Judge Benavides

In re Halo Wireless v. Alenco Communs. Inc. (In re Halo Wireless Inc.)

Debtor, a small cellular company, filed a voluntary chapter 11 petition, removed state court suits filed against it by local phone companies, and sought to have them and state public utilities' commissions' (PUC) actions transferred to the United States Bankruptcy Court for the Eastern District of Texas, which ordered the suits remanded and found the PUC actions excepted from the automatic stay under § 362(b)(4). Debtor appealed.
Ruling: 
Public utilities commission suits were excepted from stay as actions by governmental units in furtherance of regulatory or police powers.
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Commercial case opionion summary, case decided on June 18,2012, LexisNexis #0712-040

Cage v. Wyo-Ben Inc. (In re Ramba Inc.)

Two months before bankruptcy, a buyer received the debtor's assets free of liens, paid off the debtor's under secured lender, and paid the rest of the consideration to 10 defendant unsecured creditors. The debtor paid an 11th defendant unsecured creditor. The district court entered summary judgment against plaintiff trustee on an 11 U.S.C. § 547(b) preference action. The trustee appealed.
Ruling: 
Payment to an unsecured creditor was an avoidable transfer since the payment was not made according to ordinary business terms but rather was made on invoices older than the industry standard for making payment of 120 days.
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Cage v. Wyo-Ben Inc. (In re Ramba Inc.)

Two months before bankruptcy, a buyer received the debtor's assets free of liens, paid off the debtor's under secured lender, and paid the rest of the consideration to 10 defendant unsecured creditors. The debtor paid an 11th defendant unsecured creditor. The district court entered summary judgment against plaintiff trustee on an 11 U.S.C. § 547(b) preference action. The trustee appealed.
Ruling: 
Sale of debtor's assets was not an avoidable transfer since property for which the debtor had no equitable interest is not estate property.
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