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No Dice: State Law Precludes Recovery of $50,000,000 Gaming License Fee

In 2007, Philadelphia Entertainment and Development Partners, LP dba Foxwoods Casino Philadelphia (“Plaintiff”) secured a gaming license from Pennsylvania for $50,000,000 with the understanding that it open its casino...more

Applying Jevic (Part 3): How Courts Are Interpreting and Applying the Supreme Court’s Ruling on Structured Dismissals and Priority...

The Bankruptcy Protector has previously provided a succinct summary of all cases decided post-Jevic. In this update, we discuss the cases decided between May 10, 2019 and November 27, 2019....more

The Sixth Circuit Sets Standard on Power Struggle at Play in Bankruptcy Proceedings Between a Federal Agency and its Federally...

In In re FirstEnergy Solutions Corp., 2019 WL 6767004 (6th Cir. Ct. App.), the United States Court of Appeals affirmed in part, reversed in part, and remanded to the bankruptcy court for further consideration, the...more

First Circuit: Only the Trustee may Pursue Causes of Action Against Ponzi Scheme Net Winners

The First Circuit Court of Appeals issued an opinion on October 29, 2019, in In re TelexFree, LLC, No. 18-2001, 2019 WL 5558088, at *1 (1st Cir. Oct. 29, 2019) that has significant consequences for ponzi scheme litigation in...more

At Odds with the First Circuit, the Seventh Circuit Adopts a Questionable Standard for Determining the Sufficiency of Financing...

In In re I80 Equip., LLC, 938 F.3d 866, 874 (7th Cir. 2019), the Seventh Circuit held that a financing statement under the Uniform Commercial Code sufficiently describes collateral by referring to an unattached security...more

Motorists Catch Break in Decades Long Fight Following First Circuit’s Holding on Request for Relief from Automatic Stay

In In re Financial Oversight and Management Board for Puerto Rico, 2019 WL 4667518 (1st Cir. 2019), the United States Court of Appeals affirmed in part and vacated in part the Article III court’s partial denial of Plaintiffs’...more

Ninth Circuit: No Consolidation Absent Notice to Creditors of Non-Debtors

In In re Mihranian, 2019 WL 4252115 (9th Cir. 2019), the Ninth Circuit Court of Appeals held, as a matter of first impression, that a party moving for substantive consolidation of the debtor's bankruptcy estate with the...more

Buyer Beware: Anti-Assignment Clause in Promissory Note Bars Claim Purchaser from Collecting in Bankruptcy

In In re Woodbridge Grp. of Companies, LLC, No. BR 17-12560-BLS, 2019 WL 4305444 (D. Del. Sept. 11, 2019), the United States District Court for the District of Delaware affirmed an opinion by Bankruptcy Judge Kevin Carey, and...more

Data Privacy and Bankruptcy—Notable Bankruptcy Code Provisions and Bankruptcy Rules

The Bankruptcy Protector recently discussed notable non-bankruptcy provisions that must be consulted to ensure compliance with privacy issues. In this post, we discuss notable Bankruptcy Code provisions and Bankruptcy Rules...more

Court Holds that Trustee May Recover Proceeds from Fraudulently Transferred Property

There is currently a split in authority on the issue of whether a trustee may recover from an immediate or mediate transferee if the recipient received proceeds from a fraudulent transfer but not the fraudulently transferred...more

Data Privacy and Bankruptcy—Notable Non-bankruptcy Privacy Laws

Privacy issues implicate several Bankruptcy Code sections and Bankruptcy Rules.  The debtor must also comply with non-bankruptcy rules concerning privacy to the extent that such rules are not inconsistent with the Bankruptcy...more

Third Circuit’s EFH Decision Is Another Blow to Senior Secured Creditors Attempting to Enforce Subordination Agreements

Earlier this year, the United States Bankruptcy Court for the Southern District of New York issued an opinion in BOKF NA v. Wilmington Sav. Fund Soc’y FSB (In re MPM Silicones LLC), Case No. 15-2280, 2019 WL 121003 (S.D.N.Y....more

Fifth Circuit Establishes Test for Determining Administrative Claim Status for a Drilling Contractor’s Post-Rejection Damages...

In a significant opinion for oil and gas industry bankruptcies, the Fifth Circuit in In re Whistler Energy II, LLC., No. 18-30940, 2019 WL 3369099 (5th Cir. July 26, 2019), issued a ruling setting forth the circumstances...more

Applying Jevic (Part 2): How Courts Are Interpreting and Applying the Supreme Court’s Ruling on Structured Dismissals and Priority...

Back in December of 2017, the Bankruptcy Protector provided a succinct summary of all cases decided post-Jevic through November 17, 2017. In this update, we discuss the cases decided between November 17, 2017 and May 10,...more

Tenth Circuit Addresses Issues of 363(m) and Equitable Mootness in a Nonbankruptcy Appeal

On January 3rd, the United States Court of Appeals for the Tenth Circuit issued an opinion in U.S. v. Parish Chemical Company, in which it addressed the issue of equitable mootness in a non-bankruptcy appeal....more

Bankruptcy Purchasers Beware: Fifth Circuit Holds that Unscheduled Patent License Automatically Rejected and Not Among Assets...

Affirming the lower court’s decision, the Firth Circuit recently held that a patent license purchased by a company in a bankruptcy sale was a rejected executory contract and could not have been transferred by the sale in...more

In re Millennium Lab Holdings: “All We Are Saying Is Give Nonconsensual Third-Party Releases a Chance”

District Court Confirms Bankruptcy Court’s Constitutional Authority to Approve Millennium Plan Releases, Dismisses as Equitably Moot Opt-Out Lenders' Remaining Issues on Appeal....more

Specific Personal Jurisdiction Exists over a Foreign Transferee in a Fraudulent Transfer Action

The United States Bankruptcy Court for the Northern District of California recently held that a resident of Hong Kong who purchased goods over the internet from a company in California was subject to personal jurisdiction in...more

High Court Faced with the Issue of Marijuana Legalization in Bankruptcy

It was only a matter of time before the budding state laws legalizing marijuana use ran up against the federal government’s treatment of the drug as a controlled substance – and what better place for the two sides to meet...more

First Circuit Holds that Asset Sale Appeals Are Moot Notwithstanding Jevic Violation

In Mission Product Holdings Inc. v. Old Cold LLC (In re Old Cold LLC), 879 F.3d 376 (1st Cir. 2018), the First Circuit held that a sale in possible violation of the Supreme Court’s Jevic decision does not allow an appellate...more

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