Beginning in 2012, a distinguished group of bankruptcy attorneys, academics and judges known as the American Bankruptcy Institute (ABI) Commission to Study the Reform of Chapter 11 (the Commission) held periodic meetings throughout the U.S. to analyze and discuss comprehensive reforms to chapter 11 of the Bankruptcy Code. The results of their analyses and recommendations […]
Recommendations of the ABI Commission to Study the Reform of Chapter 11: Intellectual Property Licenses
Franchisor Strikes Out in Bankruptcy Court
Occasionally, a case comes along that shows how things can go wrong for a franchisor in bankruptcy court. Cumberland Coral, LLC, is just such a case. To learn more about the case and the issues raised for franchisors and franchisees, click on the link below to an article recently published by the online news site Hotel News Now: […]
How Bankruptcy Affects Franchise Agreements
Few assets in the hospitality industry are more valuable and important than the franchise agreements. The bankruptcy filing of a franchisor or a franchisee can greatly increase the uncertainty of how and when the provisions of a franchise agreement will be enforced. To learn more, click on the link below to an article recently published […]
The Power of a Trust Fund Claim: Paying Milk Producers First
The Texas Agricultural Code requires milk processors to hold funds in trust for the benefit of milk producers, including dairies and cooperatives. A trust fund is a powerful tool that will allow a milk producer to be paid ahead of other creditors in the event that a milk processor files bankruptcy. To learn more about […]
It Matters Whether an Agreement is “Executory”
A recent decision by the full contingent of judges from the Eighth Circuit Court of Appeals (covering seven Midwest states) demonstrates that a common bankruptcy term should be added to your vocabulary. That term is “executory.” To learn more, click on the link below to an article recently published by the online news site Hotel […]
Tenants Beware: Your Landlord’s Bankruptcy Could Result in a Lost Lease
It is unfortunate, but true: a commercial tenant may someday be required to deal with a bankrupt landlord. Any bankruptcy filing can be complicated and chaotic. But, a tenant faced with a landlord’s is more than just a creditor who is working to get paid. The tenant must closely monitor the landlord’s bankruptcy case to […]
5th Circuit Bankruptcy Summary: In re Harry P. Goaz, No. 13-10282 (5th Cir. March 19, 2014) (per curiam)
Rolex sued Harry P. Goaz in federal court for various causes of action related to Rolex’s allegation that Goaz sold and distributed fake Rolexes. Before the District Court was able to rule on a Rolex summary judgment motion, Goaz filed bankruptcy. The District Court abated the case, pending the outcome of the bankruptcy case. Rolex […]
5th Circuit Bankruptcy Summary: In re Mark Alan Frost, No. 12-50811 (5th Cir. March 5, 2014)
Debtor Mark Alan Frost filed bankruptcy, claimed his homestead as exempt and then sold it. Texas law provides that, to maintain homestead protection, a homeowner must reinvest sale proceeds in another homestead within six months. Frost failed to do that. The Bankruptcy Court held that the funds therefore were non-exempt and should be returned to […]
Dissent Written About In re BP RE, L.P., No. 12-51270 (5th Cir. Fed. 28, 2014)
This is not a decision by the Fifth Circuit, but rather a dissent written by Judge Higginson and joined by Judges Stewart, Jolly, Davis, Dennis and Graves. They are dissenting from the Court’s decision not to take a previous matter back up en banc. The prior decision was decided on November 1, 2013. (Click here […]
5th Circuit Bankruptcy Summary: In re Michael Vernon Shankle, No. 13-60252 (5th Cir. Feb. 7, 2014)
A divorce court entered a decree dividing up the assets of Michael Vernon Shankle and Dianne Shankle. Michael Vernon Shankle, contrary to the terms of the divorce decree, withdrew all funds from an investment account and spend them for his own benefit. An Arkansas state court later found Michael in contempt for failing to divide the […]