Georgia Bankruptcy Blog

Georgia Bankruptcy Blog

Tag Archives: Chapter 11

The Trap of Merchant Cash Advances and Financing

By Scott Riddle Posted in Consumer Bankruptcy Guide, Miscellaneous Cases, News and Comments, Small Business Bankruptcy
If you have a business, you have no doubt received advertisements for “merchant cash advances,” “merchant loans” or “merchant financing,” whether or not those specific terms are used.  If in doubt, just do a search for those terms and you will get a couple pages of sponsored ads (but be warned the big brother of… Continue Reading

In a Case of First Impression, 11th Circuit Rules “New Value” Can Be Both Preference Defense and Administrative Claim

By Scott Riddle Posted in Eleventh Circuit Cases, Northern District Cases
In Auriga Polymers, Inc. v. PMCM2, LLC, as Liquidating Trustee, No. 20-14647, 2022 WL 2800195 (11th Cir. July 17, 2022) (click here for .pdf) the creditor, Auriga, received transfers of more than $2.2 million in the 90 days before the Debtor, Beaulieu Group, LLC, filed its Bankruptcy case on July 16, 2017.  During the 90… Continue Reading

Elite Bankruptcy Consulting Firms Battle It Out With Fraud and RICO Claims Related to Bankruptcy Disclosures and Lost Engagements

By Scott Riddle Posted in Corporate & Fiduciary Litigation, Miscellaneous Cases
In Jay Alix, as assignee of AlixPartners, LLP v. McKinsey & Co., Inc., 2022 WL 163800 (2nd Cir., January 19, 2022) (click here for .pdf), two major competitors in the niche market of Bankruptcy advising to estates with a billion dollars or more of assets were in court against each other over lucrative consulting assignments.… Continue Reading

Eleventh Circuit Allows Individual Chapter 11 Debtor To Argue Appointment Of Trustee Violated Thirteenth Amendment

By Scott Riddle Posted in Eleventh Circuit Cases
In In re Breland, __ F.3d __ , 2021 WL 910657 (11th Cir., March 10, 2021) (click here for .pdf) the individual Debtor filed a voluntary Chapter 11 petition.  After it was determined that he was transferring assets and defrauding his creditors a Chapter 11 Trustee was appointed. [Debtor] protested that the trustee’s appointment violated… Continue Reading

Why Are Large Chapter 11 Cases Dismissed, Leaving Small Creditors Out of Luck? Judge Bonapfel Explains.

By Scott Riddle Posted in News and Comments, Northern District Cases
“It has been said that, in many bankruptcy cases, there are no good alternatives, only less bad ones. As financial realities in this case took hold, it became clear that, for most creditors, including the objectors, there were not even “less bad” alternatives. The Court is saddened that it can offer only an explanation for… Continue Reading

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

By Scott Riddle 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

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

By 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

Recent Chapter 11 Filings In Northern District of Georgia

By Posted in Northern District Cases
Recent cases filed in the Northern District over last two weeks — 08-40915-mgd Northstar Vinyl Products, LLC Filed: 03/28/2008 Entered: 03/28/2008 08-65697-jb Heritage Point Apartments Inc. Filed: 03/28/2008 Entered: 03/28/2008 08-10870-whd Larry H. Huffman Filed: 03/31/2008 Entered: 03/31/2008 08-40957-mgd Aldona Maria Urbantas-Stewart Filed: 03/31/2008 Entered: 03/31/2008 08-65876-mhm Mathis Partners, LLC Filed: 03/31/2008 Entered: 03/31/2008 08-66074-mhm GreenTree Estates, LLC Filed: 03/31/2008 Entered: 03/31/2008 08-66110-mhm Children’s Dental Care Center,… Continue Reading