Senior Care Centers, LLC and Subsidiaries File Bankruptcy in N.D.T.X.

On December 5, 2018, Senior Care Centers, LLC and 120 subsidiaries (collectively, the “Debtors”) filed for chapter 11 relief in the United States Bankruptcy Court for the Northern District of Texas. The Debtors are one of the largest providers of skilled nursing services in the country, providing care on a daily basis to approximately 9,000 […]

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Third Circuit Enforces Tenant’s Rights After Debtor’s Sale of Real Property and Rejection of Lease

In IDEA Boardwalk, LLC v. Revel Entertainment Group, LLC (In re Revel AC Inc.), Case No. 17-3607, –F.3d–, 2018 WL 6259316 (3rd Cir. Nov. 30, 2018), the Third Circuit Court of Appeals recently enforced a tenant’s right to offset rent under a rejected lease of real property, pursuant to section 365(h) of the Bankruptcy Code […]

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Ninth Circuit BAP Denies Retroactive Approval of Postpetition Financing

Section 364(a) of the Bankruptcy Code allows a debtor to incur unsecured debt, like trade debt, in the ordinary course of business.  Section 364(b) of the Code provides, however, that when a debtor plans to incur unsecured debt, like a loan, outside the ordinary course, the debt must be pre-approved by the bankruptcy court after […]

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Texas Court Holds Third-Party Claims “Related to” Bankruptcy Case

In Lone Star State Bank of West Texas v. Waggoner, et al. (In re Waggoner Cattle, LLC), Adv. P. No. 18-02003 (RLJ) (Bankr. N.D. Tex. Nov. 19, 2018), the United States Bankruptcy Court for the Northern District of Texas reminded us that creditor’s claims against third parties can confer jurisdiction on a bankruptcy court when […]

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Delaware Court Holds Chapter 7 Trustee Can Sell Avoidance Claims

In Claridge Associates, LLC, et al. v. Anthony Schepis (In re Pursuit Capital Management, LLC), Adv. P. No. 16-50083 (LSS) (Bankr. D. Del. Nov. 2, 2018), the Honorable Laurie  Silverstein held that a chapter 7 trustee was authorized to sell the right to pursue fraudulent conveyance claims to third parties, pursuant to section 363 of […]

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Is it Harder to Pierce the Corporate Veil of a Limited Liability Company?

Piercing the corporate veil (PCV) is a remedy often pursued by a creditor of an insolvent entity against the entity’s parent or principal. While the corporate veil generally shields a shareholder from the general obligations of his or her corporation, PCV allows a creditor to look beyond the corporate shield and, in certain instances, hold […]

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