Delaware Court Holds Enforcement of Intercreditor Agreement Does not Breach Duty of Good Faith and Fair Dealing

In LNV Corporation v. Ad Hoc Group of Second Lien Creditors (In re La Paloma Generating Company, LLC, Adv. Pro. No 19-50110 (JTD) (D. Del. January 13, 2020), a Delaware bankruptcy court recently held that actions taken by a senior secured creditor to enforce its rights under an intercreditor agreement did not constitute a breach of […]

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“Special Circumstances” did not Save a 12 Year Old Involuntary Case

In Popular Auto, Inc. v. Reyes-Colon (In re Reyes-Colon), Nos. 17-1971, 17-1972, 2019 WL 1785039 (1st Cir. April 24, 2019), the First Circuit recently ruled that “special circumstances” does not authorize a bankruptcy court to use its equitable powers to contravene the numerosity requirement for an involuntary petition under section 303(b)(1) of the Code.  This twelve year dispute did not […]

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Retailers Beware: Santa Claus is Making a Come Back

Many of us were raised to believe that Santa Claus delivers our gifts before we wake up on Christmas Day.  If you believe, behave, and send your wish list on time, you are virtually certain to receive what you want for Christmas.  As we grow older, some of us (not me) begin to doubt the existence of Santa.  […]

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Court Denies AMR Union’s Rejection Damages Claims After Abrogation of Collective Bargaining Agreements

In November 2011, AMR Corporation, the parent of American Airlines, filed chapter 11 in the United States Bankruptcy Court for the Southern District of New York.  Through the bankruptcy, which was hugely successful, AMR was able to shed billions of dollars in operating expenses and become the largest airline in the United States.  Part of the […]

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California Court Grants Relief from Stay to Allow Foreclosure of Marina

The Bankruptcy Court for the Northern District of California recently granted a secured lender’s request for relief from the automatic stay, pursuant to sections 362(d)(1) and (d)(2) of the Bankruptcy Code, to allow a trustee’s sale of the debtor’s marina under state law. In re Delta Waterways, LLC, Case No. 18-42076-CN (Bankr. N.D. Cal. December […]

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Ninth Circuit BAP Denies Retroactive Approval of Postpetition Financing

Section 364(a) of the Bankruptcy Code allows a debtor to incur unsecured debt, like trade debt, in the ordinary course of business.  Section 364(b) of the Code provides, however, that when a debtor plans to incur unsecured debt, like a loan, outside the ordinary course, the debt must be pre-approved by the bankruptcy court after […]

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