Bankruptcy

Recent Posts

No More Ugly American: Judge Refuses to Allow Madoff Trustee to Pursue Foreign Indirect Investors
Posted on 23 Jul 2014 by Kelley Drye & Warren LLP

by Ben Feder Judge Jed S. Rakoff of the Southern District of New York last week ruled that the U.S. Bankruptcy Code does not permit a bankruptcy trustee to recover foreign transfers [ an enhanced version of this opinion is available to lexis.com subscribers... Read More

Energy Future Holdings' Make-Whole Ruling Extends Rationale of Important SDNY Decisions to Delaware
Posted on 1 Apr 2015 by Kelley Drye & Warren LLP

by Ben Feder Judge Christopher Sontchi issued a notable opinion last week in the bankruptcy case of Energy Future Holdings Corp. , et al . (“EFH”), Case No. 14-10979 (D. Del.), ruling that the repayment in full of certain senior secured... Read More

Can a Receiver and a Trustee, Who Are the Same Person, Settle with Himself?
Posted on 18 Jul 2014 by Kathy Bazoian Phelps

Thomas J. Petters’ $3.65 billion Ponzi scheme has raised all kinds of interesting legal issues, the most recent of which involves the interplay between Thomas Petters’ individual receivership estate and the bankruptcy of Petters’ companies... Read More

U.S. Supreme Court Denies Hearing on Liquidation of Assets Belonging to Bankrupt Farm
Posted on 19 May 2014 by James Cordrey

WASHINGTON, D.C. — (Mealey’s) The U.S. Supreme Court today refused to hear a case in which a Chapter 11 debtor, which was also a farm, argued that the Chapter 11 trustee wrongly liquidated its assets in violation of the Bankruptcy Code ( Robert... Read More

How Much Control Does a Trustee Have in a Ponzi Scheme Case?
Posted on 21 Jan 2014 by Kathy Bazoian Phelps

Consider three recent events in the Bernard Madoff Ponzi scheme case, which demonstrate a certain unevenness and perhaps even inconsistency in the authority vested in the trustees who are administering these types of cases. Trustees act under the authority... Read More

Supreme Court Rules Debtor Entitled to Funds Remaining Upon Conversion of Chapter 13 Case
Posted on 20 May 2015 by Stephen Sather

Acknowledging that the statutory language "does not say expressly" what should happen, the Supreme Court nevertheless ruled that undistributed funds held by the Chapter 13 trustee should be returned to the debtor following a conversion. The... Read More

TelexFree Trustee Seeks Approval For "Unprecedented" Electronic Claims Process
Posted on 12 Oct 2015 by Jordan D. Maglich

"The Debtors’ operations constituted a massive Ponzi /pyramid scheme." - Court appointed trustee Stephen B. Darr The court-appointed Bankruptcy trustee responsible for marshaling assets for victims of the massive alleged $3 billion... Read More

Ponzi Scheme Trustee’s Claws Do Not Always Reach Overseas
Posted on 22 Jul 2014 by Kathy Bazoian Phelps

Bankruptcy trustees often sue to avoid and recover fraudulent transfers pursuant to the provisions of the Bankruptcy Code. These are often referred to as “clawback” actions. Transfers of property of a debtor may be avoided pursuant to section... Read More

Jumping Through Hoops to Get Trustee Standing in Ponzi Scheme Cases
Posted on 29 Jan 2014 by Kathy Bazoian Phelps

In Ponzi scheme cases, the issue of trustee standing to bring third party claims can be very challenging. The Supreme Court has made clear that a trustee may pursue the debtor’s claims against third party defendants, but may not pursue creditors’... Read More

Ninth Circuit Gives Some Protection to Both Bloggers and Trustees
Posted on 23 Jan 2014 by Stephen Sather

The case of self-proclaimed "investigative blogger" Crystal Cox took another turn as the Ninth Circuit reversed and remanded the case against her. The decision gives greater First Amendment protection to bloggers than the stingy view taken by... Read More

Professor Kenneth N. Klee on the Supreme Court's Holding in Harris v. Viegelahn
Posted on 27 May 2015 by Kenneth Klee

Professor Kenneth N. Klee analyzes the May 18, 2015, ruling in Harris v. Viegelahn, 2015 U.S. LEXIS 3203 [ an enhanced version of this opinion is available to lexis.com subscribers ], in which the Supreme Court unanimously held that when a chapter 13... Read More