On Bankruptcy and Mediation
A reasonable and necessary path (photo by Marilyn Swanson) By: Donald L Swanson A Subchapter V Trustee is entitled to allowance of fees, even when the Subchapter V case is dismissed for lack of authority to file the case. That's the December 16, 2021, ruling in In re Besthost Inn LLC, Case No 21-12158 in the... Continue Reading →
A “single asset real estate”? (Photo by Marilyn Swanson) By: Donald L Swanson Rules for Subchapter V eligibility exclude a “single asset real estate” business. The operative statute provides: “Debtor’ . . . [in Subchapter V] means a person engaged in commercial or business activities . . . excluding a person whose primary activity is the... Continue Reading →
Election (photo by Marilyn Swanson) By: Donald L Swanson A new Bankruptcy Court opinion applies the § 1111(b) election and its two-step test in the context of a Subchapter V plan confirmation. The opinion is In re Topp’s Mechanical, Inc., Case No. 21-40038, Nebraska Bankruptcy Court (issued November 23, 2021, Doc. 94). What follows is an... Continue Reading →
Sunset (photo by Marilyn Swanson) By: Donald L Swanson So . . . here we go again. We’re four months from a “sunset” of the $7.5 million limit for Subchapter V eligibility. And we’ve heard nothing from Congress about extending that limit. Everyone agrees that the $7.5 million limit is a good thing . . .... Continue Reading →
11 U.S.C. Sec. 1183(b)(7) — Duty to facilitate By: Donald L Swanson What follows is a script (more or less) of a portion of a seminar presentation I recently gave. Duty to "Facilitate" Every Subchapter V trustee has a statutory duty to “facilitate the development of a consensual plan of reorganization.” This is a brand-new duty:... Continue Reading →
"Commercial or business activity"? (photo by Grant Swanson) By: Donald L Swanson Bankruptcy courts continue struggling with the meaning of the phrase “commercial or business activities” for Subchapter V eligibility. That’s especially true when a debtor’s business liquidates before the bankruptcy is filed. However, the distinct trend of such struggle is toward a liberal construction of... Continue Reading →
11 U.S.C. § 1191(c)(2) By: Donald L Swanson Subchapter V of Chapter 11 authorizes a reorganization plan to have a term of three to five years. Here is the precise language involved, in § 1191(c)(2)(A)&(B): “in the 3-year period, or such longer period not to exceed 5 years as the court may fix.” So . .... Continue Reading →
https://youtu.be/0kEXfRwXDSg By: Donald L Swanson The Mediation Committee of the American Bankruptcy Institute promotes mediation as a tool for resolving bankruptcy disputes. The new statutory duty of a Subchapter V trustee to “facilitate the development of a consensual plan of reorganization” (under § 1183(b)(7)) is a mediator-like role, which finds a home in ABI’s Mediation Committee.... Continue Reading →
11 U.S.C. Sec. 1183(b)(7) — Duty to facilitate The following article is reprinted with permission from the American Bankruptcy Institute—originally published in its Mediation Committee Newsletter. Here is a link to the original publication, dated 6/30/2021. By: Hon. Louis H. Kornreich, David A. Mawhinney & Donald L Swanson The Bankruptcy Code directs the trustee in... Continue Reading →
Webinar -- Promotional Notification By: Donald L Swanson What follows is a script (more or less) of my portion of a panel presentation in an webinar, presented on September 14, 2021, sponsored by the Mediation Committee of the American Bankruptcy Institute ("ABI"), titled "Facilitation Skills for Subchapter V Trustees." A video of the webinar appears at... Continue Reading →
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