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New Cases For the Week of November 3,
2003 - November 7, 2003
Brought to you by BKINFORMATION.COM
- The Source for Business Bankruptcy Information on the Internet
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November
6, 2003
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Case
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Court
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Holding
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McCarthy
v. FDIC
(DBN Subscription Required) |
9th
Cir. |
Exhaustion
requirement of Financial
Institutions Reform, Recovery
and Enforcement Act of 1989
applies to bank debtors as
well as creditors, and to
claims arising out of acts by
receiver as well as by failed
institution. |
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November
5, 2003
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Case
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Court
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Holding
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In
re Allied Digital Technologies
Corp.
(DBN Subscription Required) |
Bankr.
DE |
Although
section 701 is not expressly
included in section
546(a)(1)(B), Congress
intended to grant an
additional one year to an
interim trustee because to
read the statute otherwise
leads to absurd or futile
results inconsistent with the
overall structure of the
statutory scheme. |
In
re Chambers
(DBN Subscription Required) |
7th
Cir. |
A
student's open account balance
with a university is not a
"educational loan"
that is subject to an
exception to discharge. |
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November
4, 2003
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Case
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Court
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Holding
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In
re Mi-Lor Corp.
(DBN Subscription Required) |
1st
Cir. |
A
close corporation owns claims
against its officers or
directors for self-dealing.
A creditors' trust established
under a confirmed plan may
pursue such claims on behalf
of creditors, even if the
corporation was not insolvent
at the time of the alleged
self-dealing.
Where
there is unanimous and fully
informed shareholder approval
in a close corporation, such
approval suffices for
enforceability of a release of
the corporation's insiders by
the corporation (subject to
special rules for insolvency).
If there is not full
disclosure and unanimous
approval, the question arises
whether a showing of fairness
alone would suffice to
validate a release.
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In
re Travacom Communications,
Inc.
(DBN Subscription Required) |
Bankr.
W.D. Pa. |
A
State agency did not violate
the automatic stay by
proceeding with an
administrative proceeding
under the State's Prevailing
Wage Act, even though the
debtor had permanently ceased
operation when the hearing
commenced. |
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November
3, 2003
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Case
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Court
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Holding
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In
re EXDS, Inc.
(DBN Subscription Required) |
Bankr.
DE |
A
creditor cannot regain a right
to jury trial in an avoidance
action by withdrawing its
proof of claim. |
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