Monthly Archives: July 2011

Bankruptcy Bullets – In re Twin City Hospital, No. 10-64360 (Bankr. N.D. Ohio 2011) (RK)

On June 29, 2011, Judge Russ Kendig denied a motion by Canton Aultman Emergency Physician, Inc., a firm employed by the Debtor to provide emergency physician services. Canton Authman requested that the Cour t lift the Debtor’s automatic stay so that Canton could pursue a state court action against the Debtor’s former CEO and CFO. Judge Kendig denied the motion on the grounds that the Debtor’s automatic stay did not extend to the Debtor’s officers and would not be violated if the suit proceeded solely against the CEO and CFO. Continue reading

In re BearingPoint, Inc., No. 09-10691, 2001 Bankr. LEXIS 2585 (Bankr. S.D.N.Y. July 11, 2011)

Visiting the holding of Stern v. Marshall, Judge Robert E. Gerber of the Bankruptcy Court for the Southern District of New York declined to adjudicate claims over which the bankruptcy court had reserved exclusive jurisdiction under the order confirming the debtor’s chapter 11 plan of reorganization. Continue reading

Bankruptcy Bullets – Bank of America, N.A. v. Lightstone Holdings, LLC, Index No. 601853/2009 (Sup Ct NY Cty July 14, 2011)

On July 14, 2011, Judge Melvin L. Schweitzer for the Supreme Court of the State of New York for New York County, granted a motion for summary judgment that upheld the enforceability of a non-recourse carve-out guaranty that became fully recourse upon Extended Stay Hotels Inc.’s bankruptcy filing. Continue reading

Bankruptcy Bullets – In re Capmark Financial Group, et al., No. 1-09-bk-13684 (Bankr. D. Del. July 6, 2011)

On July 6, 2011, Judge Sontchi approved the Debtors’ plan disclosure statement over the objection of Prairie Enterprises, Ltd., a general unsecured creditor of the Debtors, which argued that the disclosure statement did not provide adequate information for creditors to evaluate alternatives to the Debtors’ proposed plan of reorganization. Continue reading

Seventh Circuit Reaffirms Secured Creditors’ Right to Credit Bid

In an opinion that has created the most significant bankruptcy-related circuit split in recent years, the U.S. Court of Appeals for the Seventh Circuit in In re River Road Hotel Partners, LLC1 vindicated secured lenders’ unqualified right to credit bid on asset sales under a chapter 11 plan. The Seventh Circuit in River Road rejected the rationale of the U.S. Court of Appeals for the Third Circuit in In re Philadelphia Newspapers, LLC. Continue reading

S.D.N.Y. Bankruptcy Court Continues to Construe Bankruptcy Code’s Safe Harbor Provisions Narrowly

In two recent decisions, the United States Bankruptcy Court for the Southern District of New York has interpreted narrowly certain of the Bankruptcy Code’s safe harbor provisions. Continue reading