Judge Cox

In re JS II LLC

Pending before the court was debtors'Application for Authority to Employ a certain law firm as Special Litigation Counsel to represent debtors in litigation pending in state court. Debtors' application drew an objection from the plaintiffs and counter-defendants in the litigation (hereafter referred to as plaintiffs).
Ruling: 
Law firm defending members of debtor LLC in state court action approved as defense counsel for debtor in that same action.
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In re Kobus

The debtor filed a motion to convert her chapter 7 case to a chapter 13. The chapter 7 trustee objected. He alleges that the debtor failed to disclose that she transferred property to her father within one year of filing for bankruptcy relief. The debtor's motion followed the trustee's discovery of the transfer.
Ruling: 
Conversion to chapter 13 denied for lack of good faith.
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In re Flores

Movant creditor filed for relief from the automatic stay pursuant to 11 U.S.C. § 362(d) and an objection to respondent debtor's chapter 13 plan based on the debtor's lack of personal liability and lack of privity.
Ruling: 
Court denied automatic stay relief and overruled plan confirmation objection since debtor could include creditor's claim against debtor's property interest despite debtor's lack of privity with creditor.
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NSC Creditor Trust v. BSI Alloys Inc. (In re Natl Steel Co.)

Plaintiff trust brought an adversary proceeding against defendant contractor, seeking to avoid, as preferences, prepetition payments made by the chapter 11 debtor. The contractor asserted a new value defense under 11 U.S.C. § 547(c)(4) and an ordinary court defense under 11 U.S.C. § 547(c)(2). The trust moved for summary judgment as to three transfers. The contractor also moved for summary judgment.
Ruling: 
Avoidance of prepetition payments was denied since the transfers were deemed made in the ordinary course of business.
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In re Issaac

The debtor's chapter 13 plan proposed to satisfy a balloon payment on her mortgage in full, on or before the payment's due date, by way of a refinance or sale of her home. The plan further provided that if the balloon payment was not satisfied on or before its due date, the stay would automatically modify and the creditor would be allowed to pursue its remedies. The debtor moved for confirmation of her plan and the creditor objected.
Ruling: 
Debtor's proposed chapter 13 plan was denied confirmation since the partial liquidation plan was too speculative to be feasible.
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