New Cases - Week of August 15, 2011

New Cases For the Week of August 15, 2011 - August 19, 2011

August 18, 2011
In re Matter Of Asarco, L.L.C. (DBN)	5th Cir.	Where bidders seek payment of sale-related expenses after a sale, with no mechanism for such reimbursement having been pre-approved by the court, the standards of 11 USC 503(b) (administrative expenses) apply. However, when the bankruptcy court assesses the propriety of proposed bidder reimbursement before the sale, the court applies the standards of 11 USC 363(b) (business judgment rule).

August 17, 2011
In re Bernard L. Madoff Investment Securities, LLC (DBN)	2nd Cir.	Calculation of Ponzi investors' "net equity" does not include fake profits.

August 16, 2011
Stein v. Colborne Acquisition Co., LLC (DBN)	Bankr. ND IL	The court acknowledges that Twiqbal standards are lessened in bankruptcy where necessary information is 2d hand & records in disarray.
In re DB Capital Holdings, LLC (DBN)	D. CO	A provision in LLC operating agreement prohibiting management from filing a bankruptcy petition is valid.
In re Legal Xtranet (DBN)	Bankr. WD TX	A complaint for turnover of a disputed debt per §542 will not be dismissed per FRCP 12(b)(6) unless recovery not available at all. So long as the complaint states a claim for which relief may be granted, setting out facts in support of that claim, the fact that the Plaintiff may cite as a basis for recovery a statute that is not applicable does not require the dismissal of the action. It only requires a finding that, though relief might be available under a theory of law, it is not available under that theory of law. Rule 12(b)(6) is reserved for situations in which a recovery is not available at all as a matter of law.
In re Dreier LLP (DBN)	Bankr. SD NY	Mail service of an adversary proceeding is adequate where the service is addressed in general to "an officer." A specific officer need not be named.