In this Issue:

• Are Breakup Fees at Risk?
• Credit Bidding Rights Limited, Capped by Debt Purchase Amount
• Court Upholds Creditor’s Security Interest Despite Post-Petition Lapse of Financing Statement
• Trustee Can Use Lien-Creditor Status and Avoidance Power Defensively, Even After Limitation Period
• Denying Summary Judgment, Court Holds that ORRI May Face Recharacterization as Debt
• Preference Decision May Expand Circumstances in Which Trustees Seek Recovery from Senior and Junior Lienholders
• Liens May Attach Where Parties Clearly Intended, Even Where Deed of Trust is Deficient
• Separate Judgments against Husband’s and Wife’s Guaranties of the Same Loan Cannot Be Consolidated
• Individual Committee Members Must Make a ‘Substantial Contribution’ to Receive Payment of Attorney’s Fees
• Payment of Claimant’s Fees Under Section 506(c) Only Made in Narrow Circumstances
• A New Value Chapter 11 Plan Requires a Genuine Market Test to Avoid Absolute Priority Rule Violation
• Continuing the Split, Court Rules Debtor Has No Possessory Interest in Web Address and Phone Number
• Chapter 11 Debtor May Not Use or Allocate Rents to Bifurcate Creditor’s Claim
• Court Analyzes Whether Hotel Revenues are an Interest in Real or Personal Property
• Court Upholds Insider Releases Because of Substantial Contributions of New Value
• Court Denies Confirmation Because of Failure to Obtain Informed Consent of Third-Party Releases
• Settlement Payment Constitutes Antecedent Debt in Preference Action
• Counsel’s Corner: News from Reed Smith

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