Bankruptcy

  • July 1, 2016

    7 Habits Of Highly Effective Bankruptcy Attorneys

    Bankruptcy may be one of the most challenging areas of law. You have to deal with a tapestry of quickly evolving rules and laws that intersect multiple practice areas, and often do it with a running clock to ensure a business doesn’t go belly-up first. Here, Law360 looks at the seven habits experts say will help a bankruptcy attorney’s career soar.

  • July 1, 2016

    Davis Polk Seeks $7.5M In Fees For Repping Arch Coal

    Davis Polk & Wardwell LLP is seeking more than $7.5 million in fees for representing Arch Coal in the first five months of the coal company’s massive Chapter 11 restructuring case, according to papers filed Thursday in Missouri federal court.

  • July 1, 2016

    Bankruptcy Watchdog Again Takes Aim At Sealed DIP Terms

    The federal bankruptcy watchdog on Friday again challenged a debtor's request to file post-petition financing information under seal, objecting to auto parts maker UCI International Inc.'s bid to shield a fee letter from public view days after the court rejected a push to unseal similar data in another case.

  • July 1, 2016

    SunEdison Looks To Gain $5M From Solar Farm Equity Sale

    Bankrupt renewable energy firm SunEdison Inc. asked for court permission Friday to sell its equity interests in a joint venture to develop a 2,400-acre solar farm in California’s Imperial Valley, aiming to pocket $5 million in net proceeds that will go to satisfy a portion of its $300 million debtor-in-possession financing.

  • July 1, 2016

    Alpha Inks $7.5M Deal To Resolve Enviro Ch. 11 Objections

    Alpha Natural Resources has agreed to pay up to $7.5 million to fund land and stream restoration projects as part of a settlement with environmental protection groups that have agreed in exchange to drop objections to the coal mine operator's reorganization plan, according to documents filed Thursday in West Virginia.

  • July 1, 2016

    Diamondhead Wants Damages After Involuntary Ch. 7 Tossed

    Diamondhead Casino Corporation filed a motion on Thursday seeking unspecified punitive damages from a group of creditors that filed an involuntary Chapter 7 petition last year against the company, saying the casino development company is entitled to the award because a Delaware bankruptcy judge said the creditors had filed in bad faith.

  • July 1, 2016

    Wyly Can't Shield $250M In Offshore Payments From SEC

    Bankrupt business tycoon Sam Wyly cannot shield $249 million in ill-gotten annuities from the U.S. Securities and Exchange Commission and other creditors, a Texas bankruptcy court has ruled, finding the payments resulted from securities fraud that cannot be exempted under Texas law.

  • July 1, 2016

    KaloBios Emerges From Ch. 11 With Chagas Drug Rights

    Drug development company KaloBios Pharmaceuticals Inc. emerged from Chapter 11 Thursday using an $11 million exit facility to buy the rights to develop a drug used to treat Chagas disease in humans after almost seven months of turbulent litigation following the arrest of former CEO Martin Shkreli on charges of securities fraud.

  • July 1, 2016

    Bankrupt Sports Authority Unveils New Vendor Settlement

    Sports Authority Holdings Inc. on Thursday unveiled another settlement with consignment vendors over how to treat their proceeds, after pulling out of an earlier deal to resolve the issue, and the new proposed resolution has crucial backing from the bankrupt retailer’s term lenders, which opposed the prior agreement.

  • July 1, 2016

    UK Retailer Fined $50K In Amazon Price-Fixing Row

    A bankrupt U.K.-based retailer on Thursday agreed to plead guilty in California federal court to violating the Sherman Antitrust Act and to pay a $50,000 fine for plotting to fix the price of posters sold on Amazon Marketplace.

  • July 1, 2016

    Insurer Says Policy Doesn’t Cover Insured Vs. Insured Suit

    Philadelphia Indemnity Insurance Co. told a Rhode Island federal court Thursday that it doesn't have to cover litigation accusing former executives for a defunct charity of mishandling funds, saying the nonprofit's receiver ignores the terms of an insurance policy in arguing to the contrary.

  • July 1, 2016

    Puerto Rico Hits $1B Debt Default After Obama Signs PROMESA

    Puerto Rico on Friday said it would default on about $1 billion of debt payments due that day, after President Barack Obama one day earlier signed legislation forming a new oversight authority to manage the territory’s debt.

  • June 30, 2016

    Fla. Heart Doc To Pay $2M To Settle FCA Suit

    A Florida heart surgeon has agreed to pay $2 million and release any claims to $5.3 million in suspended Medicare funds to resolve a False Claims Act suit alleging he ordered unnecessary tests on patients in exchange for Medicare payments, the U.S. Department of Justice said Thursday.

  • June 30, 2016

    Dick's Wins Ch. 11 Auction For Sports Authority IP

    Dick’s Sporting Goods Inc. submitted the winning bid for Sports Authority Inc.'s intellectual property and more than two dozen of the bankrupt sports retailer’s leases, according to court papers filed Thursday in Delaware.

  • June 30, 2016

    Caesars Seeks To Pay Down $300M In Ch. 11 Bank Claims

    Caesars Entertainment Operating Co. Inc. asked for permission from an Illinois bankruptcy judge Thursday to pay $300 million to bank lenders that provided four prepetition term loans totaling $5.35 billion.

  • June 30, 2016

    Puerto Rico Utility To Avoid Default With $415M Payment

    Puerto Rico’s heavily indebted electric utility PREPA said Thursday that it intends to make a $415 million payment to satisfy principal and interest that comes due on Friday under its power revenue bonds as part of an agreement with a majority of its creditors.

  • June 30, 2016

    DLA Piper Strikes Merger Deal With Swedish Firm Gronberg

    DLA Piper LLP is set to merge with Swedish corporate law outfit Gronberg Advokatbyra, the firms announced Thursday, in a move that will further expand the global firm’s Scandinavian footprint following its tie-up with Finnish firm Peltonen LMR earlier this year.

  • June 30, 2016

    Triangle USA Hits Ch. 11 To Swap $381M In Debt For Equity

    Shale driller Triangle USA Petroleum Corp. sought bankruptcy court protection early Thursday morning with five affiliates, listing $689 million in liabilities and citing the prolonged downturn in energy commodity prices for its liquidity issues and need for a debt-for-equity swap.

  • June 30, 2016

    SEC Loses Fraud Case Against TMST Mortgage Execs

    Two executives at mortgage lender TMST Inc. defeated U.S. Securities and Exchange Commission claims that they hid $428 million in losses when a New Mexico federal jury handed down a partial verdict in their favor Wednesday.

  • June 30, 2016

    Gawker's Union Contract Up In Air, Ziff Davis Says

    Web publisher Ziff Davis, currently the leading bidder to acquire Gawker Media's consortium of blogs at a planned bankruptcy auction, said Thursday that it has not yet determined whether it would assume a collective bargaining agreement covering Gawker's editorial employees.

Expert Analysis

  • When Successor Liability And Bankruptcy Principles Collide

    Michael H. Reed

    The efficacy of a bankruptcy sale to cut off pre-existing debts and claims will depend, in part, on the adequacy of the notice of the sale given to interested parties. Special problems are presented by so-called “future claims” and certain types of environmental liabilities, says Michael Reed of Pepper Hamilton LLP.

  • RFP Lessons: A General Counsel's List Of Law Firm Mistakes

    Dave Sampsell

    All too often, law firm financial proposals are too complicated, making them contingent on a host of different assumptions. This makes determining the value of the proposal extremely difficult, and the odds increase dramatically that the proposal will be disregarded, says Dave Sampsell, general counsel of Digi International Inc.

  • NY Should Unify Standards For Atty Fees Against State Agency

    Matthew T. McLaughlin

    Two bills introduced in the recently ended New York legislative session, if adopted into law, will provide government entities and Freedom of Information Law practitioners with the mooring of predictable and consistent outcomes in FOIL proceedings by changing the standard for determining attorneys’ fee awards, say Matthew McLaughlin and Benjamin Argyle of Venable LLP.

  • Puerto Rico And The Importance Of Legislative History

    Carolyn Walsh

    The U.S. Supreme Court’s enunciation of the clear limits of Puerto Rico’s power and its ability to restructure municipal debt made the bipartisan negotiation and passage of the Puerto Rico Oversight, Management and Economic Stability Act crucial. It also highlighted that the process and manner in which the legislation was passed will be an essential component of PROMESA for posterity, say attorneys with Steptoe & Johnson LLP, inclu... (continued)

  • REBUTTAL: Lenders Won't Lose Mortgage Priority In NJ

    Matthew H. Lewis

    A recent Law360 guest article suggested that if the New Jersey Supreme Court upholds the lower court's decision in Rosenthal & Rosenthal v. Benun it could have a chilling effect on certain types of loans that provide for future advances — but such consequences are unlikely, says Matthew Lewis at Riker Danzig Scherer Hyland & Perretti LLP.

  • How To Manage Your Law School Debt After Graduation

    Andrew Josuweit-headshot.jpg

    Student loan debt can feel overwhelming to new lawyers, especially when just getting started post graduation. Andrew Josuweit, co-founder and CEO of Student Loan Hero Inc., reviews the loan repayment plans available and discusses the best path forward for recent grads shouldering law school debt.

  • Bankruptcy-Remote Structures At Risk

    Luc A. Despins

    The Delaware bankruptcy court's recent decision in Intervention Energy is an important reminder that bankruptcy-remote does not necessarily mean bankruptcy-proof. Accordingly, lenders should always consider additional safeguards, including so-called “bad boy” guaranties, say Luc Despins and Alexander Bongartz of Paul Hastings LLP.

  • Madden High Court Denial — Much Ado About Not Much

    Brian S. Korn

    The U.S. Supreme Court’s refusal to hear Madden v. Midland Funding will cause nonbank assignees to avoid purchasing certain loans made in the three states affected by the Second Circuit. But by denying certiorari, the Supreme Court has localized the damage caused, say Brian Korn and Richard Gottlieb of Manatt Phelps & Phillips LLP.

  • The Cloud And Ethical Considerations For Lawyers

    Bradley S. Shear

    Despite regular news stories detailing the need to update our digital privacy laws and increase our cybersecurity protections, law firms and in-house legal departments should feel confident that utilizing cloud providers with strong privacy and security protections will not breach their ethical obligation to clients, says Bradley Shear of the Law Office of Bradley S. Shear LLC.

  • 7th Circ. Provides Road Map For Preference Defendants

    J. Mark Fisher

    The Seventh Circuit's recent decision in Jason’s Foods expands the “ordinary course" defense of creditors sued for the avoidance of preferential payments and offers some interesting tactical lessons to preference defendants, says Mark Fisher of Schiff Hardin LLP.