Delaware Bankruptcy Insider:
Be In The Know

About This Blog


The Delaware Bankruptcy Insider is a premier blog designed to bring its readers a comprehensive analysis of the latest Delaware corporate bankruptcy news and rulings.  Brought to you by Ashby & Geddes, P.A.

Get Updates By Email

Topics

Judges

Recent Posts

Helpful Links


Federal Courts App
 (iTunes)
Federal Courts App (Google Play)
The Bankruptcy Code
Delaware Bankruptcy Court                                                                          Delaware Bankruptcy Court - Local Rules and Orders
Delaware District Court
Third Circuit Court of Appeals
U.S. Supreme Court
The United States Courts
Office of the United States Trustee for the Third Circuit
Delaware Bankruptcy American Inn of Court

For more information


Karen B. Skomorucha Owens, Esq.
(302) 504-3725
kowens@ashby-geddes.com

Ashby & Geddes, P.A.
500 Delaware Avenue
P.O. Box 1150
Wilmington, Delaware 19899-1150
(302) 654-1888               

Showing 4 posts in Standing.

No Direct Claims Asserted By Oklahoma Plaintiffs In SemCrude Bankruptcy, Third Circuit Reinstates Permanent Injunction

In re SemCrude L.P., 2015 WL 4635798, --- F.3d ---- (3d Cir. Aug. 5, 2015)

In a recent precedential Opinion, the Third Circuit reversed a Delaware District Court Opinion and reinstated the Bankruptcy Court’s original Opinion, holding that certain claims brought by a group of SemCrude’s former limited partners (the “Oklahoma Plaintiffs”) against Thomas L. Kivisto, co-founder and former President and CEO of SemCrude L.P. (together with its affiliates, the “Debtors”) were derivative of other claims already brought and settled.  As such, the Third Circuit directed the Bankruptcy Court to enter a permanent injunction against the Oklahoma Plaintiffs’ claims. Read More ›

Continuous Insolvency Requirement and Irretrievable Insolvency Test Held By Delaware Chancery Court Inapplicable in Creditor-Derivative Claims

Quadrant Structured Prods. Co. v. Vertin, No. 6990-VCL, 2015 WL 2062115 (Del. Ch. May 4, 2015)

In this Opinion, Vice Chancellor Laster addressed two questions with respect to a derivative claim asserted by a creditor on behalf of a corporation – namely (1) whether such claims may be maintained only during the time that a corporation is actually insolvent and (2) whether to establish the insolvency of the corporation, such creditor must show that the corporation has “a deficiency of assets below liabilities with no reasonable prospect that the business can be successfully continued in the face thereof.”  Answering both questions in the negative, the Chancery Court held that a creditor will have standing to sue derivatively if it establishes that the corporation was insolvent at the time the derivative suit was filed and that insolvency may be proven under either one of the two traditional insolvency tests – the balance sheet test or the cash flow test. Read More ›

Derivative Standing to Pursue Recharacterization, Equitable Subordination, and Breach of Fiduciary Duty Claims on behalf of Debtors Optim Energy, LLC Denied by Bankruptcy Court

In re Optim Energy, LLC, No. 14-10262 (BLS), 2014 WL 1924908 (Bankr. D.  Del. May 13, 2014)

On May 13, 2014, the Honorable Brendan L. Shannon issued an Opinion denying an unsecured creditor’s request for derivative standing to pursue claims on behalf of debtor Optim Energy, LLC (“Optim Energy”) and its affiliated debtors (collectively, the “Debtors”) for recharacterization, equitable subordination, and breach of fiduciary duties against direct and indirect non-debtor owners, ECJV Holdings, LLC (“ECJV”) and Cascade Investments, L.L.C. (“Cascade”).  Walnut Creek Mining Company (“Walnut Creek”), the Debtors’ largest non-insider general unsecured creditor, alleged that the insiders engaged in a scheme that transformed them from 100% equity holders to senior secured lenders holding claims in excess of $700 million secured by first priority liens on substantially all of the Debtors’ assets. Read More ›

Pro Se Plaintiff's Adversary Complaint Dismissed For Lack of Subject Matter Jurisdiction

Carr v. JP Morgan Chase Bank, N.A. (In re New Century TRS Holdings, Inc.), Adv. No. 13-51058 (KJC), 2014 WL 392848 (Bankr. D. Del. Feb. 3, 2014)

In this Memorandum, Judge Carey dismissed a pro se plaintiff's adversary complaint because the plaintiff lacked standing to pursue certain claims, and the Court lacked subject matter jurisdiction to consider the remaining. Read More ›