Federal Rule of Bankruptcy Procedure 3003(c)(3) provides that “the [bankruptcy] court shall fix and for cause shown may extend the time within which proofs of claim or interest may be filed.” For various reasons, creditors sometimes miss the claims “bar date” and need to seek permission from the court to file a late filed claim
Bankruptcy Law Basics
What are the Scope and Limitations of a Rule 2004 Examination?
Federal Rule of Bankruptcy Procedure 2004(a) states that “[o]n motion of any party in interest, the court may order the examination of any entity.” Courts construing Rule 2004(a) have found its scope “unfettered and broad.” In re Washington Mutual, Inc., 408 B.R. 45, 49 (Bankr. D. Del. 2009), citing In re Bennett Funding Group, …
When is an Appeal Equitably Moot?
Introduction
On May 12, 2012, the United States District Court for the District of Delaware (the “District Court”) issued an opinion (the “Decision”) in the SemCrude bankruptcy in response to the SemCrude reorganized debtors’ (“Debtors”) motion to dismiss an appeal. Several of Debtors’ oil producers (the “Producers”)…
Seeking Relief from the Automatic Stay in Delaware
Introduction
As more companies file for bankruptcy, creditors and other interested parties of a debtor must quickly familiarize themselves with the automatic stay. Section 362(a)(1) of the Bankruptcy Code stays “the commencement or continuation … of a judicial, administrative, or other action or proceeding against the debtor that was or could have been commenced before…
Decision in Custom Food Products Looks at Requirements for Service By Mail
Those not familiar with the Federal Rules of Bankruptcy Procedure are often surprised to learn that service by mail is sufficient in a bankruptcy proceeding. Federal Rule of Bankruptcy Procedure 7004(b)(3) authorizes service on a corporation (foreign or domestic) within the United States by first class mail as follows:
… by mailing a copy of…
Decision in DHP Holdings Considers Forum Selection Clause in Deciding Whether to Grant Motion to Change Venue
Introduction
In September of this year, the Honorable Mary F. Walrath, the presiding Judge in the DHP Holdings bankruptcy, issued a decision addressing the effect of a forum selection clause when deciding a motion to change venue. This issue came before the court in an adversary action filed by DHP against The Home Depot. After…
A Closer Look at the Equitable Power of the Bankruptcy Court
Introduction
On August 20, 2010, Petroflow Energy Ltd. (“Petroflow”), filed a petition for bankruptcy in the United States Bankruptcy Court for the District of Delaware. Months prior to Petroflow’s filing for bankruptcy, the company’s subsidiaries, North American Petroleum Corporation USA and Prize Petroleum LLC, filed petitions for bankruptcy in Delaware. After Petroflow filed for…
Decision in Eclipse Aviation Addresses Subject Matter Jurisdiction of the Bankruptcy Court
Introduction
On August 4, Judge Mary F. Walrath issued an opinion in the Eclipse Aviation bankruptcy that discusses the scope of the Court’s subject matter jurisdiction. This issue – the subject matter jurisdiction of the bankruptcy courts – comes up less frequently in decisions than issues such as plan confirmation, relief from stay or avoidance…
Decision in Spansion Addresses Issues That Arise During Plan Confirmation
Introduction
On April 1, 2010, Judge Kevin J. Carey , Chief Judge of the United States Bankruptcy Court for the District of Delaware issued an opinion (the “Opinion“) in the Spansion bankruptcy rejecting the Debtor’s proposed plan of reorganization. This post will look at the requirements provided for under the Bankruptcy Code in…
What is a Fraudulent Transfer? Decision in Elrod Holdings Explains
Introduction
Section 548 of the United States Bankruptcy Code allows for the avoidance of transfers that are either intentionally or constructively fraudulent. Section 548 provides, in relevant part, as follows:
(a)(1) The trustee may avoid any transfer … of an interest of the debtor in property, or any obligation … incurred by the debtor, that…