Tag Archives: CREDITORS

Delaware Court Holds that Creditors Have No Direct Cause of Action Against Directors of Compan

On May 18, 2007, the Supreme Court for the State of Delaware (the "Court") held that a creditor of a corporation that is operating within the zone of insolvency may not bring a direct action against the corporations directors for … Continue reading

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How do you value a Chapter 13 debtor’s business for purposes of the best interests of creditors test?

In a recent Michigan bankruptcy court decision, the court used the “going concern forced sale value” to value Chapter 13 debtor’s business for purpose of best interests of creditors test in Code § 1325(a)(4). The court was faced with determining … Continue reading

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California State Courts Continue to Validate Assignments for the Benefit of Creditors

In 2005, in a blow to assignments for the benefit of creditors ("ABC") in California, the Ninth Circuit in Sherwood Partners Inc. v. Lycos ("Sherwood I"), 394 F.3d 1198 (9th Cir. 2005), held that an assignee in an ABC cannot … Continue reading

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Are the Chapter 13 “Debt Limitations” determined by the creditors’ claims?

No. In a recent Illinois case, the court held that the Chapter 13 debt limits were determined by schedules filed in good faith, not by amount of thecreditor’s proof of claims. If your secured debts (mortgages and liens) add up … Continue reading

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Sears Won’t Close Yet as Its Chairman, Edward Lampert, Fends Off Creditors

Mr. Lampert, a hedge fund manager, was the only bidder in a closed-door auction this week who sought to keep Sears operating as a “going concern.” Read more detail on Recent Business Law posts –

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