Bankrupt wireless firm LightSquared Inc. on Tuesday won the green light to proceed with most of its suit against Dish Network Corp. and its chairman Charlie Ergen, whom it is accusing of secretly buying $1 billion in LightSquared's debt in a tactical ploy for its valuable spectrum assets.
Unsecured creditors of Overseas Shipholding Group Inc. urged a Delaware bankruptcy judge to limit a proposed extension of the Chapter 11 exclusivity period to no more than two months, saying Tuesday they intend to file their own plan if the oil tanker giant hasn't submitted one by then.
Fisker Automotive Holdings Inc. won approval for its disclosure statement Tuesday, after unsecured creditors assured a Delaware bankruptcy judge they were on board with the shuttered car maker's high-speed agenda to wrap up a sale and Chapter 11 plan just after New Year's.
The Federal Deposit Insurance Corp. on Tuesday readied for publication a strategy for taking apart a failed global financial institution as required under the Dodd-Frank Act, saying its plan would hold shareholders, debt holders and "culpable management" accountable for the failure of the firm.
Comcast Corp. told a Texas bankruptcy judge Monday that a fraud suit filed by the owner of the Houston Astros is threatening efforts to revive a co-owned regional sports network and that the team should be forced to present a viable plan for salvaging the network.
The Second Circuit on Tuesday partially revived a class action claiming the parent of Steve & Barry's should be liable for mass layoffs that preceded the retail chain's bankruptcy, finding former employees could pursue claims against the retailer’s nonbankrupt parent but not its private equity investors.
A federal bankruptcy trustee on Friday asked a New Jersey judge not to approve up to $2.1 million in bonuses for the executives of an Atlantic City casino as they try to secure a buyer while working through the casino’s Chapter 11 restructuring.
The Delaware Supreme Court's recent ruling that there is generally no time limit on third-party claims against dissolved corporations will put insurers on the hook for more asbestos lawsuits and other torts related to diseases with long latency periods.
A New York federal judge on Friday held that the trustee liquidating Bernard Madoff’s investment firm’s estate may only assert certain claims against feeder funds on behalf of the firm’s customers if the claims are validly assigned to him.
Former executives of bankrupt airline Gulfstream International on Friday entered a proposed settlement with the liquidating trustee to receive a $1.9 million payment on their D&O insurance policy and submit it to the trustee’s fund to avoid prolonged litigation alleging they breached their duty to the company.
A New Jersey bankruptcy judge last week dealt a blow to Prime Healthcare Services Inc., upholding the sale of a bankrupt hospital and dismissing Prime’s lawsuit against the purchaser, which Prime said conspired to box the company out of the New Jersey hospital market.
Vedder Price PC bolstered its growing San Francisco practice with the addition of a former Seyfarth Shaw LLP partner as a shareholder in its bankruptcy and creditors’ rights practice, the firm announced Friday.
The heads of an American Bankruptcy Institute commission said Monday that they hope to present a report with recommendations to reform Chapter 11 by this time next year, saying secured lender rights is one of the topics they will likely address.
Canadian energy firm Lone Pine Resources Inc. asked a Delaware bankruptcy judge Monday to approve up to $40 million in hedging agreements, a prerequisite for the Calgary-based company to finalize a new $130 million loan.
Miami hotel and condominium development One Bal Harbour inched closer to exiting Chapter 11 protection Monday when a Florida bankruptcy judge signed off on a $13.4 million sale of the building's common areas to the homeowners' association.
Petroflow Energy Corp., whose predecessor firm went bankrupt in 2010 amid a dispute over an Oklahoma gas drilling project with Equal Energy Ltd., will buy its former business partner for approximately $230 million, Equal said Monday.
American Airlines Inc. parent AMR Corp. and US Airways Group Inc. on Monday consummated their much buzzed-about merger, two years after AMR entered bankruptcy and about four months after the federal government threatened to derail the massive tie-up over antitrust concerns.
Unsecured creditors of bankrupt holding company North Texas Bancshares Inc. objected Friday to the company's proposed $7.4 million sale of its interests in Dallas-based Park Cities Bank, saying they lack key data needed to evaluate the deal.
A New York federal judge on Friday affirmed a bankruptcy judge’s decision to allow a merger between American Airlines and U.S. Airways to move forward, denying a group of customers their bid to stop the deal before it goes through on Monday, according to news reports.
Irish Bank Resolution Corp. Ltd., formerly known as Anglo Irish Bank, asked a Delaware bankruptcy judge on Thursday to reject a motion by borrowers seeking to impose conditions on the sale of its U.S. assets, saying the conditions would prevent IBRC from maximizing the assets' value.
In light of the proposed e-discovery amendments to the Federal Rules of Civil Procedure, businesses need to set themselves up to efficiently respond to discovery and requests for information from their counsel by implementing and following document-control policies as part of normal business practices. The failure to do so will eventually consume vast amounts of employee time, say Steven Cvitanovic and Colin Murphy of Haight Brown & Bonesteel LLP.
There is very little that unsecured creditors can do post-petition to increase recoveries on their prepetition claims. However, where an unsecured creditor continues to provide unique services that may not be readily available from another provider, the creditor might have leverage to insist on getting paid for its prepetition claim, says Steven Wilamowsky of Bingham McCutchen LLP.
In re Flugence in the Fifth Circuit is important because of its implications for other instances in which litigation is commenced for the purpose of making creditors whole, but which may nonetheless produce recoveries in excess of the amount necessary to do so. Courts outside the Fifth Circuit are not in clear agreement, says Steven Wilamowsky of Bingham McCutchen LLP.
In light of the Third Circuit’s recent ruling in In re KB Toys, both buyers and sellers of bankruptcy claims should investigate a creditor’s preference exposure by seeking information from the creditor and by reviewing a debtor’s statement of financial affairs, say attorneys with Haynes and Boone LLP.
Following the financial crisis of 2008, regulations were put in place to enact transparency and protect individual investors in complex financial markets. Although this has left many to believe that financial instruments have become more transparent and that there will likely be less securities litigation going forward, the reality is likely to be more complex than that, says Ilan Guedj of ARPC.
The U.S. Supreme Court once famously warned against a “literal approach” to the application of the Sherman Act. Literalism, according to the court, is “overly simplistic and often overbroad.” And we learn again in Gulf States Reorganization Group v. Nucor Corp. that a rival’s “lousy” intent alone does not violate the act, says Alan Kusinitz of Proskauer Rose LLP.
Where both intellectual property and a third-party license to use the IP are being sold together to a single buyer, the sale will generally be allowed. However, practitioners should be aware of potential objections from nondebtor licensees in situations where the debtor/licensor serves a role beyond that of mere recipient of periodic royalties, says Neil Herman of Morgan Lewis & Bockius LLP.
A new avenue of recovery has just been opened to Madoff victims. The U.S. Attorney for the Southern District of New York recently announced that the Madoff Victim Fund would begin accepting claims. Those who lost money invested with Madoff — indirectly or directly — should be aware of several aspects of the MVF so they can maximize their recovery, say James Masella and Jeremy Weinberg of Patterson Belknap Webb & Tyler LLP.
When a franchisee files for bankruptcy, a franchisor naturally has concerns over how the process will affect the parties’ relationship. Accordingly, a franchisor must timely object to a debtor’s motion to assume and assign its franchise or that right may be waived, says Valerie Morrison of Wiley Rein LLP.
Mandated law student pro bono programs have not worked in championing the causes of social justice for those unable to afford counsel. States would be far better off using their resources to insist on a legislative solution to a very troubling and persistent deficiency in the allocation of legal resources, says Fred Isquith of Wolf Haldenstein Adler Freeman & Herz LLP.