2019 Shapero Cup Materials
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Benchnotes March 2019
Journal Issue:
Sixth Circuit Enforces a ‘Carveout’ for Professionals after Conversion to Chapter 7
The appeals court barred the secured lenders from renegotiating a carveout when a chapter 11 reorganization failed.
Court:
Chapter 11 Super Priority Claims Retain Exalted Status After Conversion to Chapter 7
Super priority claims are not created under Section 503(b) and therefore don’t take a back seat to chapter 7 administrative claims.
Court:
Wisconsin Judge Slashes Quarterly Fees to the U.S. Trustee Program
Judge Furay interprets ‘disbursements’ not to include the daily sweep of a collection account in a revolving credit.
Disgorgement by Professionals Is Not Required in an Administrative Insolvency
Jevic doesn’t mandate forcing professionals to disgorge interim allowances to achieve a pro rata distribution to administrative claimants in an administrative insolvency.
Chapter 7 Trustee Is Paid in a Case Converted to Chapter 13
Courts split on allowing compensation to a chapter 7 trustee when the case is converted to chapter 13 before distributions were made.
Court: