Tag Archives: claim determination

Fraudulent Transfer: “Reasonably Equivalent Value” Meets Debt Recharacterization

Official Comm. of Unsecured Creditors v. Hancock Park Capital II, L.P. (In re Fitness Holdings International, Inc.), 714 F.3d 1141 (9th Cir. 2013) – A chapter 11 unsecured creditors’ committee sought to recover payments made to the debtor’s shareholder as a fraudulent … Continue reading

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Cross-Collateralization: Your Dragnet Clause May Have at Least a Little Hole In It

Peoples National Bank, N.A. v. Banterra Bank, 719 F.3d 608 (7th Cir. 2013) – In this case, the district court had reversed the bankruptcy court – holding that a standard dragnet clause in a mortgage was not sufficient to secure a … Continue reading

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Cross-Collateralization: Beware the Intricacies of Local Real Estate Law

Hari Aum, LLC v. First Guar. Bank (In re Hari Aum), 714 F.3d 274 (5th Cir. 2013) – A debtor and its lender sought a determination of whether a mortgage on the debtor’s motel secured only a loan to the debtor, … Continue reading

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Lease Claims: Sometimes Privity Matters

In re Parrott Broadcasting Ltd. P’ship, 492 B.R. 35 (Bankr. D. Idaho 2013) – A chapter 7 trustee objected to a proof of claim filed by a landlord for rent and late charges due under a lease.  The debtor was an assignee … Continue reading

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Failure to Negotiate Mortgage Note: “Strong Arm” Powers With A Twist

Rogan v. Vanderbilt Mortgage & Finance, Inc. (In re Dorsey), 491 B.R. 464 (Bankr. E.D. Ky. 2013 – A chapter 7 trustee sought to use his “strong arm” powers as a hypothetical judgment lien creditor, arguing that a mortgage could be avoided … Continue reading

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Equitable and Mandatory Subordination: The Disappearing Claim

NTP Marble, Inc. v. Papadopoulos (In re NTP Marble, Inc.), 491 B.R. 208 (Bankr. E.D. Pa. 2013) – Prior to bankruptcy, a claimant obtained a $4 million judgment, which supposedly represented one-third of the value of the debtor’s business.  The debtor filed … Continue reading

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