On August 29, 2025, the Delaware Bankruptcy Court issued a dismissal order in In re Bedmar, LLC that stands as one of the clearest applications of the “manufactured bankruptcy” doctrine to emerge from the post-Third Circuit landscape. Judge J. Kate Stickles dismissed the Chapter 11 case under Section 1112(b) for lack of good faith, finding
Opinions
Delaware Bankruptcy Court Grants Late-Filed Abuse Claim in Boy Scouts Bankruptcy Case, Finding Excusable Neglect Despite Substantial Delay
By Carl D. Neff on
The letter decision, issued by Judge Laurie Selber Silverstein of the United States Bankruptcy Court for the District of Delaware on December 16, 2024, addresses a Motion to Allow Late-Filed Proof of Claim in the Boy Scouts of America bankruptcy case. The movant, identified only as “J.C.,” sought permission to file a late claim…
Third Circuit Joins Fifth and Ninth on Solvent-Debtor Exception: In re Hertz Corp.
By Carl D. Neff on
On September 10, 2024, the United States Court of Appeals for the Third Circuit issued a significant decision in In re The Hertz Corporation, No. 23-1169, addressing make-whole premiums and post-petition interest in the Chapter 11 reorganization of a solvent debtor. Writing for the panel, Judge Ambro held that (1) make-whole premiums are…
Plan Confirmation Is Final: Delaware Bankruptcy Court Rejects Virgin Orbit Equity Holders’ Revocation Motion
By Carl D. Neff on
In a decision emphasizing the finality of confirmed Chapter 11 plans, the United States Bankruptcy Court for the District of Delaware denied a motion by Virgin Orbit equity holders to revoke the plan confirmation order in Virgin Orbit, L.L.C., 659 B.R. 36 (Bankr. D. Del. 2024). The case presents an instructive lens on…
Delaware Bankruptcy Court Holds SBRA Due Diligence Is an Element of a Preference Claim — But Rule 9(c) Governs Pleading
By Carl D. Neff on
In Pinktoe Liquidation Trust v. Dellal (In re Pinktoe Tarantula Limited), Adv. Pro. No. 20-50597 (Bankr. D. Del. Apr. 14, 2023), Judge Laurie Selber Silverstein addressed a question that has divided bankruptcy courts since the Small Business Reorganization Act of 2019 (“SBRA”) amended Section 547(b): is the new “reasonable due diligence” requirement an element…
Delaware Bankruptcy Court Finds that Intellectual Property Was Not Conveyed to Purchaser of Debtors’ Assets Under Plan
By Carl D. Neff on
In the recent decision of Automotive Coalition for Traffic Safety, Inc. v. Joyson Safety Systems Acquisition, LLC, et al., (In re: TK Holdings, Inc., et al.), (Bankr. D. Del. June 18, 2020), the Delaware Bankruptcy Court adjudicated ownership of certain patent rights (the “Patent Assets”) between Automotive Coalition for Traffic Safety (“ACTS”) and TK Holdings…