On August 29, 2016, the Third Circuit released a precedential opinion (the “Opinion”) which opined that a “[redemption] premium, meant to give the lenders the interest yield they expect, [does not] fall away because the full principal amount is now due and the noteholders are barred from rescinding the acceleration of debt.” The Third Circuit’s
Opinions
The Intersection of the SCA and Bankruptcy Code
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Posted in Opinions
In a lengthy opinion published November 7, 2016, Judge Sontchi of the Delaware Bankruptcy Court provided a thorough analysis of the interaction between the Stored Communications Act (“SCA”) and the Bankruptcy Code. Judge Sontchi’s opinion is available here (the “Opinion”). The Opinion was issued in the Chapter 15 case In re Irish Bank Resolution Corporation…
Multi-Case Asbestos Order Provides for Discovery of 2019 Information
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Posted in Opinions
On November 8, 2016, Judge Kevin Gross of the Delaware Bankruptcy Court issued an opinion (the “Opinion”) that affects nine different bankruptcy cases. The Opinion was issued in response to the request of Honeywell and Ford for access to asbestos claimants’ Rule 2019 exhibits. A copy of the Opinion is available here.
Before diving deep…
Claims Objections Overruled in Seegrid Bankruptcy
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Posted in Opinions
On October 27, 2016, Chief Judge Brendan L. Shannon of the Delaware Bankruptcy Court issued an opinion overruling objections to the claims of Seegrid’s former CEO. A copy of the Opinion is available here.
This is a relatively short Opinion considering the number of issues that it discusses. The first issue was whether Mr. Horbal, …
Interest Payments Do Not Qualify as Protected Settlement Payments Under Section 546(e)
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Posted in Opinions
In the decision of Motors Liquidation Co. Avoidance Action Trust v. JPMorgan Chase Bank, N.A. (In re Motors Liquidation Co.), 552 B.R. 253 (Bankr. S.D.N.Y. 2016), the SDNY bankruptcy court held that prepetition interest payments on a term loan did not qualify as “settlement payments” under Section 546(e) of the Bankruptcy Code. The court also…
Judge Carey Holds that Severance Claim is a Priority Claim
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Posted in Opinions
In an 8 page decision dated October 19, 2016, Judge Carey of the Delaware Bankruptcy Court overruled an objection to the reclassification of the claim of a terminated employee. Judge Carey’s opinion is available here (the “Opinion”). This employee (“Mangan”) was a fifteen year veteran of the Debtor, and was entitled to 15 weeks…
Sanjel (USA) Inc. – Chapter 15 Creditors May Challenge Reach of Stay in Recognition Order
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Posted in Opinions
A recent decision by the United States Bankruptcy Court for the Western District of Texas in In re Sanjel (USA) Inc., et al., Case No. 16-50778-CAG (Bankr. W.D. Tex. July 29, 2016) explains that in a Chapter 15 case, the U.S. bankruptcy court will not always apply the law of the foreign jurisdiction to…
Lien Stripping in Bankruptcy
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Posted in Opinions
On October 11, 2016, Chief Judge Brendan L. Shannon of the Delaware Bankruptcy Court issued a letter ruling in which he opined on the appropriate valuation of a first lien. A copy of the Opinion is available here.
While the ruling is short, it is important that lenders are cognizant of it. Judge Shannon cites …
Abeinsa Holding Opinion – Motion for Relief from Stay Granted
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Posted in Opinions
Summary
In a 9 page decision dated October 6, 2016, Judge Carey of the Delaware Bankruptcy Court granted the motion of Portland General Electric (“PGE”) for relief from the automatic stay of the Bankruptcy Code. Judge Carey’s opinion is available here (the “Opinion”). PGE moved that the stay be lifted so that it could …
Opinion in NewPage (Pirinate Consulting) is a Reminder of 547 Defenses
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Posted in Opinions
Over three years ago, in September 2013, Pirinate Consulting Group LLC, in its capacity as Litigation Trustee (the “Trustee”) of the NewPage Creditor Litigation Trust, began filing complaints in the Delaware Bankruptcy Court seeking the avoidance and recovery of what the Trustee alleges are preferential transfers. You can read our summary of the initial preference…