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In re American Media Inc.

Debtors-in-possession, publishers of newspapers and magazines, moved for a confirmation order, to effectuate confirmation of their amended joint prepackaged plan of reorganization under chapter 11, and to approve the adequacy of their disclosure statement, solicitation of votes, and the forms of ballots and the election.
Ruling: 
Chapter 11 plan was confirmable despite rejection and deemed rejection by two classes of creditors.
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Commercial case opionion summary, case decided on December 20,2010, LexisNexis #0211-029

In re JMK Constr. Group Ltd.

A jury sitting in the U.S. District Court for the Southern District of New York returned a verdict against debtors, a corporation and three individuals, and the debtors declared Chapter 11 bankruptcy and sought permission under 11 U.S.C.S. § 327 to hire a law firm, special litigation counsel, and an accountant to represent them in their bankruptcy cases. The United States Trustee and a judgment creditor opposed the debtors' requests.
Ruling: 
Debtors could not seek to retain joint counsel or accountants where possible contribution claim created conflict.
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Commercial case opionion summary, case decided on December 09,2010, LexisNexis #0111-001

In re American Media Inc.

Debtors, a media corporation and affiliated businesses, filed petitions under Chapter 11 of the Bankruptcy Code and continued to operate their businesses as debtors in possession, pursuant to 11 U.S.C.S. §§ 1107(a) and 1108. The debtors sought interim and final orders authorizing them to use of cash collateral and providing adequate protection to a prepetition agent and prepetition lenders.
Ruling: 
Debtor in possession allowed to use fixed amount of cash collateral to operate business.
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Commercial case opionion summary, case decided on December 06,2010, LexisNexis #0111-133

In re BH S&B Holdings LLC

The United States Trustee (UST) filed a motion to convert the debtors' Chapter 11 cases to cases under Chapter 7 pursuant to 11 U.S.C.S. § 1112(b)(4)(A) and (J), alleging that the debtors' monthly operating reports were misleading and/or deficient, their cases were administratively insolvent, and they failed to timely file a reorganization plan and disclosure statement.
Ruling: 
Case converted to chapter 7 given continuing losses and no likelihood of rehabilitation.
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Commercial case opionion summary, case decided on November 18,2010, LexisNexis #1210-059

McHale v. Boulder Capital LLC (In re 1031 Tax Group LLC)

In two earlier opinions, partial summary judgment was awarded in favor of plaintiff, a Chapter 11 trustee of a liquidating trust, in an 11 U.S.C.S. § 548(a) fraudulent transfer action against defendants. The court addressed the calculation of prejudgment interest on the amounts recoverable. Both parties agreed that the trustee was entitled to interest accruing from the commencement date of the adversary proceeding, but disagreed on the rate.
Ruling: 
Trustee entitled to prejudgment interest at prime rate and postjudgment interest at federal judgment rate on fraudulent transfer judgment.
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Commercial case opionion summary, case decided on November 01,2010, LexisNexis #1110-130

In re Oldco M Corp.

A bankruptcy debtor was remediating groundwater contamination at its manufacturing facility, and the debtor sold the facility to a purchaser which continued the remediation efforts. A state environmental agency moved for allowance of a priority administrative expense under 11 U.S.C.S. § 503(b)(1)(A) for future remediation at the facility.
Ruling: 
State environmental agency granted administrative expense for minimal remediation costs incurred prior to debtor's sale of subject property.
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Commercial case opionion summary, case decided on September 07,2010, LexisNexis #0910-116

McHale v. Boulder Capital LLC (In re 1031 Tax Group LLC)

The chapter 11 trustee brought an adversary complaint against defendant lenders to avoid loan payments made to the lenders by the former chief executive officer (CEO) of the debtors and his affiliates, as fraudulent transfers under 11 U.S.C.S. § 548(a). The trustee moved for seeks partial summary judgment. He alleged that approximately $29 million was misappropriated from the debtors and fraudulently conveyed to the lenders.
Ruling: 
Transfers made by debtors' CEO with intent to defraud were avoidable.
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Commercial case opionion summary, case decided on August 27,2010, LexisNexis #0910-089

Togut v. RBC Dain Correspondent Servs. (In re S.W. Bach & Co.)

Plaintiff, chapter 7 Trustee of debtor, a former broker-dealer, sought partial summary judgment under Fed. R. Civ. P. 56, made applicable by Fed. R. Bankr. P. 7056, against defendant, a broker-dealer (hereafter, the "broker-dealer"), on the Trustee's constructive fraudulent transfer claim under 11 U.S.C.S. § 548(a)(1)(B) (Count Nine). The broker-dealer in turn sought denial of partial summary judgment and a dismissal of Count Nine.
Ruling: 
Transfer by debtor's clearing agent of customer accounts to broker-dealer without consideration was a "transfer of an interest of the debtor in property" and a constructive fraudulent conveyance.
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Commercial case opionion summary, case decided on August 18,2010, LexisNexis #0910-055

In re Project Orange Assocs. LLC

Debtor LLC filed a petition under chapter 11 of the Bankruptcy Code on April 29, 2010, and on May 20, 2010, a law firm filed an application seeking appointment as the debtor's general bankruptcy counsel under 11 U.S.C.S. § 327(a). The United States Trustee (UST) filed an objection to the firm's application, claiming that the firm's ongoing relationship with the debtor's largest creditor created a conflict of interest.
Ruling: 
Firm's application to serve as debtor's counsel denied due to ongoing relationship with largest creditor.
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Commercial case opionion summary, case decided on June 23,2010, LexisNexis #0910-036

In re Sweet N Sour 7th Ave. Corp.

Movant, the landlord and a creditor of the debtor, moved the court for an order modifying the automatic stay to permit the it to enforce a prepetition warrant of eviction it had obtained against the debtor, terminating the lease. The landlord also sought to apply the debtor's security deposit to past-due rent, arguing that it was entitled to exercise the right of recoupment as to the deposit.
Ruling: 
Stay lifted to allow debtor to vacate eviction order and possibly assume lease.
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Commercial case opionion summary, case decided on June 18,2010, LexisNexis #0810-110

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