Lawrence J. Kotler

December 20, 2024 | The Legal Intelligencer

Addressing a matter of first impression, the bankruptcy appellate panel for the U.S. Court of Appeals for the Ninth Circuit (BAP) recently held that fully secured, nonrecourse creditors qualify as “countable” creditors for purposes of determining the viability of an involuntary bankruptcy petition under Section 303(b) of the U.S. Bankruptcy Code.

By Lawrence J. Kotler and Geoffrey A. Heaton

7 minute read

November 08, 2024 | The Legal Intelligencer

In this case, the issue was whether the president was authorized to do so. In a recent decision issued on Sept. 30, 2024, the U.S. Bankruptcy Court for the Eastern District of Michigan examined this fundamental question of basic corporate governance and provided guidance to bankruptcy practitioners who may face similar questions in the future.

By Lawrence J. Kotler and Drew S. McGehrin

8 minute read

September 27, 2024 | The Legal Intelligencer

In the case of Avion Funding v. GFS Industries (In re GFS Industries), the U.S. Court of Appeals for the Fifth Circuit held that corporate debtors that elect to proceed under Subchapter V of Chapter 11 are, pursuant to Section 1192 of the Bankruptcy Code, subject to the discharge exceptions set forth in Section 523 of the Bankruptcy Code.

By Lawrence J. Kotler and Elisa Hyder

7 minute read

August 12, 2024 | The Legal Intelligencer

The court found that the simple administration of certain ownership interests of retail cannabis dispensaries "is not in and of itself necessarily equivalent to administering marijuana assets." And, as such, a Chapter 7 trustee could administer and monetize these ownership interests without violating the law.

By Lawrence J. Kotler and Ryan Spengler

7 minute read

June 24, 2024 | The Legal Intelligencer

In a recent published decision, the U.S. Court of Appeals for the Ninth Circuit addressed a previously unresolved question in that circuit: whether a debtor's failure to properly schedule a debt in an "asset case" renders the debt nondischargeable.

By Lawrence J. Kotler and Geoffrey A. Heaton

7 minute read

May 20, 2024 | The Legal Intelligencer

The Bankruptcy Code has excepted certain debts that are incapable of being discharged as a matter of right, including, without limitation, certain "qualifying" loans used to fund a debtor's education. For a debtor to be able to receive a discharge of such loans, the debtor must file a lawsuit and obtain a judgment determining their dischargeability.

By Lawrence J. Kotler and Drew S. McGehrin

8 minute read

April 24, 2024 | Delaware Business Court Insider

The equity owner asserted that the confirmation order that was previously entered by the court should be revoked based on the equity owner's claim that value was lost due to improper sale and marketing efforts by the debtors and its professionals both pre- and post-bankruptcy and, as such, they should have been "in the money" and entitled to a distribution under the confirmed plan.

By Lawrence J. Kotler

11 minute read

March 22, 2024 | The Legal Intelligencer

Small businesses seeking to reorganize should be mindful of this growing area of case law as they weigh their different reorganization options including, importantly, where they choose to reorganize and what type of reorganization chapter they should pursue.

By Lawrence J. Kotler and Elisa Hyder

8 minute read

February 02, 2024 | The Legal Intelligencer

In In re Kojima, the U.S. District Court for the Central District of California (the court) affirmed a bankruptcy court's order approving a Chapter 7 trustee's proposed settlement of cannabis-related state court claims held by creditors of the estate.

By Lawrence J. Kotler and Ryan Spengler

7 minute read

December 05, 2023 | The Legal Intelligencer

During the course of their bankruptcy case, the debtors filed a second plan of reorganization (the plan), in which they referenced a potential and unliquidated claim against an entity known as "ED&F Man." Although this "claim" was also listed on the debtors' schedules, no version of the plan or disclosure statement specifically identified the defendant by name or explained the nature of the claim the debtors intended to assert against this entity.

By Lawrence J. Kotler

8 minute read