This case deals with the 12(b)(6) dismissal standard under the Twombly and Iqbal Supreme Court decisions. M&F alleged that it obtained a perfected security interest in accounts receivable of Fish & Fisher. Fish & Fisher later obtained a significant arbitration award against one of its clients and hired Coxwell to hold the award in trust and to distribute it […]
5th Circuit Bankruptcy Summary: In re Fish & Fisher, Inc., No. 13-60368 (5th Cir. Feb. 7, 2014)
5th Circuit Bankruptcy Summary: In re Green Hills Development Co., L.L.C., No. 12-60784 (5th Cir. Feb. 3, 2014)
Green Hills Development executed a promissory note to Credit Union Liquidity Services (CULS) for $14.5 million, secured by certain real estate. Green Hills Development later fell behind on the note and failed to pay the balance at maturity. Green Hills Development sued CULS in Texas state court for various causes of action, generally seeking to […]
5th Circuit Bankruptcy Summary: In re R.E. Loans, L.L.C., No. 13-10468 (5th Cir. February 5, 2013) (per curiam)
R.E. Loans (“REL”) raised funds to make real estate secured loans to real estate developers. In July 2007, REL entered into a senior secured credit facility with Wells Fargo. In November 2007, REL and its member-investors entered into an “Exchange Offering” wherein member-investors exchanged their equity interest in REL for junior secured notes issued by […]
5th Circuit Bankruptcy Summary: In re Denver Merchandise Mart, Inc., No. 13-10461 (5th Cir. Jan. 27, 2014)
The debtor executed a promissory note in favor of lender. The note has a clause allowing for acceleration of the debt upon default and another clause providing for a prepayment penalty. The acceleration clause said that upon a default the entire balance of the note, plus “other sums as provided in the note” become immediately […]
5th Circuit Bankruptcy Summary: In re Lothian Oil, No. 12-50462 (Jan. 7, 2014)
This is the latest in several Lothian Oil matters that have been heard by the Fifth Circuit in the last several years. Lothian Oil filed Chapter 11 in 2007 and confirmed a plan in 2009. Thereafter, an unofficial committee of shareholders, including several of the parties in this current case, filed a post-confirmation challenge to […]
5th Circuit Bankruptcy Summary: In re Kollinger, No. 13-40512 (5th Cir. Dec. 31, 2013).
Kollinger was a Chapter 7 debtor who had a judgment rendered against him in an adversary proceeding. His lawyer timely filed a notice of appeal and timely designated the record. But, once the appeal was docketed, his attorney did not timely file his appeal brief. In fact, he was 10 months late. He argued that […]
Preparing for a Franchisor Bankruptcy Filing
For franchisees, weathering a franchisor bankruptcy filing requires preparation, including obtaining a working knowledge of the particular issues raised in such a filing. To learn more, click on the link below to an article recently published by the online news site Hotel News Now: https://www.hotelnewsnow.com/Article/Index/13595
5th Circuit Bankruptcy Summary: Baker v. Cage (In re Whitley), No. 12-41125 (5th Cir. Dec. 16, 2013).
James Whitley was a serial bankruptcy filer and all around bad guy. He is currently serving a life sentence for sexually harassing a minor. About a month prior to that conviction, his latest Chapter 13 bankruptcy case had been dismissed with prejudice. On the same day as his criminal conviction, Whitley transferred two pieces of […]
5th Circuit Bankruptcy Summary: Clovis Prince v. Michele H. Chow, Chapter 7 Trustee (In re Clovis Prince), No. 13-40130 (5th Cir. Dec. 12, 2013)
Prior to filing Chapter 7 bankruptcy, the debtor transferred assets to a trust. The debtor was the trustee of the trust. After the filing, the Chapter 7 Trustee sued the debtor (in his capacity as trustee of the trust) seeking to recover the funds as a fraudulent transfer. The Chapter 7 Trustee won and the […]
5th Circuit Bankruptcy Summary: In re BP RE, L.P., 2013 WL 5975030
Right on the heels of the Frazin case, the Fifth Circuit has entered another opinion discussing Stern and whether parties can consent to the authority of the bankruptcy court to enter a final judgment. The case is In re BP RE, L.P., 2013 WL 5975030 (Nov. 11, 2013). The case involved BP RE, L.P. (“BPRE”) which filed Chapter 11 in […]