Bankruptcy

  • July 21, 2014

    Argentina Appeals Foreign Bond Payment Ban Order

    The government of Argentina called on the Second Circuit to lift a New York federal judge’s ban on the nation’s payments to so-called exchange bondholders, making good on an argument it made in a legal notice earlier this month, in one of several filings Monday.

  • July 21, 2014

    IBRC Gets OK For Tampa Mall Sale After Pact Ends Opposition

    Chapter 15 debtor Irish Bank Resolution Corp. got the green light to sell its interests in a Florida shopping mall for $9 million Monday as a Delaware bankruptcy judge blessed the results of a weekend settlement that sweetened the deal and defused opposition from a spurned suitor.

  • July 21, 2014

    Texas Firm Hits Client With Fee Suit Over ‘Nightmare’ Case

    Acosta & Associates PC on Friday slapped a former client with a suit in Texas state court seeking at least $500,000 in punitive damages, alleging the client refused to pay legal fees after the firm helped him escape from what a federal judge called a nightmarish bankruptcy case stemming from a contract dispute between two tech companies.

  • July 21, 2014

    Picard Can't Appeal 'Good Faith' Madoff Clawback Ruling

    U.S. District Judge Jed Rakoff refused on Monday to let the liquidating trustee for Bernard L. Madoff’s defunct firm seek appellate review of a decision weakening clawback suits against investors affected by the Ponzi scheme, saying the cases should not “languish” while the Second Circuit tackles a narrow question of law.

  • July 21, 2014

    Bankrupt Tactical Lands $6.9M Bidder For Combat Boot Line

    Bankrupt military outfitter Tactical Intermediate Holdings Inc. on Monday won approval in Delaware federal court to conduct a speedy sale of its combat boot division after lining up a $6.9 million stalking horse bidder to purchase the unit as a going concern.

  • July 21, 2014

    'Girls Gone Wild' Founder Faces Contempt For Flouting Orders

    “Girls Gone Wild” founder Joe Francis was found in contempt Friday for entering the offices of his bankrupt company, harassing employees and not returning two company cars in violation of a temporary restraining order and preliminary injunction, a California bankruptcy judge ruled.

  • July 21, 2014

    Lehman Estate Settles Lingering Credit Swap Dispute

    Lehman Brothers Holdings Ltd. on Friday unveiled a settlement ending a dispute over the $144 million in collateral securing notes covered by a credit default swap arrangement that the swap counterparty terminated in the wake of Lehman's 2008 bankruptcy.

  • July 21, 2014

    NH Suit To Block US From $194M Bankruptcy Deal Advances

    A New Hampshire federal judge on Monday rejected the U.S. government’s attempt to escape the state insurance commissioner’s lawsuit seeking to block the U.S. from taking a cut of $194 million set aside for claims arising from Home Insurance Co.’s bankruptcy.

  • July 18, 2014

    Freedom Inks Tentative $2.9M Deal For Contamination Suits

    Freedom Industries Inc., the bankrupt company blamed for a chemical spill that contaminated the drinking water in West Virginia, reached a tentative settlement worth at least $2.9 million with the plaintiffs of a class action, according to a filing in West Virginia federal court on Friday.

  • July 18, 2014

    Miami Condotel Ex-Owner Sues Partner Over $17M Loan

    The largest shareholder of Miami hotel and condominium development One Bal Harbour's bankrupt former owner on Thursday sued his ex-business partner, claiming he was fraudulently induced to lend $17.45 million for the condotel that was never intended to be repaid.

  • July 18, 2014

    Lehman's Bond Fight With Nonprofit Kept In Bankruptcy Court

    A New York federal judge on Friday refused to take Lehman Brothers Holdings Inc.’s suit alleging a nonprofit health care provider breached a swap agreement out of bankruptcy court, finding the right to a jury trial doesn’t matter at this stage of the case.

  • July 18, 2014

    Creditors Blast Magazine Wholesaler's $24M Sale Plan

    The creditors committee in Source Home Entertainment LLC's bankruptcy balked Thursday over the magazine wholesaler's $24 million sale plan for its retail display business, arguing that it's too rushed and claiming that the stalking horse bidder in the asset sale is actually a controlling insider.

  • July 18, 2014

    Senior Momentive Lenders Sue For Creditor Deal Breaches

    Senior secured lenders of bankrupt industrial silicone and quartz producer Momentive Performance Materials Inc. have sued a group of junior counterparts in New York state court, claiming they breached a creditors’ pact by supporting the debtor’s prenegotiated plan to shed $3 billion in debt.

  • July 18, 2014

    Judge Keeps Visteon Retiree Benefit Row In District Court

    A Delaware federal judge on Friday refused to transfer to bankruptcy court a putative class action filed by retirees challenging Visteon Corp.’s move to end their health benefits after the auto parts maker’s exit from Chapter 11 protection.

  • July 18, 2014

    OSG Set To Sail Out Of Ch. 11 With Confirmed Plan

    A Delaware bankruptcy judge confirmed Overseas Shipholding Group Inc.’s restructuring plan Friday, clearing the way for the oil tanker giant to depart Chapter 11 under the ownership of former shareholders.

  • July 18, 2014

    MF Global Workers Get Class Cert. On Vacation Pay Claims

    The MF Global Inc. trustee failed on Thursday to limit claims for unpaid vacation time owed to workers terminated in the firm’s hectic 2011 collapse when a New York bankruptcy judge ruled that converting the claims to a class action would not short-change other creditors.

  • July 18, 2014

    9th Circ.: Malpractice Suit Is Bankruptcy 'Core Proceeding'

    The Ninth Circuit ruled Friday that a post-petition claim brought against a professional appointed by a bankruptcy court is a core proceeding for jurisdictional purposes, upholding the affirmance of a dismissal of a malpractice suit against an attorney for an unsecured creditors' committee.

  • July 18, 2014

    Creditors Say Kid Brands Doesn't Need $49M DIP Loan

    Creditors unhappy with Kid Brands Inc.’s proposal to tap $49 million in debtor-in-possession financing said that the loan is unnecessary for the child product maker’s continued operations and will hand lender Salus Capital Partners LLC undeserved collateral rights over dwindling company assets.

  • July 18, 2014

    Energy Future Says It Might Toss Ch. 11 Creditor Deal

    Bankrupt power giant Energy Future Holdings Corp. told a Delaware bankruptcy judge Friday that it is considering tossing its prearranged restructuring plan in the wake of several new proposals, including one just this week from NextEra Energy Inc. and a group of junior noteholders.

  • July 18, 2014

    SEC Loses Bid To Make SIPC Repay Stanford Victims

    The D.C. Circuit on Friday affirmed a landmark lower court ruling preventing the U.S. Securities and Exchange Commission from ordering the Securities Investor Protection Corp. to compensate victims of Robert Allen Stanford's $7 billion Ponzi scheme, finding the victims were not customers of a SIPC entity.

Expert Analysis

  • An Inventive Way To Remove Pure State Court Claims

    Michael E. Blumenfeld

    Nondiverse state court defendants facing purely state law claims that seek to secure federal jurisdiction should determine whether a good faith basis exists to pursue a third-party action against a federal actor in order to trigger the representative U.S. Attorney’s certification and remove such claims under the Westfall Act, say Michael Blumenfeld and Jonathan Singer of Miles & Stockbridge PC.

  • Separate Classification Gone Too Far

    Scott M. Grossman

    A district court decision in CWCapital Asset Management v. Burcam Capital II may bolster the arguments of secured creditors in opposing cramdown efforts by debtors who may have been emboldened by other recent decisions supporting creative classification schemes, say Scott Grossman and Ari Newman of Greenberg Traurig LLP.

  • Powerful Tools For Discovery And Litigation Strategy

    Nathalie Hofman

    Analytics offer opportunities for refining both discovery strategy and overall litigation strategy by providing information to support better informed decisions. As an added bonus, they can result in significant cost savings, say Nathalie Hofman and Carolyn Southerland of Huron Consulting Group Inc.

  • Madoff Foreign Entanglement Ruling Unsurprising

    Michael L. Cook

    U.S. District Judge Jed Rakoff’s recent decision to block the Madoff Securities trustee's ability to recover customer funds transferred abroad by foreign feeder funds is hardly novel in view of U.S. Supreme Court and Second Circuit precedent, says Michael Cook of Schulte Roth & Zabel LLP.

  • PRISM Scatters Attorney-Client Privilege

    Any attorney sending or storing confidential client information or privileged communications via the cloud may be knowingly exposing those communications to scrutiny by the U.S. government via programs such as the National Security Agency’s PRISM — and arguably, even waiving any claim of privilege as a result, say attorney Thomas Mullaney and Vaultive CEO Elad Yoran.

  • OPINION: Let's Financially Reward Law Firm Diversity

    Patricia K. Gillette

    It only took the threat of a 10 cent cost increase to make people bring their own bags to Bay Area grocery stores. What if we gave partners an extra $10,000 for increasing diversity in their firms? asks Orrick Herrington & Sutcliffe LLP partner Patricia Gillette.

  • Crucial Predictive Coding Case Law: Progressive V. Delaney

    Emily Cobb

    Any practitioner considering predictive coding should fully consider Magistrate Judge Peggy Leen’s reasoning in Progressive Casualty Insurance v. Delaney and the potential pitfalls associated with failure to consistently cooperate, say Emily Cobb and Annamaria Enenajor of Ropes & Gray LLP.

  • Takeaways From 6th Circ.'s AmFin Tax Refund Ruling

    Steven Wilamowsky

    The concurring opinion in the Sixth Circuit’s AmFin Financial Corp. ruling may have been correct in its conclusion that the majority was too quick to dismiss as disfavored “federal common law” the Ninth Circuit rule that would give AmFin’s loss-generating subsidiary the benefit of the tax refund it created, say Steven Wilamowsky and Amelia Joiner of Bingham McCutchen LLP.

  • OPINION: Advance Conflict Waivers Send Wrong Message

    Eric L. Lane

    If there is anything that would convince big law firms to ditch the advance conflict waiver, it is the financial bottom line. And I can assure you firms are losing new client opportunities because of these waivers, says Eric Lane of Green Patent Law.

  • Is Electricity A Good Or Service? The Debate Charges On

    Neil Steinkamp

    While the world continues to sort out the tricky question of how to classify electricity, bankruptcy courts should focus instead on interpreting Section 503(b)(9) in light of the key principles underlying the Bankruptcy Code, say members of Arizona State University and Stout Risius Ross Inc.