Category Archives: Financing

The Ivanhoe Rule: Double Recovery Is Not Permitted, But … (a/k/a Limitation-on-Dividend Approach Meets Reduction-of-Claim Approach)

In re Del Biaggio, 496 B.R. 600 (Bankr. N.D. Cal. 2012) – The creditors committee objected to proofs of claim filed by a group of unsecured lenders who had received partial payment from a non-debtor co-obligor, arguing that the claims should … Continue reading

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Mortgagee Relief: “Cause” Is In the Eye of the Beholder – Round 2

In re GEL, LLC, 495 B.R. 240 (Bankr. E.D. N.Y. 2012) – A mortgagee moved to dismiss two Chapter 11 bankruptcies that were filed by its mortgagors to prevent a scheduled foreclosure sale.  It also sought relief relating to the automatic … Continue reading

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Options for an Underwater Mortgagee: The Mysteries of an 1111(b) Election

In re River Canyon Real Estate Investments, LLC, 495 B.R. 526 (Bankr. D. Colo. 2013) – A chapter 11 debtor’s plan of reorganization placed two secured creditors in the same class.  (No one objected to this classification.) One of the creditors attempted … Continue reading

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Mortgagee Relief From the Automatic Stay: “Cause” Is In the Eye of the Beholder – Namely the Court

In re Doug Wilson Ins. Agency, Inc., 495 B.R. 428 (Bankr. E.D. Ark. 2013) – A debtor that owned several properties filed a chapter 11 bankruptcy proceeding on April 1st.  A bank that had mortgages on two of the properties moved for relief … Continue reading

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California Anti-Deficiency Laws: Is Your Trust Obligor a “True” Guarantor Or Merely a Primary Obligor in Disguise?

In re Brock, 494 B.R. 534 (Bankr. D. Colo. 2013) – Individual chapter 11 debtors objected to a deficiency claim filed by a bank.  They argued that California’s anti-deficiency laws prevented the bank from making a claim against the debtors under their … Continue reading

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Missing Mortgage Details: This Time a Mortgage Survives the Trustee’s Attack

PNC Bank, Nat’l Ass’n v. Nordwall, 499 B.R. 599 (C.D. Ill. 2013) – A mortgagee moved for entry of a default judgment in its foreclosure action.  The mortgagor’s chapter 7 trustee intervened and claimed that the mortgage could be avoided using his … Continue reading

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