Alana A. Lyman

In the Eleventh Circuit (In re Al Zawawi), section 109(a)’s debtor eligibility requirements do not apply to chapter 15 cases, reinforcing a split between the Second and Eleventh Circuits.

Source: ABI Journal

The Fifth Circuit recently held that claims and defenses arising from an indemnification agreement with a debtor could not be asserted against a liquidation trust because the chapter 11 plan barred those claims and defenses, and the trust was not a successor-in-interest to the debtor.

Lacking a common scheme or plan, two adjacent commercial condominium units owned by the same debtor and subject to the same mortgage and deed, but having different tenants, commercial uses, plans for commercial development and lot numbers, did not qualify as “single asset real estate” for bankruptcy purposes.

In rejecting an incidental beneficiary’s cure claim, the Second Circuit reasoned that affording a non-party administrative priority “would let it cut the line and stand in front of even secured creditors in exchange for nothing.”

Cross-practice team led by members of Pillsbury’s Insolvency & Restructuring practice advised Rockley on its prepackaged chapter 11 plan, which substantially deleveraged its balance sheet and injected additional funding into the company.

The Ninth Circuit became the first circuit-level court to address the correct rate of interest for unimpaired, unsecured creditors of a solvent chapter 11 debtor.