Summary:
ECP was retained, prior to the bankruptcy filing by the Debtor, to sell certain of the Debtor's properties. The listing agreement included a provision that the Debtor would seek to employ ECP in the event bankruptcy was filed. ECP was, in fact, approved by the Court to sell the properties. Unfortunately, following the objection by the lienholder, the sale of the properties was ultimately not approved, as it did not satisfy the requirements of 11 U.S.C.
Summary:
While the secured classes in the Chapter 11 accepted the plan, none of the unsecured creditors cast ballots and the class was deemed to have rejected the plan. The Debtor was, however, given an additional 14 days to obtain ballots. Otherwise, the Debtor would be allowed to file an amended plan, where the principal could purchase the equity interest in the Debtor.
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Summary:
The Debtor proposed a plan that would have paid roughly a 3.8% dividend to general unsecured claims, but would have separately classified his non-dischargeable student loans and paid them in full. The general unsecured class did not accept this plan.
11 U.S.C.
Summary:
Smithville Crossings’ Chapter 11 plan was confirmed wherein the Richardsons, the Debtor’s sole equity owners, agreed to grant a lien to creditor Rialto of unencumbered real estate, if the Richardsons were able to retain their ownership in Smithville Crossings. The plan provided that the Richardsons would pay $10,000 to purchase that ownership interest and invited competing bids. The highest bidder, however, was neither the Richardsons nor Rialto, but a subsidiary of Rialto.
The bankruptcy court held that such an equity auction following confi
Outside of bankruptcy, the right of a secured creditor to "credit bid" allows the secured creditor to compete with cash bids in foreclosure to assure that the secured creditor’s collateral is not sold for less than the secured creditor thinks it is worth.
This paper is inspired directly by two articles coauthored by Professors Bebchuk and Fried, which comprehensively questioned the efficiency of the bankruptcy priority awarded to secured claims. It starts by pointing out the following efficiency benefit of such priority largely unmentioned in the legal literature, including the Bebchuk and Fried articles: the priority of secured debts undermines borrowers’ incentives to pursue excessively risky investment projects under certain circumstances.
Summary:
The Chapter 11 Plan for LLM provided that for the eventual reamortization of two notes, partially based on cash flow. Ten years later when it came to recapitalize the notes, LLM and the note holder disagreed by nearly $5 million on the amount.
Each party presented evidence from their separate accountants. The note holder's accountant, however, included hypothetical figures into her calculation for "demonstrative purposes" and the court found there was no factual basis for these asserted amounts.
Summary:
National Heritage Foundation, Inc. ("NHF") filed a Chapter 11 reorganization including provisions in its plan that prevented claim not only against NHF, but also its officers, directors and employees (among others), for acts or omissions arising prior to the reorganization. The bankruptcy court affirmed these release provisions, finding that these release provisions were "essential" to the reorganization.
On appeal, Berhman contended that the plan was not proposed in good faith and was "a sham perpetrated by NHF’s officers and directors to secure immunit
Summary:
A few hours prior to a foreclosure sale, 15 parcels of real property were transferred to the Debtors by three corporations owed by the Debtors. The Debtors shortly thereafter filed Chapter 11. BB&T commenced an Adversary Proceeding seeking to avoid the transfers as fraudulent conveyances and because some were made ultra vires and brought a Motion for Summary Judgment.
In determining whether a transfer was a fraudulent conveyance the court first turned to the non-exclusive list of factors found in N.C. Gen. Stat.
