The Fifth Circuit Court of Appeals recently remanded a dismissed adversary proceeding where a former employee of a corporate debtor attempted to assert a class action on behalf of himself and 129 other employees for alleged violations of the Worker Adjustment and Retraining Notification Act, 29 U.S.C. §§ 2101-2109. See Teta v. Chow (In re TWL Corporation), […]
Read MoreThe Fifth Circuit Court of Appeals recently determined the issue of whether a chapter 11 plan that artificially impairs a class of creditors for purposes of complying with section 1129(a)(10) of the Bankruptcy Code is confirmable. See Western Real Estate Equities, L.L.C. v. Village at Camp Bowie I, L.P. (In re Village at Camp Bowie I), No. […]
Read MoreThe Ninth Circuit Court of Appeals recently held that a bankruptcy judge does not have jurisdictional authority to enter a final judgment in a fraudulent conveyance action against a non-claimant to a bankruptcy estate. See Executive Benefits Insurance Agency v. Arkison (In re Bellingham Insurance Agency, Inc.), No. 11-35162 (9th Cir. Dec. 4, 2012). Such […]
Read MoreThe case of H. Jason Gold v. First Tennessee Bank, N.A. (In re Taneja), Adversary Case No. 10-1225 (Bankr. E.D. Va. July 30 2012), concerns an elaborate fraud perpetrated by a mortgage broker, Financial Mortgage, Inc. (“FMI”), against various warehouse lenders, and a bankruptcy trustee’s later attempt to recover payments made by the mortgage broker to its innocent lenders as fraudulent conveyances. Facts […]
Read MoreIn an appeal in ASARCO LLC’s chapter 11 bankruptcy case, pending in the Southern District of Texas, the U.S. District Court recently affirmed the Bankruptcy Court’s award of a fee enhancement, a.k.a. a fee bump, to ASARCO‘s bankruptcy counsel, which had obtained “extremely favorable” results for the Debtor and its creditors. See ASARCO LLC v. Baker Botts, L.L.P., Case No. 2:11-CV-290 (S.D.T.X. […]
Read MoreThe Third Circuit Court of Appeals recently held that a party seeking to sue a trustee in bankruptcy must still obtain permission from the appointing bankruptcy court, but only in instances when the trustee is being sued for acts in his official capacity and not in instances when the trustee is merely continuing the business affairs of the debtor’s […]
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