Oak Creek Plaza, LLC v. Thrivent Financial for Lutherans, 579 B.R. 460 (N.D. Ill. 2017) –
The key issue in this case turned on interpretation of the recourse provisions of a mortgage note. The bankruptcy court held that the debtor’s bankruptcy filing triggered full recourse, which led to a series of orders ending with dismissal of the bankruptcy case. The debtor appealed to the district court. Continue reading
Mission Product Holdings, Inc. v. Old Cold LLC (In re Old Cold LLC), 879 F.3d 376 (1st Cir. 2018) –
A chapter 11 debtor sold substantially all of its assets to the successful bidder at an auction. The bankruptcy court order approving the sale was immediately effective. A losing bidder appealed, challenging the sale on a variety of grounds. The losing bidder did not obtain a stay of the sale pending appeal. Continue reading
A commercial landlord brought a state court action to determine the priority of its landlord lien versus a lender’s security interest in equipment located on the leased premises. Alternatively, the landlord sought rent payments from the lender. The case was removed to federal court due to the tenant’s bankruptcy filing, and the lender moved for summary judgment. Continue reading
Hurt v. HUD (In re Hurt), 579 B.R. 765 (Bankr. W.D. Va. 2017) –
The debtors sought to recover a federal tax refund that the United States Department of Treasury set off prebankruptcy in partial satisfaction of a foreclosure deficiency the debtors owed to HUD. The debtors argued that the refund should be turned over to the bankruptcy estate under section 542 of the Code since the setoff was a preference under section 547. Continue reading
A Chapter 11 debtor sought approval of a plan of reorganization that included a partial “dirt-for-debt” treatment of the mortgagee’s allowed secured claim. The bankruptcy court confirmed the plan over the mortgagee’s objections, the district court dismissed the mortgagee’s appeal as equitably moot, and the mortgagee appealed to the Fourth Circuit. Continue reading
In re Cherry Growers, Inc., 576 B.R.. 569 (Bankr. W.D. Mich. 2017) –
A chapter 11 debtor that purchased agricultural produce but also earned income from non-Perishable Agricultural Act (PACA) sources sought court authorization to use cash collateral. A PACA claimant objected to using property included in the PACA trust to fund the case. Continue reading
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