New analysis seen in single-asset cases
Article Abstract:
The US Court of Appeals for the 5th Circuit in Heartland Federal Savings & Loan Assn v. Briscoe Enterprises and two bankruptcy court decisions, In re D & W Realty Corp. and In re ZRM-Oklahoma Partnership, have broken with a trend prohibiting the classification of unsecured-deficiency claims made by mortgage lenders separately from those of other unsecured creditors. If the 5th Circuit rationale is followed by other courts, debtor leverage over 'undersecured mortgage lenders' will increase and the debtor will have a better chance of cramming down a Chapter 11 plan which a mortgage lender has not accepted.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1993
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Manville ruling leaves things unsettled
Article Abstract:
The Second Circuit has vacated a judgment changing the payment structure of the Manville Personal Injury Settlement Trust. The court held that the restructuring violated Federal Rule of Civil Procedure 23 since there was inadequate provision for subclasses to represent conflicting interests within the class action. The court also found the alteration of a substantially performed Chapter 11 reorganization to violate Bankruptcy Code Section 1127(b). The class action's purpose had been to compel trust beneficiaries to agree with the restructuring through the action's settlement.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1993
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High court: two cases, two directions
Article Abstract:
Union Bank v Wolas and Dewsnup v Timm are two important bankruptcy-related holdings issued by the Supreme Court in 1992. In Wolas, the court stated that the ordinary-course-of-business exception to the priorities of claims and liens laws in Title 11 of the US Bankruptcy Code may cover payments on a long-term debt made by a debtor. In Dewsnup, the court refused to let a debtor 'strip down' a lien on its property to the judicially determined property value.
Publication Name: The National Law Journal
Subject: Law
ISSN: 0162-7325
Year: 1992
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- Abstracts: Key libel case goes to trial; ruling on altered quotes is put to test. Libel suit spotlights rap 'hate-speak.' (suit against rap group N.W.A. by television host Denise Barnes)
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