DelawareBankruptcyLitigation

MIG, LLC – Virgin Islands Law According to Judge Gross

12/20/15

Summary

In a 14 page decision, released December 16, 2015, Judge Gross of the Delaware Bankruptcy Court considered made a determination of British Virgin Islands law on limited partnerships.  Judge Gross’ opinion is available here (the “Opinion”).

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Capsule International Holdings LLC Preference Actions Filed

12/18/15

On December 17th and 18th, 2015, the Official Committee of Unsecured Creditors (the “Committee”) of Capsule International Holdings, LLC, and its affiliated debtors and debtors in possession (the “Debtors”), filed approximately 80 complaints seeking the avoidance and recovery of allegedly preferential and fraudulent transfers under Sections 547, 548 and 550 of the Bankruptcy Code.  The Committee also seeks to disallow claims of such preference defendants under Sections 502(d) and (j) of the Bankruptcy Code.

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Opinion in AgFeed USA – A Release of all Known and Unknown Causes is Binding, Even in Bankruptcy Court

12/15/15

On December 15, 2015, Judge Brendan L. Shannon of the Delaware Bankruptcy Court granted the motion of Hormel Foods (the “Defendant”) to dismiss a complaint filed by JLL Consultants, the Liquidating Trustee (the “Trustee”) in the AgFeed bankruptcy.  The “Opinion” is available here.

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Cubic Energy Files a Prepack Chapter 11 Petition

12/14/15

On Friday, December 11, 2015, Cubic Energy Inc. and affiliated debtors (“Debtors” or “Cubic”) filed a voluntary Chapter 11 with the United States Bankruptcy Court for the District of Delaware.  This is a prepack bankruptcy, with Cubic filing a proposed Chapter 11 plan of reorganization and disclosure statement on the same day it filed for bankruptcy.

In addition, Cubic filed the standard “first-day” motions, including a motion to approve use of cash collateral, motion to pay employee wages, motion to appoint claims agent, and a motion to schedule a confirmation hearing, etc.

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Post-petition Interest Excluded from Unsecured Indenture Creditor’s Claim

12/07/15

The U.S. Bankruptcy Court for the District of Delaware held in a recent opinion that post-petition interest should be excluded from an unsecured creditor’s claim, as otherwise it would violate the plain meaning of Section 502(b)(2).  In the case of In re Energy Future Holdings Corp., et al., Case No. 14-10979 (CSS) (Bankr. D. Del. Oct.

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Offshore Group Investment Limited files a Prepack in Chapter 11

12/06/15

On December 3, 2015, Offshore Group Investment Limited and 23 affiliates filed for relief under chapter 11 of the Bankruptcy Code.  The cases are jointly administered under Case Number 15-12422 and presided over by Judge Shannon.  The first day hearing was held on December 4, 2015.  The second day hearing is scheduled for January 7, 2016 at 10:00 a.m.

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RadioShack Preference Litigation UPDATE

11/27/15

As detailed in this previous post, the Liquidating Trustee appointed to prosecute preference actions in the RadioShack bankruptcy proceeding filed approximately 383 preference actions in late October and early November of this year.

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Millennium Lab Holdings a/k/a RxAnte files a Prepack in Chapter 11

11/23/15

On November 10, 2015, Millennium Lab Holdings and 2 affiliates filed for relief under chapter 11 of the Bankruptcy Code.  The cases are jointly administered under Case Number 15-12284 and presided over by Judge Silverstein.  The first day hearing was held on November 12, 2015.  The second day hearing is scheduled for December 10, 2015 at 11:00 a.m.

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Affirmative Insurance Holdings, Inc. Section 341 Meeting Continued

11/23/15

The Affirmative Insurance Holdings, Inc. Section 341 meeting has been continued to December 14, 2015, at 1:00 p.m. at J. Caleb Boggs Federal Building, 844 King St., Room 2112, Wilmington, Delaware.  For a prior post on this bankruptcy proceeding, click here.

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Diamondhead Casino Bankruptcy – and the Challenge to Trustee Appointments

11/15/15

On November 13, 2015, Judge Laurie Selber Silverstein of the Delaware Bankruptcy Court ruled on an emergency motion to appoint a trustee.  Unfortunately for the movants, it is hard to argue it is an emergency when the debtor is almost out of cash, but has been running on fumes for the last several years with a massive equity cushion.  The “Opinion” is available here.

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