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Delaware Bankruptcy Litigation Information on Corporate Bankruptcy Proceedings in Delaware and Throughout the United States

Category Archives: Opinions

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Orchard Supply – The Trouble With Motions to Dismiss

Posted in Opinions

Summary In a 14 page decision released May 12, 2015, Judge Sontchi of the Delaware Bankruptcy Court illustrated why even perfect motions to dismiss may not be worth filing.  Judge Sontchi’s opinion is available here (the “Opinion”).  The Opinion was issued in the adversary proceeding Alamo Group, LLC and Kirin Alamo, LLC v. A&G Realty Partners,… Continue Reading

Court Reiterates that Debtor’s Setoff Rights Trump those of Claimant

Posted in Opinions

In the bankruptcy case of ADI Liquidation, Inc. (f/k/a AWI Delaware, Inc.), Bankr. No. 14-12092 (KJC), the Court considered a motion by creditor Western Family Foods, Inc. (“WFFI”) for relief from the automatic stay to exercise its setoff rights against its general unsecured claim against ADI Liquidation, Inc., et al. (the “Debtors”).  Meanwhile, the Debtors… Continue Reading

Filene’s Basement Decision Interprets Lease Rejection Damages Statute

Posted in Opinions

Summary In a 22 page decision released April 20, 2015, Judge Carey of the Delaware Bankruptcy Court provided guidance as to the calculation of lease rejection damages.  Judge Carey’s opinion is available here (the “Opinion”).  The interpretation of 11 U.S.C. Section 502(b)(6) differs depending on the court which is addressing the issue.  This is an… Continue Reading

Trump Decision – Administrative Claims of Employees

Posted in Opinions

In an 11 page opinion (the “Opinion”) released March 9, 2015, in the Trump Entertainment Resorts, Inc. bankruptcy (Case No. 14-12103), Judge Gross interpreted Bankruptcy Code 503(b)(1)(A) in approving the reclassification of a claim from a priority claim to a general unsecured claim.  The Opinion is available here.  Administrative claims are an integral part of… Continue Reading

The Challenge of Pro Se Litigants

Posted in Opinions

In a fact-heavy 16 page opinion issued by Judge Shannon on March 2, 2015, we get a clear picture of the challenge faced by litigants when opposing aggressive pro-se litigants.  In Bishop v. Fannie Mae, Adv. Pro. No. 12-50912, the pro-se plaintiff was a chapter 13 debtor who was attempting to secure relief from his… Continue Reading

Trump Wins Relief From Stay – No More Trump Casino in AC?

Posted in Opinions

In a 21 page opinion (the “Opinion”) released February 20, 2015, in the Trump Entertainment Resorts, Inc bankruptcy (Case No. 14-12103), Judge Gross, granted the motion of Trump AC Casino Marks, LLC (“Trump AC”) to modify the automatic stay to allow litigation to proceed, which could result in termination of their license with the Debtors. … Continue Reading

A Default is a Default, no Matter the Size?

Posted in Opinions

In an 11 page opinion issued January 30, 2015 in the TPOP bankruptcy (13-11831), Judge Shannon held that GM did not lose the ability to enforce its contracted right to repayment just because the default was “immaterial” according to the Debtor.  The Opinion is available here. Background The Debtor, Metavation (the case name was later… Continue Reading

Lessons from Chapter 13 – When is 8% Not Really 8%

Posted in Opinions

In ruling on a very unfortunate situation (more on that below), Judge Shannon issued an opinion on July 24, 2014 in the Aro bankruptcy, holding that a state court decision concerning the validity of a lien cannot be challenged in Bankruptcy Court.  In the opinion in this case issued on January 22, 2015 (the “Opinion”),… Continue Reading

Tri-Valley Corp. Bankruptcy – Preference Complaint Dismissed – Leave to Amend Granted

Posted in Opinions

Summary In a straight-forward 11 page decision signed January 7, 2015, Judge Walrath of the Delaware Bankruptcy Court granted a defendant’s motion to dismiss a preference complaint, but granted the plaintiff leave to amend. Judge Walrath’s opinion is available here (the “Opinion”).  Numerous posts on this blog discuss other opinions issued by the Delaware Bankruptcy Court… Continue Reading

Capital Leases in Bankruptcies – A Lesson from Xchange Technology Group

Posted in Opinions

In a  9-page opinion released December 30, 2014 in the Xchange Technology Group bankruptcy (Bank. D. Del. 13-12809), Judge Gross provides a reminder that capital leases are not treated the same as a true lease (or operating lease).  Judge Gross’ opinion is available here (the “Opinion”).  The Opinion decided the motion (“Motion”) of Winthrop Resources Corporation (“Winthrop”)… Continue Reading

Liberty Brands Opinion – Preference Litigation and the Bankruptcy Court’s Constitutional Limits

Posted in Opinions

In 6 pages of Findings of Fact and Conclusions of Law released December 19, 2014 in the Liberty Brands bankruptcy (Bank. D. Del. 09-50965), Judge Walrath’s ruling referenced Stern v. Marshall, 131 S.Ct. 2594 (2011).  Judge Walrath’s Findings of Fact and Conclusions of Law are available here (the “Opinion”).  Because of the continuing discussions caused by the Stern opinion, we wanted to… Continue Reading

Conex Bankruptcy – Summary Judgment in a Preference Action

Posted in Opinions

In an 18 page opinion released December 18, 2014 in the Conex Holdings bankruptcy (Bank. D. Del. 11-10501), Judge Sontchi of the Delaware Bankruptcy Court analyzed the “ordinary course of dealings” defense to a preference action between the Debtors and Industrial Specialists Inc, the preference defendant (“Defendant”), in granting summary judgment in favor of the… Continue Reading

Motions for Reconsideration – A Lesson from Worldspace

Posted in Opinions

The efficient manner of speech which Judge Walsh employs during hearings shines through in this opinion released December 5, 2014 in the Worldspace bankruptcy (Bank. D. Del. 08-12412).  In 3-1/2 pages of his opinion, Judge Walsh explains the requirements of a motion for reconsideration and illustrates the weakness of the movant’s position.  Judge Walsh’s opinion is… Continue Reading

You Don’t Get Three Strikes when Filing a Complaint – Lessons from Tropicana

Posted in Opinions

In a 28 page opinion released November 25, 2014 in the Tropicana Entertainment bankruptcy (Bank. D. Del. 08-10856), Judge Carey of the Delaware Bankruptcy Court provided an opinion regarding a defendant’s motion to dismiss an amended complaint.  Judge Carey granted the majority of the motion to dismiss, denying a second request for leave to amend… Continue Reading

NOLs – A Recoverable Transfer?

Posted in Opinions

In a 27 page opinion released October 23, 2014 in the Conex Holdings case (Bank. D. Del. 11-10501), Judge Sontchi of the Delaware Bankruptcy Court provided his analysis of the ability of a debtor to recover the value of NOLs used by its parent within consolidated tax returns.  This ruling has implications for any debtor… Continue Reading

Analysis Regarding Third-Party Releases in Bankruptcy

Posted in Opinions

In the recent decision of In re Genco Shipping & Trading Ltd., the United States Bankruptcy Court for the Southern District of New York approved certain non-consensual third-party releases granted by unimpaired creditors and equity holders, to the extent that they complied with the US Court of Appeals for the Second Circuit’s standard for approval of these… Continue Reading

Third Circuit Rules that Failure to Disclose Third-Party Release Proves Fatal

Posted in Opinions, Recent Developments in Bankruptcy Law

In the recent Third Circuit decision of In re Lower Bucks Hospital, No. 13-1311 (3d Cir. July 3, 2014), the Third Circuit upheld the ruling of the Bankruptcy Court for the Eastern District of Pennsylvania that non-consensual releases were not part of the debtor’s plan of reorganization due to failure to adequately disclose the same to… Continue Reading

Majestic Holdco Opinion Discusses Excusable Neglect

Posted in Opinions

Summary In an 8 page decision signed February 21, 2013, Judge Gross of the Delaware Bankruptcy Court denied a Motion for Enlargement of Administrative Claim, holding that the movant failed to prove excusable neglect. Judge Gross’s opinion is available here (the “Opinion”). The Opinion analyzes the motion pursuant to the excusable neglect factors provided in… Continue Reading