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New Cases For the Week of December 29, 2003 -
January 2, 2004
Brought to you by BKINFORMATION.COM
- The Source for Business Bankruptcy Information on the Internet
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January
2, 2004
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Case
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Court
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Holding
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In
re Miller
(DBN Subscription Required) |
10th
Cir. BAP |
Under
the statute governing
conversion form Chapter 7 to
Chapter 13 (11 U.S.C. § 706),
the bankruptcy court does not
have the discretion to deny
conversion on any basis other
than the requirements set
forth in that statute. |
In
re Mitchell
(DBN Subscription Required) |
Bankr.
S.D. Iowa |
Defendants`
jury demand granted as to
counts perrtaining to the
alleged fraudulent conveyance
of real estate. |
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December
31, 2003
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Case
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Court
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Holding
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In
re Integrated Health Services,
Inc.
(DBN Subscription Required) |
Bankr.
De. |
Although
a federal government agency
participated heavily in a
Chapter 11 case and filed a
claim, these events were
insufficient to waive the
agency's immunity with respect
to cause of action that did
not directly arise from its
claim. |
In
re Harris
(DBN Subscription Required) |
Bankr.
De. |
A
debtor's prepetition transfer
of his $115,000 house to his
mother for $78,000 was an
actual fraud fraudulent
transfer where the debtor
continued to live in the
property after the
transaction. |
In
re McConnell
(DBN Subscription Required) |
8th
Cir. BAP |
A
bankruptcy court's order
denying confirmation of a
Chapter 13 plan – without
dismissing the case – is not
a final order for purposes of
appeal within the meaning of
28 U.S.C. § 158(a)(1) and
(d). |
In
re Farmland Industries, Inc.
(DBN Subscription Required) |
Bankr.
W.D. Mo. |
Chapter
7 Trustee may assert claim for
preferential transfers in
another debtor's Chapter 11
case by timely filing a proof
of claim. Upon objection by
Chapter 11 debtor, however,
the proceeding becomes an
adversary proceeding. |
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December
29, 2003
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Case
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Court
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Holding
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In
re Fleming Companies, Inc.
(DBN Subscription Required) |
Bankr.
De. |
The
bankruptcy court reduces the
fees sought by estate
professionals on the grounds
that the actions for which
compensation were sought were
improper or appear to have
been designed to frustrate the
legitimate rights of other
parties in interest.
It
is unnecessary to have two or
three attorneys
"coordinating" or
"leading" a hearing.
It
is improper for a firm to
charge higher rates for
bankruptcy attorneys of
comparable experience with
non-bankruptcy attorneys.
Debtors'
counsel's disregard of cash
management order and court's
interpretation thereof
warranted disallowance of fees
related thereto.
Fees
denied for services hat were
intended to make a litigation
point rather than benefit the
estate. |
In
re ZB Company, Inc.
(DBN Subscription Required) |
Bankr.
DE |
Proration
of stub period rent is not
permitted under 11 USC
365(d)(3). However,
landlords owed such rent are
entitled to an administrative
claim for the postpetition use
of the premises. The
presumptive amount of such
claim is the contract rate of
rent. Where an agent of
the estate is fronting the
rent (subject to a
reimbursement obligation from
the debtor), it is appropriate
for the debtor to pay the rent
as it becomes due rather than
making landlords await payment
of an administrative
claim. "Congress
never intended that a debtor
shift the responsibility to
pay an administrative rent
claim to a third party and
then intercept and divert the
funds for its own purposes.
There is always the potential
that a claimant could be left
with an allowed administrative
claim against an
administratively insolvent
estate." |
In
re Mirant Corporation
(DBN Subscription Required) |
Bankr.
N.D. Tex. |
A
governmental entity cannot be
a forward contract merchant
because it is not a
person.
Even
if a contract is unassumable
and contains a valid ipso
facto clause, the stay still
applies to prevent unilateral
termination and must be
modified before the ipso facto
clause (or similar default)
may be invoked.
The
potential loss of use of an
enforceable ipso facto clause
is not cause for relief from
the automatic stay. |
In
re 4C Solutions, Inc.
(DBN Subscription Required) |
Bankr.
C.D. Ill. |
Absolute
priority rule violated where
Ch. 11 plan gave Debtor's CEO
the exclusive right to acquire
all of the reorganized
Debtor's stock,
notwithstanding old stock
owned by holding company. |
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