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Showing 6 posts recarding Judge Peter J. Walsh.

Underwater Lender Could Not Be Compelled To Accept Money Satisfaction Of Its Property Interests; Sale Free And Clear Under 363(f) Denied

In re Ferris Props., Inc., No. 14-10491 (MFW), 2015 WL 4600248 (Bankr. D. Del. July 30, 2015)

On July 30, 2015, the Delaware Bankruptcy Court denied a debtors’ request to sell properties free and clear of liens and encumbrances pursuant to section 363(f) of the Bankruptcy Code, holding that the mortgagee, whose claim would not be paid in full from the sale proceeds, could not be compelled to accept a money satisfaction of its interests in the properties and did not consent to the sale.  A debtor may sell property free and clear of any interest in such property only if, among other things, the entity holding the interest consents or the “entity could be compelled, in a legal or equitable proceeding, to accept a money satisfaction of such interest.”  11 U.S.C. § 363(f)(2) & (5). In Ferris, the mortgagee did not consent to the sale.  Despite the proposed buyer’s argument that the mortgagee could still be compelled under section 1129(b)(2)(A) to accept a money satisfaction of its liens, the Court disagreed.  Section 1129(b)(2)(A) governs the “cram down” of secured claims in the plan confirmation context.  Judge Walrath questioned whether such provision provides for a qualifying “legal proceeding” under section 363(f)(5), noting that the courts are in disagreement over this issue.  Moreover, and more importantly, neither the debtors nor the proposed purchaser demonstrated that a section 1129(b)(2)(A) cram down could even be effectuated with respect to the mortgagee’s secured claim.  There was no showing that the mortgagee would retain its liens, receive deferred cash payments totaling at least the allowed amount of its claim, or would receive the indubitable equivalent of its claim – the three possible avenues of cram down under section 1129(b)(2)(A).  Accordingly, both the argument and the sale failed. Read More ›

Vacant No More – Judge Walsh’s Successor Announced

The Office of the Circuit Executive for the United States Third Circuit announced today that Laurie Selber Silverstein, Esq., of Potter Anderson Corroon LLP, has been tentatively selected to fill Judge Walsh’s vacant seat on the Delaware Bankruptcy Court following His Honor’s retirement at the end of this year.  Ms. Silverstein currently heads the Bankruptcy and Corporate Restructuring practice of Potter Anderson and has over 27 years of experience in the field. Read More ›

Lengthy Service Oversight Causes the Bankruptcy Court to Dismiss Preference Claims

Forman v. Mentor Graphics Corp. (In re Worldspace, Inc.), Adv. No. 10-53286 (PJW), (Bankr. D. Del. June 5, 2014)

On June 5, 2014, Judge Walsh granted a motion to dismiss filed by a preference defendant, holding that the amended complaint which added the defendant to the proceeding could not relate back to the date of the original complaint under Federal Rule of Civil Procedure 15(c)(1)(C) so as to avoid the expiration of the applicable statute of limitations.  In rendering his decision, Judge Walsh found significant the plaintiff’s failure to properly serve the original defendant with five of its nine motions to extend time to serve process of the original complaint. While the Court does not condemn the use of extension motions to facilitate a reorganization or to serve an equitable or procedural purpose, this Opinion serves as a warning to plaintiffs’ counsel who delay effectuating service of a complaint until after the expiration of the applicable statute of limitations. Read More ›

The Honorable Peter J. Walsh of the Bankruptcy Court for the District of Delaware Announces Retirement

In a short statement posted on the Court’s website today, it was announced that effective January 1, 2015 Judge Walsh will step down from the bench after almost twenty-two years of service. Read More ›

Federal False Claims Act Proof of Claim Disallowed

In re ATLS Acquisition, LLC, No. 13-10262 (PJW), 2014 WL 490931 (Bankr. D. Del. Feb. 6, 2014)

In this lengthy 71-page Opinion, the Honorable Peter J. Walsh tackled the reverse claims provision of the Federal False Claims Act, see 31 U.S.C. § 3729(a)(7) (2006), infrequently opined upon by, or relevant to, the Delaware Bankruptcy Court.  The Court granted summary judgment for the Debtors disallowing the claimant's claim in its entirety. Read More ›

Claimant Not Considered an "Employee" of the Debtor, Denied Administrative Claim for Severance

In re World Health Alternatives, Inc. et al., No. 06-10166 (PJW) (Bankr. D. Del. Jan. 14, 2014)

Despite a claimant's assertion that he was entitled to an administrative expense claim against debtor World Health Alternatives, Inc. ("World Health") for severance, the Court found, in this short letter ruling, that the evidence did not support such a claim. Read More ›