Equity

GSE Environmental – Equity is Equity, Even when Owed.

07/18/16

In a 5 page decision signed July 18, 2016, Judge Walrath of the Delaware Bankruptcy Court ruled on a Motion for Judgment on the pleadings that undelivered stock options, are not debt, but are instead equity. Judge Walrath’s opinion is available here (the “Opinion”).  This decision was made in the GSE Environmental case, Adversary No. 16-50377 (MFW).

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Supreme Court Lays Down the Law in Law v. Siegel

03/05/14
In a unanimous decision, the Supreme Court struck down the Ninth Circuit’s imposition of an equitable surcharge against a debtor’s exempt property in Law v. Siegel, No.
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Supreme Court Lays Down the Law in Law v. Siegel

03/05/14
In a unanimous decision, the Supreme Court struck down the Ninth Circuit’s imposition of an equitable surcharge against a debtor’s exempt property in Law v. Siegel, No.
[more]

Keeping Your Belongings in Bankruptcy

10/06/11

A common misunderstanding when a person files for bankruptcy is that they lose all their belongings. This is not true. A person filing bankruptcy is entitled to keep their belongings that are necessary for everyday living. This can include furniture, clothing, appliances, a car and other property. What belongings, or property, a person is entitled [...]

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Court Finds Recharacterization of "Loans" Depends on State Law

08/20/11
The Fifth Circuit has upheld a Texas bankruptcy court's order recharacterizing the ostensible debt of a non-insider as equity. Matter of Lothian Oil Incorporated, No. 10-50683 (5th Cir. 8/9/11). Unlike other circuits to consider the issue, the Fifth Circuit relied on Sec. 502(b) and Texas state law rather than the Court's equitable powers under Sec. 105. You can find the opinion here.
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Court Finds Recharacterization of "Loans" Depends on State Law

08/20/11
The Fifth Circuit has upheld a Texas bankruptcy court's order recharacterizing the ostensible debt of a non-insider as equity. Matter of Lothian Oil Incorporated, No. 10-50683 (5th Cir. 8/9/11). Unlike other circuits to consider the issue, the Fifth Circuit relied on Sec. 502(b) and Texas state law rather than the Court's equitable powers under Sec. 105. You can find the opinion here.
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American Home Mortgage - Wrapping Up

04/29/11

We have been getting a number of calls about the American Home Mortgage, Inc. bankruptcy, and since I don’t enjoy giving people bad news, I crafted this post to inform you of the worst of it.

On November 30, 2010, the bankruptcy Plan of American Home Mortgage became effective. The Plan is a thrilling page turner filled with Legal terminology and weighing in at over one hundred pages. A copy of the Plan is available here.

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