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In re Geo. W. Park Seed Co.

Movant creditor sought the allowance and payment of an administrative super-priority claim, under 11 U.S.C.S. § 507(a) and (b), on the basis that the adequate protection provided by the trustee for its claim secured by cash collateral had failed, causing it to suffer loss in its secured position. The chapter 11 trustee objected, asserting the creditor had released any such claim in a settlement agreement.
Ruling: 
Administrative super priority claim disallowed as released in settlement agreement.
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Commercial case opionion summary, case decided on December 29,2010, LexisNexis #0311-116

In re Gyro-Trac (USA) Inc.

A creditor of Chapter 11 debtor (objecting creditor) objected to confirmation of the debtor's plan. The debtor filed motions to consolidate its case with the associated bankruptcy cases of two related entities. The creditor filed a motion to prohibit the continued use of cash collateral and motions for relief from stay with respect to the debtor and one of the related entities.
Ruling: 
Plan confirmed over creditor's objection as feasible and paying unsecured creditor significantly more than they would receive in chapter 7.
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Commercial case opionion summary, case decided on December 22,2010, LexisNexis #0111-095

In re Cryptek Inc.

After a case was converted from Chapter 11 to Chapter 7, the Chapter 7 trustee and administrative expense claimants filed a motion to require the law firm that represented the debtor-in-possession to disgorge about $35,000 of the nearly $163,000 in approved fees and expenses that were paid to it. The trustee claimed that disgorgement was necessary to achieve equality of distribution among the Chapter 11 administrative claimants.
Ruling: 
Debtor's law firm ordered to disgorge prepetition fees paid by debtor in possession postpetition without bankruptcy court authorization.
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Commercial case opionion summary, case decided on December 21,2010, LexisNexis #0111-131

In re RMAA Real Estate Holdings LLC

In an involuntary Chapter 11 case, a bank filed a motion for sanctions against three petitioners and their counsel under Fed. R. Bankr. P. 9011 and 11 U.S.C.S. § 303(i)(2).
Ruling: 
Bank did not have standing to bring motion against petitioners and counsel for filing involuntary petition for improper purpose.
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Commercial case opionion summary, case decided on December 10,2010, LexisNexis #0111-072

In re Merrifield Town Ctr. Ltd. Pship

The court reopened proceedings on the debtor's previously granted motion to dismiss the involuntary petition, and the debtor's motion for attorney's fees and sanctions, pursuant to 11 U.S.C.S. § 303(i) and Fed. R. Bankr. P. 9011(b), against the newly-added petitioning creditors and their attorneys.
Ruling: 
Attorneys' fees awarded to debtor in involuntary petition that was dismissed as filed by creditors with claims subject to bona fide dispute.
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Commercial case opionion summary, case decided on December 03,2010, LexisNexis #0111-036

Circuit City Stores Inc. v. Mitsubishi Digital Elecs. Am. Inc. (In re Circuit City Stores Inc.)

Plaintiff, chapter 11 debtors and the former operators of retail electronics stores, moved for partial summary judgment as to their objection to claims of defendant creditor, one of its regular suppliers of electronic items. At issue was whether the creditor could both claim an administrative expense under 11 U.S.C.S. § 503(b)(9) and utilize the value of the same goods in a 11 U.S.C.S. § 547(c)(4) new value defense to a preference claim.
Ruling: 
Creditor could not both claim an administrative expense for value of goods and utilize the value of the goods in a new value defense to a preference claim.
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Commercial case opionion summary, case decided on December 01,2010, LexisNexis #0111-019

In re Oakwood Country Club Inc.

Debtor, the operator of a social club, submitted its disclosure statement for its plan of reorganization. The United States trustee objected to approval of the disclosure statement on the ground that the plan was not confirmable on its face.
Ruling: 
Disclosure statement for plan of reorganization not approved as plan was not confirmable due to inability of impaired creditors to vote.
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Commercial case opionion summary, case decided on November 22,2010, LexisNexis #0111-031

In re Deluxe Cleaners of Durham Inc.

This matter came before the court upon the Motion for Stay Pending Appeal filed by the chapter 7 trustee (the moving trustee) for the bankruptcy estate of two debtors that had a bankruptcy pending in the U.S. Bankruptcy Court for the Eastern District of North Carolina. The moving trustee sought to stay an order that allocated 100 percent of state court judgment proceeds to the estate of debtor in the instant bankruptcy.
Ruling: 
Stay pending appeal of order allocating state court judgment proceeds to estate denied absent showing of harm.
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Commercial case opionion summary, case decided on November 17,2010, LexisNexis #1210-139

In re RMAA Real Estate Holdings LLC

Debtor and others were plaintiffs in this matter. A real estate company and others were defendants. Certain creditors asserted in their complaint that a foreclosure sale held on September 13, 2010, was not valid because the September 10, 2010, order granting relief from the automatic stay was itself stayed by Fed. R. Bankr. P. 4001(a)(3) for 14 days. A creditor (bank) secured by a first deed of trust in debtor's real estate moved to dismiss.
Ruling: 
Foreclosure sale was valid where court had waived 14-day stay of order granting relief from stay.
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Commercial case opionion summary, case decided on November 15,2010, LexisNexis #1210-138

In re George W. Park Seed Co.

Debtors filed separate petitions under Chapter 11 of the Bankruptcy Code, and the court consolidated the cases for joint administration and appointed the same Chapter 11 trustee for all cases. The trustee filed a motion seeking permission under 11 U.S.C.S. § 363 to use cash collateral through January 2011, a bank filed an objection to the trustee's motion, and a person who was part owner of the debtors joined the bank's objection.
Ruling: 
Trustee granted permission to use cash collateral without provision of additional adequate protection to creditor.
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Commercial case opionion summary, case decided on November 12,2010, LexisNexis #1210-043

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