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New Cases For the Week of April 5, 2010 - April 9, 2010
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Click here to search prior New Opinion summaries.
| April 7 , 2010 |
Case |
Court |
Holding |
In re Wire Comm Wireless, Inc.
(DBN) |
9th Cir. |
Where a party in interest opposing a compromise declined to purchase the compromised claims from the estate for $1 more than the amount of the compromise, the bankruptcy court did not err in approving the otherwise-reasonable compromise. |
In re Bayou Group, LLC
(DBN) |
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A pre-petition committee of unsecured creditors can, under appropriate circumstances, receive an administrative claim for legal fees incurred in making a substantial contribution to a Chapter 11 case to be filed in the future.
Here, the unofficial committee is entitled to reimbursement for, among other things, fees incurred in obtaining appointment of a pre-petition operating receiver who later became the designated DIP representative. Although the remedy (i.e. the receiver) was novel, it provided what the debtor urgently needed - continuity of fiduciary management uninterrupted by a new Ch. 11 trustee having to learn the ropes. |
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| April 6 , 2010 |
Case |
Court |
Holding |
In re M&M Marketing, LLC
(DBN) |
8th Cir. BAP |
An attorney for a creditor cannot be appointed as special counsel to a bankruptcy trustee unless the attorney has previously represented the debtor.
Where an attorney for a creditor is appointed to represent the trustee in pursuing claims against a different creditor, there is an actual conflict of interest if the creditor against whom claims will be pursued asserts claims against special counsel's creditor clients.
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In re Cloverleaf Enterprises, Inc.
(DBN) |
Bankr. MD |
Where a proposed sale of substantially all assets will not provide any benefit to unsecured creditors and will benefit only the debtor's shareholder, the sale is not warranted, regardless of whether failure to approve the sale means the business will "crater." |
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