Quantum Foods: Committee Files Preference Actions

Introduction On October 28, 2014, The Official Committee of Unsecured Creditors of Q v. AB Foods LLC (the “Committee”), the committee in the Quantum Foods, LLC bankruptcy, began filing complaints to recover what it contends are avoidable preferences.  The Committee filed the preference actions in the Delaware Bankruptcy Court and argue that the transfers, or… Read More

Limitations On Credit Bidding Under Fisker And Its Progeny: A Trend Or An Aberration?

Section 363(k) of the Bankruptcy Code (the “Code”) provides that a secured creditor may “credit bid,” or bid at the sale of its collateral and then offset the purchase price at closing by the value of the outstanding claim secured by the collateral being purchased. The right of a secured creditor to credit bid, however,… Read More

Orchestrated Involuntary Case Not Dismissed On Bad-Faith Grounds

In In re Houston Regional Sports Network LP,1 Hon. Marvin Isgur of the U.S. Bankruptcy Court for the Southern District of Texas held that an involuntary case commenced to circumvent a contractual clause requiring unanimous director consent to commence a voluntary case (the “unanimous-consent clause”) was not subject to dismissal on bad-faith grounds pursuant to… Read More

Crumbs Court Deals Protection For Trademark Licensees In Bankruptcy

The Bankruptcy Code definition of “intellectual property” does not explicitly include “trademarks.”1 This has led to trademark licensees losing their rights to use the trademark upon rejection of the license in bankruptcy. A recent decision in the Crumbs2 bankruptcy case in New Jersey addressed this and related issues, finding that trademark licenses can be afforded… Read More

Zalman Files for Bankruptcy for Major Financial Fraud by Parent Company

Popular PC cooling products maker Zalman filed for bankruptcy, in midst of a huge controversy by its parent company Moneual. Executives of Moneual cooked-up sales and export figures from Zalman to markets like the United States, in a bid to pick up large fraudulent loans for the company, which it could never pay off, pushing… Read More

« Newer Entries