Monday, April 23, 2012

Bankruptcy Sales:
Not So Free and Clear


Denise Frederico was injured October 15, 2008, when the FedEx truck she was driving hit a telephone pole, allegedly because the truck was defective.  The truck was manufactured in 1994 by Grumman Olson Industries, Inc. (“Grumman”).  In 2009, Ms. Frederico and her husband brought suit in New Jersey Superior Court and subsequently amended the complaint to assert that Morgan Olson, LLC (“Morgan”) was liable under the doctrine of product-line successor liability because Morgan continued Grumman’s product line.

Wednesday, April 11, 2012

Student Loan Relief:
Is Change on the Horizon?

Student-loan relief has recently become a hot topic.  Several studies suggest that student-loan debt now exceeds $1 trillion – or what the National Association of Consumer Bankruptcy Attorneys calls, the next “debt bomb.” 

Wednesday, April 4, 2012

9th Circuit Bankruptcy Appellate Panel Permits
Separate Classification of Lender’s Unsecured
Deficiency Claim for Plan Voting Purposes

When a debtor wishes to confirm a Chapter 11 plan, it is required to obtain the acceptance of at least one class of creditors holding impaired claims. In deciding which creditors should be in which classes it is generally required that similarly situated creditors be in the same class for voting purposes. This is a huge issue in real estate bankruptcy cases because, if the secured lender is substantially under-secured with a large unsecured deficiency claim, and if that claim is placed in the same class as the general unsecured creditors, a lender could vote against the plan and insure there is no class of creditors that actually accepts the plan.

U.S. Supreme Court to Hear
Argument on Credit Bid Case

On April 23, 2012, the United States Supreme Court is scheduled to hear oral argument in RadLAX Gateway Hotel v. Amalgamated Bank, Case No. 11-166. At issue is the interpretation of 11 U.S.C. § 1129(b)(2)(A) and whether a debtor can prevent a secured creditor from credit bidding in connection with a chapter 11 plan that proposed to sell the secured creditor’s collateral free and clear of any liens.