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In re Bermuda Bay LLC

Bankruptcy debtors owned real property which was part of a resort development and were formulating a reorganization plan of which a key component was the sale of vacation ownership interests in the resort. A creditor secured by a portion of the property objected to the debtors' disclosure statement on the ground that it contained inadequate information.
Ruling: 
Disclosure statement not approved due to inadequate information.
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Commercial case opionion summary, case decided on December 31,2009, LexisNexis #0210-095

Englander v. Hekman Furniture Co. (In re Mastercraft Interiors Ltd.)

Plaintiffs, a bankruptcy plan administrator for a chapter 11 debtor and a chapter 11 debtor, filed an adversary proceeding against defendant furniture company, seeking a determination that three payments the debtors made to the furniture company were avoidable transfers under 11 U.S.C.S. § 547, and an order disallowing a claim in the amount of $ 475,678 which the company filed against their bankruptcy estates.
Ruling: 
Preference period payments were not avoidable due to subsequent new value and ordinary course of business exceptions.
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Commercial case opionion summary, case decided on December 30,2009, LexisNexis #0210-120

LaRosa v. Pecora

Defendants, debtors, moved to stay entry of judgment by the court pending the determination of the amount of money that plaintiffs, brothers, had or would obtain through two bankruptcy proceedings still pending in the Northern District of West Virginia.
Ruling: 
Collection action for which stay was lifted could proceed and did not need to await outcome of debtors' bankruptcies.
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Commercial case opionion summary, case decided on December 22,2009, LexisNexis #0110-041

In re Wynne Residential Asset Mgmt. LLC

A chapter 7 debtor filed an application and amended application for compensation to a law firm and an attorney (the applicants) for fees and expenses incurred while representing the debtor in possession (DIP) during the chapter 11 phase of the bankruptcy estate. A bankruptcy administrator objected, arguing that the applicants were not "disinterested persons" as defined in 11 U.S.C.S. § 101(14) and as required by 11 U.S.C.S. § 327.
Ruling: 
Fees of counsel to debtor in possession reduced by half due to representation of debtor's principal and other insiders.
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Commercial case opionion summary, case decided on December 18,2009, LexisNexis #0210-036

Century Forest Prods. V. H.W. Indus. (In re Century Forest Prods.)

Plaintiff, a chapter 11 corporate debtor, filed an adversary proceeding against defendant, a Florida corporation, claiming that it was entitled to recover a prepetition account receivable from the Florida corporation in the amount of $ 3,593. The Florida corporation was served at its address in Florida, but did not file an answer or other responsive pleading. The debtor filed a motion for entry of default and default judgment.
Ruling: 
Bankruptcy court abstained from hearing state law collection proceeding.
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Commercial case opionion summary, case decided on December 15,2009, LexisNexis #0410-136

In re Fountain Powerboat Indus.

The major creditor of bankruptcy debtors was the successful bidder at an auction sale of substantially all of the debtors' assets, but the debtors obtained approval for postpetition financing and filed a plan of reorganization. After the bankruptcy court declined to approve the auction sale, the creditor moved to terminate the exclusivity periods of 11 U.S.C.S. § 1121 for the debtors to file a plan and solicit acceptances.
Ruling: 
Creditor's motion to terminate exclusivity period denied absent showing of cause.
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Commercial case opionion summary, case decided on December 04,2009, LexisNexis #0110-061

In re Highway 751 Partners LLC

Before the court was the motion filed by a bank (deed of trust holder) for a determination that real property was not property of debtor's estate, and alternative motion for relief from the automatic stay.
Ruling: 
Real property remained property of the estate where debtor filed petition before state court set new parameters of sale.
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Commercial case opionion summary, case decided on December 03,2009, LexisNexis #0110-086

In re Circuit City Stores Inc.

Bankruptcy debtors which operated consumer electronics retail outlets objected to administrative expense claims filed by certain claimants, and the debtors sought authority under 11 U.S.C.S. § 558 to set off the amounts of receivables due from the claimants against the claimants' administrative expenses.
Ruling: 
Debtors allowed to setoff receivables against administrative expense claims.
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Commercial case opionion summary, case decided on December 03,2009, LexisNexis #0110-091

Wells Fargo Funding v. Gold

Appellants, four different mortgage companies, purchased separate $ 2,950,000 mortgage loans covering the same residential property. The borrower and several of his corporate affiliates filed voluntary chapter 11 petitions. The bankruptcy court for the Eastern District of Virginia granted appellee bankruptcy trustee's motion to authorize the sale of that residential property free and clear of liens or other interests. The companies appealed.
Ruling: 
Bankruptcy court did not err in holding trustee's strong arm powers could be used to avoid equitable lien and constructive trust.
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Commercial case opionion summary, case decided on November 24,2009, LexisNexis #1209-091

In re Fitness Mgmt. Group

The State of North Carolina brought an action in a State court against a bankruptcy debtor alleging that the debtor committed unfair and deceptive trade practices by failing to maintain adequate bonds for its health clubs. The State moved for a declaration of exemption from the automatic stay under 11 U.S.C.S. § 362(b)(4) based on the State's exercise of its police and regulatory powers.
Ruling: 
State enforcement of health club bond requirements against debtor was subject to police and regulatory power exception from stay.
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Commercial case opionion summary, case decided on November 23,2009, LexisNexis #1209-112

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