September 27, 2024 | The Legal Intelligencer
Fifth Circuit Sides With Fourth Circuit and Rules That Discharge Exceptions Apply to Corporate Subchapter V DebtorsIn the case of Avion Funding v. GFS Industries (In re GFS Industries), the U.S. Court of Appeals for the Fifth Circuit held that corporate debtors that elect to proceed under Subchapter V of Chapter 11 are, pursuant to Section 1192 of the Bankruptcy Code, subject to the discharge exceptions set forth in Section 523 of the Bankruptcy Code.
By Lawrence J. Kotler and Elisa Hyder
7 minute read
August 12, 2024 | The Legal Intelligencer
Potential Bankruptcy Relief for Individual Owner of Cannabis Businesses?The court found that the simple administration of certain ownership interests of retail cannabis dispensaries "is not in and of itself necessarily equivalent to administering marijuana assets." And, as such, a Chapter 7 trustee could administer and monetize these ownership interests without violating the law.
By Lawrence J. Kotler and Ryan Spengler
7 minute read
June 24, 2024 | The Legal Intelligencer
A Debtor's Failure to Properly Schedule a Debt in an 'Asset Case' Renders That Debt NondischargeableIn a recent published decision, the U.S. Court of Appeals for the Ninth Circuit addressed a previously unresolved question in that circuit: whether a debtor's failure to properly schedule a debt in an "asset case" renders the debt nondischargeable.
By Lawrence J. Kotler and Geoffrey A. Heaton
7 minute read
May 20, 2024 | The Legal Intelligencer
Always Ask for Permission and Never Forgiveness: Court Clarifies Self-Executing Nature of Certain Nondischargeable DebtsThe Bankruptcy Code has excepted certain debts that are incapable of being discharged as a matter of right, including, without limitation, certain "qualifying" loans used to fund a debtor's education. For a debtor to be able to receive a discharge of such loans, the debtor must file a lawsuit and obtain a judgment determining their dischargeability.
By Lawrence J. Kotler and Drew S. McGehrin
8 minute read
April 24, 2024 | Delaware Business Court Insider
Bankruptcy Court Rejects Equity Holder's Challenge to Revoke Confirmation Order in 'Virgin Orbit'The equity owner asserted that the confirmation order that was previously entered by the court should be revoked based on the equity owner's claim that value was lost due to improper sale and marketing efforts by the debtors and its professionals both pre- and post-bankruptcy and, as such, they should have been "in the money" and entitled to a distribution under the confirmed plan.
By Lawrence J. Kotler
11 minute read
March 22, 2024 | The Legal Intelligencer
Ninth Circ. Bankruptcy Appellate Panel: Corporate Debtors in Subchapter V Are Not Subject to Discharge ExceptionsSmall businesses seeking to reorganize should be mindful of this growing area of case law as they weigh their different reorganization options including, importantly, where they choose to reorganize and what type of reorganization chapter they should pursue.
By Lawrence J. Kotler and Elisa Hyder
8 minute read
February 02, 2024 | The Legal Intelligencer
Mere Presence of Cannabis Near a Bankruptcy Case Does Not Automatically Preclude ReliefIn In re Kojima, the U.S. District Court for the Central District of California (the court) affirmed a bankruptcy court's order approving a Chapter 7 trustee's proposed settlement of cannabis-related state court claims held by creditors of the estate.
By Lawrence J. Kotler and Ryan Spengler
7 minute read
December 05, 2023 | The Legal Intelligencer
'Tew': A Primer on Post-Confirmation Bankruptcy JurisdictionDuring the course of their bankruptcy case, the debtors filed a second plan of reorganization (the plan), in which they referenced a potential and unliquidated claim against an entity known as "ED&F Man." Although this "claim" was also listed on the debtors' schedules, no version of the plan or disclosure statement specifically identified the defendant by name or explained the nature of the claim the debtors intended to assert against this entity.
By Lawrence J. Kotler
8 minute read
November 02, 2023 | The Legal Intelligencer
Bankruptcy Court Sides With Cannabis Business (Twice) in Reorg PlanThis ruling may result in more cannabis-related bankruptcy filings as sophisticated bankruptcy attorneys now have a framework for testing the trustee's historic opposition to bankruptcy protection for cannabis companies.
By Lawrence J. Kotler and Ryan Spengler
8 minute read
September 28, 2023 | The Legal Intelligencer
Chapter 5 Avoidance Actions Can be Sold to Creditors Under Section 363(f) of the Bankruptcy CodeIn In re Simply Essentials, the U.S. Court of Appeals for the Eighth Circuit (the Eighth Circuit) affirmed a bankruptcy court's ruling that avoidance actions constitute salable property of the debtor's bankruptcy estate.
By Lawrence J. Kotler and Malcolm Bates
6 minute read
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