Delaware Business Bankruptcy Report

Delaware Business Bankruptcy Report

Category Archives: Bar Date

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District Court Denies Plaintiffs’ Counsel’s Appeal, Finds Claimants’ Post Bar Date Ratification of Proofs of Claim to Be Ineffective

Posted in Bar Date, Case Summaries, Claims
The law firm of Speights & Runyan filed thousands of claims on behalf of creditors in the W.R. Grace & Co. bankruptcy. The debtors moved to expunge and disallow some of the claims, contending that Speights & Runyan lacked express authority to file the proofs of claim as of the time that they were filed. The United States Bankruptcy Court for the District of Delaware held that, although a claimant may authorize the filing of a claim after it is filed, if the ratification occurs after the bar date has passed, that ratification is insufficient to make the claim timely filed. Accordingly, because authorization for these claims was not established as of the deadline for filing proofs of claim, the Court expunged and disallowed the claims. The United States District Court for the District of Delaware affirmed… Continue Reading

Court Disallows Claim, Finding That Doctrine of Ratification Did Not Rescue Proofs of Claim Filed Before Bar Date by Counsel, Where Ratification Came After Bar Date

Posted in Bar Date, Case Summaries, Claims, Judge Judith K. Fitzgerald, United States Bankruptcy Court - District of Delaware
In re W.R. Grace & Co., 366 B.R. 302 (Bankr. D. Del. 2007) (Judge Judith K. Fitzgerald) The law firm of Speights & Runyan filed thousands of claims on behalf of creditors in the W.R. Grace & Co. bankruptcy. The debtors moved to expunge and disallow 71 of these claims, contending that Speights & Runyan lacked express … Continue Reading

Court Permits Creditor To File Late Proof Of Claim Because Of Excusable Neglect Where Claim Was Scheduled By Debtor In Different Amount, But Creditor Filed Claim Three Days After Claim Bar Date

Posted in Bar Date, Case Summaries, Claims, Judge Randolph Baxter, United States Bankruptcy Court - District of Delaware
In re Garden Ridge Corp., 348 B.R. 642 (Bankr. D. Del. 2006) (Judge Randolph Baxter) The Debtor Scheduled a Creditor’s Claim in One Amount and the Creditor Filed a Proof of Claim in Another Amount Three Days After the Bar Date. Eighteen Months Later, the Post-Effective Date Committee Rejected the Late Filed Claim. The Court Permitted … Continue Reading