New Cases For the Week of May 20, 2024 - May 24, 2024
2023 case summaries can be accessed by clicking here
May 24, 2024
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In re: Meridien Energy, LLC | Bankr. ED VA | A Ch. 11 debtor's confirmed plan provides that the allowability of the judgment claim of the estate's largest creditor will be determined by the outcome of a pending state court appeal. Yet, the debtor filed an objection to the claim. The court discerns the purpose:
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In re: Samson Resources Corporation | D DE | The court denies a request for direct appeal by a trustee who suffered an adverse result in a fraudulent transfer action:
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Lee v. U.S. Bank National Association | 11th Cir. | In a dispute concerning the anti-modification provision of Ch. 11, the court finds that the bankruptcy court did not err in finding that a mortgage on a 43- acre property which was primarily farmland but which also contained the debtor's residence on 2.5 acres, could not be modified:
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May 23, 2024
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In re: Smith | 3rd Cir. | A creditor's consent to an earlier version of a Ch. 13 plan was preclusive as to her current objection to the debtor's third modified plan:
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In re: The Financial Oversight and Management Board for Puerto Rico | 1st Cir. | For years, several individual pension beneficiaries have been pursuing claims against UBS Financial Services for its role in 2008 in issuing pension funding bonds for The Employees Retirement System of the Government of the Commonwealth of Puerto Rico. The court holds that the claims are now barred by the confirmed Puerto Rico plan:
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In re: Enviva Inc. | Bankr. ED VA | In a wood pellet manufacturer Ch. 11 case, the court partially grants a motion to reconstitute the 3-member committee, ordering the UST to appoint at least one indenture trustee The court rejects the UST's argument that the court lacks the power to change the membership of a committee:
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In re: Bittrex, Inc. | Bankr. DE | In a crypto bankruptcy, the court sustains the debtor's objection to a claim that seeks recovery for the claimant's lost value when his crypto was frozen by the debtor. The claimant's agreement to the debtor's Terms of Service is fatal to his claim:
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In re: Banks | Bankr. ND GA | The court denies a debtor's "Payer for Relief":
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In re: Cummings | Bankr. NM | Noting a six-way split of authority, the court finds that a Ch. 7 trustee can receive compensation when the case is converted to Ch. 13 prior to any distributions:
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May 22, 2024
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In re: Trimax Medical Management, Inc. | Bankr. MD GA | In a Subchapter V case, the court denies confirmation objections asserted by a creditor and the UST and confirms the plan:
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In re: Highland Capital Management LP | 5th Cir. | "More" is required for a post-confirmation claim amendment in a Ch. 11 case:
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In re: CTE 1 LLC | Bankr. NJ | After a debtor auto dealership sold substantially all of its assets in a free and clear sale, a customer of the predecessor of the debtor sought discovery from the purchaser in a state court action against debtor's predecessor. The court finds that the purchaser, as an unknown creditor, has not been deprived of due process rights. The court further finds that the discovery related to any potential successor liability claim against the purchaser is barred by the free and clear order:
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We'll Clean Incorporated | Bankr. ND IL | The bankruptcy court finds that although the general rule is that successor liability claims belong to the estate , this case is an exception. The court also punts an in pari delicto argument:
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In re: Lovett | Bankr. ED MO | In a discharged Ch. 7 case, the court denies debtors' motion to vacate and then reissue the discharge order so that two omitted creditors can be added:
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In re: B-1208 Pine, LLC | Bankr. WD WA | In a lien priority dispute between a mechanics' lien and a putatively subrogated mortgage lien, the court finds that the issue cannot be resolved on summary judgment:
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May 21, 2024
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In re: Alfahel | 9th Cir. | The court finds that the "third dismissal" rule of FRCP 41(a)(1)(B) does not apply here to a motion to avoid a judicial lien:
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In re: Firestar Diamond, Inc. | SD NY | The bankruptcy court did not err in finding that pre-petition pledges of accounts receivable to bank creditors were "transfers of the claims" belonging to the account creditors for the purposes of 11 USC 502(d). When the receivable pledgors were later sued in avoidance actions, the bankruptcy court did not err in disallowing the pledged receivables claims under 11 USC 502(d):
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In re: Quorum Health Corporation | D DE | In a joint defense privilege dispute regarding documents assigned by a Ch. 11 debtor to a plan litigation trust, the court rejects the argument that such privileged documents cannot be assigned without the consent of all privilege holders. The court denies an interlocutory appeal:
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In re: WWMV, LLC | Bankr. SD WV | The court rejects disinterestedness challenges to retention of special counsel who also owns equity interests in both members of the debtor. These interests are aligned with the purpose of counsel's retention. Moreover, the trustee will operate as a gatekeeper for any future conflicts, which, at this point, are merely speculative:
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In re: Arrowhead Financial ICT, LLC | Bankr. KS | The court awards Rule 45 sanctions against a third party which failed to produce "key checks" needed by a trustee for a pre-filing investigation of a preference action:
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In re: RML, LLC | Bankr. SD NY | in a mass tort bankruptcy, the court disallows timely-filed proofs of claim because the claimants did not comply with the confirmed plan's requirement to also file a complaint in pending multi-district litigation:
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In re: SAL ATX LLC | Bankr. WD TX | After conversion of Ch. 11 cases to Ch. 7 for debtors' breach of an agreed order regarding filing of MORs and payment of UST fees, the court rejects the debtors' request for a do over based on "excusable neglect":
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May 20, 2024
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In re: Genesis Global Holdco, LLC | Bankr. SD NY | In a hotly-contested crypto bankruptcy, the court: (i) approves a settlement between the debtors and the NYAG and (ii) confirms the debtors' plan:
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In re: 3 Kings Construction Residential LLC | Bankr. ND GA | In an adversary proceeding by a trustee against defendants who allegedly misappropriated hundreds of thousands of estate funds post-petition, the court previously struck the the defendants' answers for contempt. The court now rejects the motion of defendants' counsel to quash subpoenas on counsel. The crime-fraud exception applies.
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In re: Dionne | Bankr. NH | In a Ch. 13 case, the court sustains an eligibility objection arguing that the contributions of debtor's parents, both pre-petition and promised post-petition, are not sufficiently certain to be the "regular income" required for eligibility:
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In re: DeMarco | Bankr. ED NY | In a Ch. 7 case, the court sustains a foreign representative's objection to the New Zealand debtor's New York homestead exemption:
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