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New Cases For the Week of October 12, 2009 - October 16, 2009
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| October 14, 2009 |
Case |
Court |
Holding |
In re TOUSA, Inc.
(DBN) |
Bankr. SD FL |
$500 million in liens granted by certain debtor affiliates within 6 months of bankruptcy were avoidable fraudulent transfers since the lien-granting entities were insolvent, or rendered insolvent, and received less than reasonably equivalent value in exchange for the liens. |
In re SemCrude, LP
(DBN) |
Bankr. DE |
Where a claim for goods sold to a debtor within 20 days of a bankruptcy is scheduled by the debtor as liquidated, noncontingent and undisputed, the claimant can meet its initial burden of proof under 11 USC 503(b)(9) based upon such scheduling. The invoice amount of goods sold to a debtor is presumptively the "value" of such goods. |
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| October 13, 2009 |
Case |
Court |
Holding |
In re Philadelphia Newspapers, LLC
(DBN) |
Bankr. E.D. PA |
The standard for approval of a break-up fee is not the business judgment rule. The standard is the same standard applied for allowance of any administrative expense claim. Moreover, where the break-up fee is is sought by an insider, special scrutiny should be applied.
Where secured creditors have expressed a desire to credit bid, and the stalking horse bid is by an insider, a break-up fee is inappropriate, since the fee does not benefit the estate by: (i) promoting competitive bidding or (ii) insuring the presence of a stalking horse. |
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| October 12, 2009 |
Case |
Court |
Holding |
In re Arclin US Holding, Inc.
(DBN) |
Bankr. DE |
For purposes of 11 USC 1114, "plan, fund or program" does not mean "ERISA-qualified plan, fund or program." 29 months of company-paid medical benefits offered to an employee in connection with a RIF and severance agreement were "retiree benefits" covered by 11 USC 1114. Consequently, the medical benefits could not be discontinued postpetition, except in conformity with section 1114. |
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