DelawareBankruptcyLitigation

Books and Records Action: Chancery Examines Scope of Documents

09/29/14

In the recent decision of Caspian Select Credit Master Fund, Ltd. v. Key Plastics Corp., Inc., C.A. No. 8625-VCN (Del. Ch. Sept. 3, 2014), the Court analyzed whether categories of documents requested by Caspian, the minority shareholder of Key Plastics, were “narrowly  tailored” to a proper purpose.

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Trump Entertainment Resorts Files for Chapter 11 Bankruptcy Protection in Delaware

09/10/14

Trump Entertainment Resorts, along with its affiliated debtors (“Trump Resorts” or “Debtors”), filed for bankruptcy under Chapter 11 of the Bankruptcy Code on September 9, 2014 (the “Petition Date”) in the United States Bankruptcy Court for the District of Delaware.

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Proposed Amendments Published for Public Comment

09/06/14

The Judicial Conference Advisory Committees on Appellate, Bankruptcy, Civil, and Criminal Rules have proposed amendments to their respective rules and forms, and requested that the proposals be circulated to the bench, bar, and public for comment.

The following proposed amendments were approved for publication by the Judicial Conference Committee on Rules of Practice and Procedure in May 2014.

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Reclamation Rights to Recover Goods from a Debtor under Section 546(c) of the Bankruptcy Code

09/04/14

What remedies do you have to recover goods shipped to a company in the weeks leading up to its bankruptcy?  As to those goods shipped 45 days prior to a debtor’s filing, Section 546(c) of the Bankruptcy Code provides a reclamation right to creditors to recover such goods.  This may provide you with the ability to recover your goods directly from the debtor.

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Analysis Regarding Third-Party Releases in Bankruptcy

08/31/14

In the recent decision of In re Genco Shipping & Trading Ltd., the United States Bankruptcy Court for the Southern District of New York approved certain non-consensual third-party releases granted by unimpaired creditors and equity holders, to the extent that they complied with the US Court of Appeals for the Second Circuit’s standard for approval of these releases.

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MCG Preference Actions Update

08/30/14

In a prior post, we discussed that a number of preference actions were filed in the MCG Limited Partnership, et al. bankruptcy proceeding by the Chapter 7 Trustee.  Since this post, an additional 93 preference complaints were filed, bringing the total to 131.

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Preference Actions Filed in MCG Limited Partnership Bankruptcy

08/04/14

On August 1, 2014, the Chapter 7 Trustee of MCG Limited Partnership, et al., filed approximately 38 complaints seeking to avoid and recover alleged preferential transfers pursuant to Sections 547 and 550 of the Bankruptcy Code, and to disallow claims of the defendants pursuant to Section 502(d).

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Section 503(b)(9) Claims: Timing of Payments

07/29/14

When will your company’s Section 503(b)(9) claim be paid?  Under normal circumstances, Section 503(b)(9) claims are paid when the debtor makes a final distribution to creditors.  However, a Section 503(b)(9) creditor can file a motion to demand immediate payment of its claim.  This article will address the standard employed by the Bankruptcy Court in determining whether to grant immediate payment of a Section 503(b)(9) claim.

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