Minnesota

Mesaba Aviation Inc. v. Aircraft Mech. Fraternal Assn (In re Mesaba Aviation Inc.)

Chapter 11 debtor in possession filed a motion under Fed. R. Civ. P. 65(a), as incorporated by Fed. R. Bankr. P. 7065, for a preliminary injunction, seeking an injunction against its unions' exercise of self-help, i.e., striking, in the wake of debtor's court-authorized rejection of its collective bargaining agreements pursuant to 11 U.S.C. § 1113 and debtor's subsequent imposition of modified terms of employment.
Ruling: 
Injunction issued to prevent strike against debtor airline by unions after rejection of collecitve bargaining agreement.
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In re Harwick

The United States Trustee ("UST") moved to dismiss the debtor's chapter 7 case pursuant to 11 U.S.C. § 707(b) on the grounds that the filing constituted a substantial abuse of the provisions of chapter 7.
Ruling: 
Debtor entitled to claim standard amount for vehicle owner expense.
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Velde v. Kirsch (In re Miller)

An involuntary chapter 7 petition was filed against debtor. Debtor converted the case to chapter 11. The case was later converted to chapter 7. The trustee commenced an adversary proceeding seeking to avoid a payment from debtor to a soybean seller of $44,955 as a preferential transfer. Pending was the trustee's motion for partial summary judgment. The complaint also sought to avoid a separate transfer, but it was not included in the motion.
Ruling: 
Subsequent new value defense to avoidance not available where preferential payment was made to cure a bounced check.
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In re Espey

A chapter 7 trustee objected to a debtor's claimed exemption under 11 U.S.C. § 522(d)(10)(A) of state and federal tax refunds under the Internal Revenue Service Earned Income Credit ("EIC") and Minnesota Department of Revenue Working Family Credit ("WFC") public assistance programs.
Ruling: 
Refunds received under IRS Earned Income Credit and state tax law were not "local" public assistance benefits and were not exempt.
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OneBeacon Amer. Ins. Co. v. A.P.I. Inc.

Appellant insurer challenged an order of the bankruptcy court, which confirmed a plan of reorganization of appellee debtor, a distributor of insulation that contained asbestos.
Ruling: 
Plan containing trust succeeding to debtor's rights in asbestos insurance policies confirmed.
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In re Hyman Freightways Inc.

The chapter 7 trustee, purportedly under 11 U.S.C. § 726(a), filed a motion seeking a refund of professional fees from three groups of professionals who provided services to the debtor during the time the debtor was in chapter 11.
Ruling: 
Court denied trustee's motion seeking refund of professional fees since payments were authorized by Bankruptcy Code and approved by court.
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In re Mesaba Aviation Inc.

A bankruptcy debtor, a regional airline whose only customer was a network carrier which was also in bankruptcy, proposed to modify collective bargaining agreements with unions representing the debtor's employees to reduce the debtor's labor costs in reorganization. After the unions rejected the debtor's proposal, the debtor moved for authority to reject the collective bargaining agreements pursuant to 11 U.S.C. § 1113.
Ruling: 
Debtor was denied motion to reject collective bargaining agreements despite compliance with most of section 1113 requirements since debtor had not provided union with software model for making its projections.
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In re Kurtzahn

The debtor filed a motion under 11 U.S.C. § 362(c)(3)(B) — one of the provisions added to the Bankruptcy Code by the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, Pub. L. No. 109-8 — to extend the automatic stay beyond the 30-day limit.
Ruling: 
Debtor was denied an extension of an automatic stay since the debtor could not prove the second filing's plan was feasible and the filing was not made in bad faith.
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