DelawareBankruptcyLitigation

Judge Carey Holds that Severance Claim is a Priority Claim

10/24/16

In an 8 page decision dated October 19, 2016, Judge Carey of the Delaware Bankruptcy Court overruled an objection to the reclassification of the claim of a terminated employee.  Judge Carey’s opinion is available here (the “Opinion”).  This employee (“Mangan”) was a fifteen year veteran of the Debtor, and was entitled to 15 weeks of severance pay upon termination.  That is not in dispute.

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Sanjel (USA) Inc. – Chapter 15 Creditors May Challenge Reach of Stay in Recognition Order

10/24/16

A recent decision by the United States Bankruptcy Court for the Western District of Texas in In re Sanjel (USA) Inc., et al., Case No. 16-50778-CAG (Bankr. W.D. Tex. July 29, 2016) explains that in a Chapter 15 case, the U.S. bankruptcy court will not always apply the law of the foreign jurisdiction to U.S.

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Lien Stripping in Bankruptcy

10/17/16

On October 11, 2016, Chief Judge Brendan L. Shannon of the Delaware Bankruptcy Court issued a letter ruling in which he opined on the appropriate valuation of a fist lien.  A copy of the Opinion is available here.

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United States Trustee Meeting Room Change

10/16/16

According to the United States Bankruptcy Court for the District of Delaware’s website, the meeting room for the United States Trustees has been changed from the second floor room 2112 to the third floor room of 3209 in the J. Caleb Boggs Federal Building, 844 N King Street, Wilmington DE 19801. The change went effective October 4th, 2016.

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Local Rules Comment Period

10/10/16

According to the United States Bankruptcy Court for the District of Delaware’s website, the Court has instituted an annual process to review and consider comments and revisions to its Local Rules.  See announcement here.  The comment period is October 1, 2016 through October 31, 2016.  All comments received will be considered by the Local Rules Committee. Revisions to the Local Rules will be effective February 1, 2017.

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Delaware Bankruptcy Court Now on Twitter

10/04/16

The Delaware Bankruptcy Court announced recently that it is now on Twitter.  You can follow the Court and receive various updates here: https://twitter.com/USCourtsDEB.

Carl D. Neff is a partner with the law firm of Fox Rothschild LLP.  You can reach Carl at (302) 622-4272 or at [email protected].

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Opinion in NewPage (Pirinate Consulting) is a Reminder of 547 Defenses

10/04/16

Over three years ago, in September 2013, Pirinate Consulting Group LLC, in its capacity as Litigation Trustee (the “Trustee”) of the NewPage Creditor Litigation Trust, began filing complaints in the Delaware Bankruptcy Court seeking the avoidance and recovery of what the Trustee alleges are preferential transfers.  You can read our summary of the initial preference filings here: Pirinate Consulting, Trustee in Ne

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Bankrutpcy Code Section 303(i) Does Not Preempt State Law Claims by Non-Debtors

09/27/16

In Rosenberg v. DVI Receivables XVII, LLC, 2016 WL 4501675 (3d Cir. August 29, 2016), the United States Court of Appeals for the Third Circuit held that Section 303(i) of the United States Bankruptcy Code does not preempt state law claims by non-debtors for damages arising from the filing of an involuntary bankruptcy petition.

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NJOY and Delivery Agent Formation Meetings Scheduled

09/26/16

It isn’t only the athletic-wear retailers going through bankruptcy (Sports Authority and Golfsmith), but retailers on the other end of the athletic spectrum – think t.v. and tobacco.

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