That was Quick: California Court Holds that the SBRA can be Applied Retroactively

The Small Business Reorganization Act of 2019 (“SBRA”) became effective on February 19, 2020, after being enacted by Congress at blazing speed.  Indeed, the legislation was first introduced into the House of Representatives on June 18, 2019, was received by the Senate on July 24, 2019 and was signed by the President on August 23, […]

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Fifth Circuit Holds that a Constructive Trust is a Judicial Remedy Under Texas Law that is not Automatically Created by Contract

In BBX Operating, L.L.C. v. Bank of America, N.A. (In re Connect Transport, L.L.C.), No. 19-11050 (5th Cir. August 11, 2020), the Fifth Circuit Court of Appeals recently upheld the dismissal of a conversion claim as a matter of law, because the plaintiff failed to sufficiently plead ownership of the purportedly converted funds in its complaint, […]

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Fifth Circuit Holds that the SBA Cannot Be Enjoined from Denying Bankrupt Entities Access to PPP Funds

In a earlier article, entitled “New Mexico Court Holds that Bankrupt Entities are Eligible for the Paycheck Protection Program,” we described how some bankruptcy courts  confronted with exigent circumstances (including several within the 1st, 5th and 10th Circuits) have granted injunctive relief to debtors in bankruptcy who have been denied  loans under Payment Protection Program […]

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District Court Holds Section 105 can be Used to Avoid Default Provisions Under Confirmed Chapter 11 Plan

In In re Texas Comptroller of Public Accounts v. Patrick Taylor Adams, et al., Civ. A. No. 3:18-CV-727-L (N.D. Tex. May 31, 2020) [Dkt. No. 8], the District Court for the Northern District of Texas recently affirmed a bankruptcy court’s order reinstating the automatic stay against a creditor post-confirmation and preventing such creditor from exercising […]

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Houston Court Questions the Utility of the J. Alix Protocol in Retaining Turnaround Advisors and their Firms

In In re McDermott International, Inc., et al., Case No. 20-30336 (Bankr. S.D. Tex. May 20, 2020) [Dkt. No. 916], Judge Jones called into question the usefulness of the J. Alix Protocol in retaining turnaround advisors and their firms during a bankruptcy case.  According to Judge Jones: While innovative at its inception, the Alix Protocol […]

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Creditor Denied Derivative Standing to Countersue Plaintiff in Chapter 7 Adversary Proceeding

Creditor denied derivative standing in chapter 7 case.

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Private Equity Firm and Owner Face Potential WARN Act Liability in Portfolio Companies’ Chapter 7 Bankruptcies

In Shameeka Ien v. TransCare Corp., et al. (In re TransCare Corp.), Case No. 16-10407, Adv. P. No. 16-01033 (Bankr. S.D.N.Y. May 7, 2020) [D.I. 157], the Bankruptcy Court for the Southern District of New York recently refused to dismiss WARN Act claims against Patriarch Partners, LLC, private equity firm (“PE Firm“), and its owner, […]

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