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New Cases For the Week of May 25, 2009 - May 29, 2009
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Click here to search prior New Opinion summaries.
| May 29, 2009 |
Case |
Court |
Holding |
In re Moran
(DBN Subscription Required) |
6th Cir. |
Where the proceeds of a sale of estate assets in an individual debtor's case were sufficient to provide a 100% dividend to creditors, the unsuccessful bidder lacks standing to appeal the bankruptcy court's approval of the sale. The purpose of bankruptcy is to maximize recovery to creditors. Where creditors are paid in full, the unsuccessful bidder lacks standing to challenge the sale on the grounds that he was denied a profit from the sale. |
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| May 28, 2009 |
Case |
Court |
Holding |
In re American Capital Equip., Inc.
(DBN Subscription Required) |
Bankr. WD PA |
Even if applicable State law allowed a debtor owing asbestos claims to settle such claims without the consent of affected insurers, the settlement must nevertheless be reasonable for bankruptcy purposes. Where claims were not paid historically and the debtor was defunct (making any excess judgment effectively worthless) the proposed settlement was not reasonable. The proposed settlement was also not in good faith where there was "patent collusion" between the debtor and asbestos claimants as evidenced by a provision in the plan enabling claimants to opt into a procedurally favorable ADR process in return for giving the debtor a percentage of insurance recoveries received by the claimants. |
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