bank that was also a creditor opposed the motion.

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Commercial opinion summary, case decided on January 15, 2008 , LexisNexis #0208-041

In re NationsRent Inc.

Ruling
Creditors holding make whole sale claims were entitled to priority over senior note holders'claims.
Procedural posture

The unsecured creditors liquidating trust sought an order approving an initial distribution to the general unsecured creditors. The trust held approximately $19.37 million in cash and sought to make an initial distribution of $19 million. Objections to the order of distribution questioned whether the senior notes held by sellers of assets to the debtors were subordinated to the make-whole sale claims and the assignee of claims.

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Commercial opinion summary, case decided on January 09, 2008 , LexisNexis #0208-094

In re Carney

Ruling
Chapter 13 case dismissed due to debtors' understatement of income and ability to repay unsecured debt.
Procedural posture

Movant, the United States Trustee ("UST"), sought an order dismissing debtors'chapter 7 case for abuse under 11 U.S.C. § 707(b)(1) and (3). At issue was whether the totality of debtors'circumstances were such that they were not entitled to relief under chapter 7.

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Consumer opinion summary, case decided on December 05, 2007 , LexisNexis #0108-048