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Category Archives: Small Business Bankruptcy

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Lender’s Security Interest In Cash Collateral Is Separate & Distinct From Security Interest In Land, Entitling Lender To Separate Adequate Protection For Cash Collateral

Posted in Middle District Cases, Small Business Bankruptcy
The issue before the District Court in Putnall v. SunTrust Bank, No. 5:12-cv-481, 2013 U.S. Dist. LEXIS 44187 (M.D. Ga. March 28, 2013) was whether the lender’s security interest in rents (the “cash collateral”) was separate and apart from, and in addition to, its security interest in the rental property owned by the Debtor.  The … Continue Reading

Southern District of Georgia: Small Business Chapter 11 Plan Must Be Filed Within 300 Days; Deadline Cannot Be Extended Pursuant To Section 105.

Posted in Small Business Bankruptcy, Southern District Cases
In re Randi’s, Inc., Ch. 11 Case No. 11-10431, Normal 0 false false false EN-US X-NONE X-NONE MicrosoftInternetExplorer4 /* Style Definitions */ table.MsoNormalTable {mso-style-name:"Table Normal"; mso-tstyle-rowband-size:0; mso-tstyle-colband-size:0; mso-style-noshow:yes; mso-style-priority:99; mso-style-qformat:yes; mso-style-parent:""; mso-padding-alt:0in 5.4pt 0in 5.4pt; mso-para-margin-top:0in; mso-para-margin-right:0in; mso-para-margin-bottom:10.0pt; mso-para-margin-left:0in; line-height:115%; mso-pagination:widow-orphan; font-size:11.0pt; font-family:"Calibri","sans-serif"; mso-ascii-font-family:Calibri; mso-ascii-theme-font:minor-latin; mso-hansi-font-family:Calibri; mso-hansi-theme-font:minor-latin; mso-bidi-font-family:"Times New Roman"; mso-bidi-theme-font:minor-bidi;} 2012 Bankr. LEXIS 2920 … Continue Reading

Cagle’s Farms Files Chapter 11 Bankruptcy Petition In Georgia; Reclamation Claims Filed.

Posted in Northern District Cases, Small Business Bankruptcy
Cagle’s Farms filed Chapter 11 Petitions in the Northern District of Georgia on October 19, 2011.  The related cases are In re Cagle’s, Inc. (dba Integrated Poultry Company), Ch. 11 Case No. 11-80202 and In re Cagle’s Farms, Inc., Ch. 11 Case No. 11-80203.  The cases are jointly administered under Cagle’s Inc.  Click here for the skeletal … Continue Reading

Can Creditors File A Derivative Action Against Limited Liability Company?

Posted in Corporate & Fiduciary Litigation, Georgia State Cases, Miscellaneous Cases, News and Comments, Small Business Bankruptcy
In CML V, LLC v. Bax, No. 735, 2010 (Del. Supr. Sept. 2, 2011) (click here for .pdf of opinion), the Delaware Supreme Court addressed the questions of whether a creditor can file a derivative action against a limited liability company.   Plaintiff CML asserted the following derivative claims against the present and former members of … Continue Reading

Assignments of Trademarks in Bankruptcy – Judge Posner and 7th Circuit Provide Answer

Posted in Corporate & Fiduciary Litigation, Miscellaneous Cases, News and Comments, Small Business Bankruptcy
The Seventh Circuit Court of Appeals has issued the first published Circuit Court opinion on the question of whether trademarks are assignable in a Bankruptcy case.  The opinion, authored by Judge Posner, is in the case of In re XMH Corp., Nos. 10-2596, 10-2597, 10-2598, 10-2599,  2011 U.S. App. LEXIS 15372 (7th Cir. July 26, 2011) (click … Continue Reading

Individual Liability For Unpaid Federal Withholding Taxes

Posted in Miscellaneous Cases, News and Comments, Small Business Bankruptcy
It is not uncommon for financially distressed businesses to get behind on payroll taxes, especially when the company does not have a payroll service that handles the payment of all taxes and automatically deducts the full amount from the company’s bank accounts.  Chapter 11 cases often have significant unpaid payroll taxes scheduled as a priority … Continue Reading