HHR Bankruptcy Report

Category Archives: Fourth Circuit

Subscribe to Fourth Circuit RSS Feed

The Fourth Circuit Weighs In on Recharacterization of Debt as Equity

Posted in Claims Subordination, Fourth Circuit
The Bankruptcy Code contains specific provisions that permit the subordination or disallowance of claims of insiders or others that may not, at equity, be entitled to the same status as a regular prepetition claim holder. For example, such claims may be equitably subordinated under section 510(c) or disallowed under certain subsections of section 502. In… Continue Reading

The Reach of Bankruptcy Courts

Posted in Fourth Circuit, SCOTUS, Stern v. Marshall
In the beginning of the opinion he wrote for Stern v. Marshall, Chief Justice Roberts referenced Charles Dickens’ Bleak House, in which Dickens gives a grim description of a lawsuit litigated in a foggy courtroom.[1] In resolving the tumultuous Stern dispute, the Supreme Court created a new fogginess in bankruptcy courtrooms as to the exact… Continue Reading

Fourth Circuit Affirms Bank’s Good Faith Defense to Fraudulent Transfer Claim

Posted in Fourth Circuit, Fraudulent Transfer, Section 548
The recipient of funds that a trustee seeks to recover by means of a fraudulent transfer claim may avoid liability by establishing that it took “for value and in good faith,” under section 548(c) of the Bankruptcy Code.  The Bankruptcy Code does not define “good faith,” and case law does not provide a clear precedent… Continue Reading

Glass Half Full for U.S. Creditors in Jaffe v. Samsung Electronics Co.: Fourth Circuit Rules In Favor of U.S. Creditors in Chapter 15 Jurisdictional Dispute

Posted in Chapter 15, Fourth Circuit
On December 3, 2013, the Court of Appeals for the Fourth Circuit upheld, in  Jaffe v. Samsung Electronics Co., the power, and the duty, of a United States Bankruptcy Court to condition the grant of Bankruptcy Code section 1521(a)(5) relief to a foreign insolvency administrator on conditions sufficient to protect the interests of all interested… Continue Reading