BANKRUPTCY CORNER
BANKRUPTCY CORNER
Judge Grossman and Judge Russin Provide Guidance in Recent Opinions
JASON S. RIGOLI
In recent months Judges Grossman and Russin issues important decisions on various issues.
Notice of Claims Bar Date is the“ Notice” in Fed. R. Bankr. P. 3002( c)( 7)
On April 10, 2025, Judge Grossman issued an opinion regarding the“ notice” set forth in Fed. R. Bankr. P. 3002( c)( 7), relating to when a court may extend the time to file a proof of claim. In re Aguilar, 668 B. R. 512( Bankr. S. D. Fla. 2025). Fed. R. Bankr. P. 3002( c)( 7) reads:
On a creditor’ s motion filed before or after the time to file a proof of claim has expired, the court may extend the time to file by no more than 60 days from the date of its order. The motion may be granted if the court finds that the notice was insufficient to give the creditor a reasonable time to file.( Emphasis added).
Judge Grossman adopted In re JC Farms, LLC, Case No. 23-10278-357, 2024 Bankr. LEXIS 1581, 2024 WL 3352120( E. D. Mo. Jul, 9, 2024), which engaged in a thorough analysis of the adoption and amendments to the rule, including the Advisory Committee note, finding that the“ notice” referenced in Fed. R. Bankr. P. 3002( c)( 7) refers to notice of the claims bar date rather than the notice of the bankruptcy case.
Consent to Bypass Distribution Priorities Does Not Violate Jevic
On May 27, 2025, Judge Russin issued an opinion approving DIP financing and approving a sale with an administratively insolvent estate where the administrative creditors agree“ to a process that may leave them underpaid, so long as they do so voluntarily, with eyes open and in the absence of better alternatives.” In re Silver Airways LLC, Case No. 24-23623-PDR, 2025 Bankr. LEXIS 1216 at * 18, 2025 WL 1436258( Bankr. S. D. Fla. May 27, 2025).
Following the language of 11 U. S. C. § 1129( a)( 9)( A)( no plan can be confirmed unless administrative claims are paid in full, " unless the holders of a particular claim have agreed to a different treatment ") and the holding in Czyzewski v. Jevic Holding
Corp., 580 U. S. 451( 2017)( bankruptcy court may not authorize distributions that bypass the Code ' s priority scheme absent consent of those affected), Judge Russin concluded that the administrative creditors having agreed to the treatment, the DIP Financing and Sale could be approved. 2025 Bankr. LEXIS 1216 at * 24- 25.
This article was submitted by Jason S. Rigoli, Esq., Furr and Cohen, P. A., 2255 Glades Road, Suite 419A, Boca Raton, FL 33431, jrigoli @ furrcohen. com
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