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2021 Stroock Bankruptcy Guide

Issue link: https://mbozikis.ufcontent.com/i/1422521

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12 (ii) subject to (i) above, a proceeding by a trustee, acting as statutory successor to the debtor or creditors, under either Section 541 (property of the estate) or 544(b) (granting the trustee the rights of actual, unsecured creditors under applicable nonbankruptcy law to void transfers) of the Bankruptcy Code arising in or related to a title 11 case, which may be brought in the district court for the district where the Federal or State court sits in which venue would have been proper under applicable nonbankruptcy law; (iii) a proceeding by the trustee arising under title 11 or arising in or related to a case under title 11 based on a claim arising after the commencement of the bankruptcy case and relating to the operation of the debtor's business, which must be brought in the district court for the district where a Federal or State court sits in which venue would have been proper under applicable non-bankruptcy law; and (iv) a proceeding against the representative of the bankruptcy estate arising under title 11 or arising in or related to a case under title 11 based on a claim arising after the commencement of the bankruptcy case and relating to the operation of the debtor's business, which may be brought in either (a) the district court for the district where a Federal or State court sits in which venue would have been proper under applicable non-bankruptcy law or (b) the district court in which the bankruptcy case is pending. Notwithstanding literal compliance with Section 1408 or 1409, a court may transfer a case or proceeding under title 11 to another district, "in the interest of justice or for the convenience of the parties." 28 U.S.C. ยง 1412; see, e.g., In re Caesars Entm't Operating Co., Inc., 2015 WL 495259 (Bankr. D. Del. 2015); In re Patriot Coal Corp., 482 B.R. 718 (Bankr. S.D.N.Y. 2012). According to the Second Circuit:

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