DelawareBankruptcyLitigation

Trustee in Viashow Bankruptcy Commences Avoidance Actions

06/12/11

Last month, the Chapter 7 trustee (the "Trustee") in the Viashow bankruptcy filed avoidance actions against several creditors of the bankruptcy estate.  One avoidance action in particular seeks to recover damages allegedly sustained by Viashow due to breaches of fiduciary duties by its officers and directors (the "D&O Action").  In addition to Viashow's officers and directors, the D&O Action seeks damages against defendants who allegedly "aided and abetted" the officers and directors in their breach.  

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Decision in DBSI Delays Motion for Summary Judgment

06/07/11

Summary

In an 11 page opinion published May 27, 2011, Judge Walsh granted a motion under F.R.C.P. 56(d) and quoted another opinion which says “where the facts are in possession of the moving party a continuance of a motion for summary judgment for purposes of discovery should be granted almost as a matter of course.” Judge Walsh’s opinion is available here (the “Opinion”).

Background

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Decision in WL Homes, LLC Explores the Powers of an Agent of Both a Parent and Its Subsidiary

06/07/11

Summary

In an 21 page opinion published May 25, 2011, Judge Shannon ruled that, “the fact that an agent may represent more than one principal does not alter the well-established doctrine that an agent with authority is capable of binding its principal.” Opinion at *2-3. Judge Shannon’s opinion is available here (the “Opinion”).
 

Background

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Visteon Corporation Files Preference Actions Against Creditors

05/29/11

Introduction

Last week, Visteon Corporation began filing preference complaints against hundreds of current and former creditors of the company. This post will look briefly at the nature of Visteon’s business, why the company filed for bankruptcy, as well some of the likely “next steps” now that the company has filed its preference complaints.

The Bankruptcy Filing

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Decision in In Re: Donna K. Brady Holds: Officers Aren't Contractors

05/25/11

Summary
In an 11 page opinion published May 18, 2011, Judge Shannon ruled that, in the context of a motion to dismiss, the officer of a corporation, which is itself a contractor, is not also a contractor by virtue of her position within the corporation. Judge Shannon’s opinion is available here (the “Opinion”).

Background

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Decision in Point Blank Solutions Helps Define "Core" and "Non-Core"

05/24/11

Summary

In an opinion published May 20, 2011, Judge Walsh held that a settlement agreement which is rejected in a bankruptcy proceeding is “Core” and will be decided by the Bankruptcy Court, even when it contains a jurisdictional clause that requires the agreement to be interpreted according to the laws of New York. Judge Walsh’s opinion is available here (the “Opinion”).

Background

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Another Minor Fix to a Previous Opinion - New Century TRS Holdings, Inc.

05/24/11

Judge Carey released an order amending his Memorandum Opinion dated May 10, 2011 in the New Century TRS Holdings, Inc. bankruptcy. His previous opinion had misstated the amount of a settlement between the two parties in the adversary proceeding which gave rise to the opinion.

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Minor Fix to a Previous Opinion - NEC Holdings Corp.

05/19/11

Judge Walsh released an amended Opinion in the NEC Holdings Corp. case on May 18, 2011. His previous opinion had an incomplete citation of 28 U.S.C. § 157(b)(2). It shows just how serious our judges are about the Bankruptcy Code.

In an effort to keep followers of this blog fully apprised of every opinion released by the Delaware Bankruptcy Court, I have linked to Judge Walsh’s newly corrected opinion here.

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