Mid-Atlantic Updates

In In re Woodbridge Group of Companies, LLC, et al., the Delaware Bankruptcy Court ruled that an anti-assignment clause in a promissory note was, in fact, enforceable over UCC anti-assignment rules. Click here to learn more.

In In re Taberna Preferred Funding IV, Ltd., the Bankruptcy Court for the Southern District of New York denied a motion for partial summary judgment, ruling against a group of secured noteholders that had sought to establish their status as unsecured petitioning creditors by partially waiving a security interest held for their benefit by the indenture trustee. Click here to learn more.

Midwest Updates

In FirstMerit Bank, N.A. v. Kloysner Grp., LLC (an action for violations of various sections of the Illinois Uniform Fraudulent Transfer Act), the District Court for the Northern District of Illinois denied the defendants' Motion to Dismiss for lack of subject-matter jurisdiction and failure to state a claim. Click here to learn more.

In a motion for summary judgment, the District Court for the Northern District of Illinois found in Capital One Equip. Fin. Corp. v. Adela Inc. that borrowers and guarantors were in default and liable to the creditor for the unpaid amounts on their loans and guaranties. Click here to learn more.

The Bankruptcy Court for the Northern District of Illinois held in Brandt v. FDIC (In re Equip. Acquisition Res., Inc.) that: (i) the common law and statutory defenses which preclude claims against the FDIC as the receiver for a failed bank based on a fraudulent scheme between a bankruptcy debtor and its affiliate were applicable to the bankruptcy case and (ii) a bankruptcy plan administrator's claims against the FDIC for fraudulent transfers from the bankruptcy debtor to the bank based on the fraudulent scheme were precluded. Click here to learn more.