Bankruptcy RSS

  • April 16, 2014

    Quantum Foods To Go With $54M Oaktree Stalking Horse Bid

    Meatpacker Quantum Foods LLC said Wednesday that it has canceled its planned Chapter 11 auction and is set to seek court approval for the $54 million stalking horse bid from a unit of private equity firm Oaktree Capital Management LP called Raging Bull Acquisition Co. LLC.

  • April 16, 2014

    GM's Bankruptcy Shield Bid Will Test Asset Sale Terms

    In turning to a bankruptcy court for cover from an avalanche of lawsuits over faulty ignition switches, General Motors Co. is setting up a high-profile test of whether post-bankruptcy companies should be allowed to rid themselves of product liability claims through a Chapter 11 asset sale without offering plaintiffs anything in return.

  • April 16, 2014

    Money Centers Decries Ch. 11 Trustee Bid, Wants Auction

    Money Centers of America Inc. and its senior secured lender pushed back against attempts to have a Chapter 11 trustee appointed in its Delaware bankruptcy case, arguing Thursday that do so would scuttle the proposal to sell the debtor's assets in a bankruptcy auction.

  • April 16, 2014

    FDIC Trumps Jackson Walker In Row Over Bank's Legal Fees

    A Minnesota federal judge on Wednesday found that Jackson Walker LLP must return to the Federal Insurance Deposit Corp. the remaining amount on a retainer paid by a Minnesota-based bank that collapsed after it tried to convert to a Texas state savings bank.

  • April 16, 2014

    UK Court Rejects Madoff Feeder Fund's Clawback Suit

    A U.K. appeals court decided Wednesday that Fairfield Sentry Ltd., which fed billions of investor dollars into Bernard Madoff's notorious Ponzi scheme, couldn't recover payments made to investors who redeemed their shares before the scheme collapsed because certificates documenting the transactions were binding.

  • April 16, 2014

    Lucchese Associate Asks For Mistrial Due To Court Ejection

    A reputed Lucchese crime syndicate associate on Monday sought a mistrial in his prosecution for allegedly draining $12 million from a mortgage lender and forcing its bankruptcy, claiming a New Jersey federal judge infringed his rights and tainted the jury by ejecting him from court.

  • April 16, 2014

    CFTC Demands $645M Penalty For Peregrine Fraud

    The U.S. Commodity Futures Trading Commission asked an Illinois federal court on Wednesday to hit bankrupt Peregrine Financial Group Inc. with a monetary penalty of $645 million, nearly three times the amount of total investor losses from the brokerage firm’s nearly 20-year fraud and embezzlement scheme. 

  • April 16, 2014

    MF Global Brass Must Face Some Customer Claims

    An MF Global Inc. customer seeking at least $100 million in damages over the brokerage firm’s collapse may pursue some claims against Jon Corzine and five other top executives, a New York federal judge ruled Wednesday.

  • April 16, 2014

    Rising Star: Kasowitz Benson's Jeffrey Gleit

    Whether he’s representing debtors, creditors, investors or disgruntled former Dewey & LeBoeuf LLP partners, Jeffrey R. Gleit of Kasowitz Benson Torres & Friedman LLP plants himself wherever litigation and corporate work converge, earning him a spot among Law360’s top eight bankruptcy attorneys under 40.

  • April 16, 2014

    Judge Denies Womble Carlyle Fees From Star Dynamics

    An Ohio federal judge on Monday denied a request by attorneys with Womble Carlyle Sandrige & Rice LLP for $155,725 in reimbursement for representing bankrupt defense contractor Star Dynamics Corp. in its ongoing Chapter 11 case.

  • April 16, 2014

    Bitcoin Exchange Mt. Gox Abandons Rehabilitation Bid

    Bankrupt Japanese bitcoin exchange Mt. Gox has abandoned its plans to seek civil rehabilitation under bankruptcy protection and is moving forward with plans for liquidation in Tokyo bankruptcy court, the company said Wednesday.

  • April 16, 2014

    GM To Ask Bankruptcy Judge To Bar Defect Claims

    General Motors said Tuesday it will ask a bankruptcy judge to bar plaintiffs in litigation related to the automaker's ignition switch defect debacle from bringing their claims, saying the 2009 sale order that allowed it to exit bankruptcy protects it from such actions.

  • April 15, 2014

    Ind. Limestone Goes With PE Firm's $26M Stalking Horse Bid

    Bankrupt quarrier Victor Oolitic Stone Co., which does business as Indiana Limestone Co., canceled the scheduled Chapter 11 auction and is set to go with the $26 million stalking horse offer from a unit of private equity firm Wynnchurch Capital, an attorney for the debtor said Tuesday.

  • April 15, 2014

    Oak Rock Investors Accuse Auditor Of Missing $100M Fraud

    Two investors in Oak Rock Financial LLC slapped the auditor of the bankrupt lending company with a suit in New York court Friday over failing to detect a four-year fraud that resulted in more than $100 million in losses.

  • April 15, 2014

    The Great Persuader: 7th Circ. Chief Judge Diane Wood

    Seventh Circuit Chief Judge Diane Wood talks to Law360 about managing a court in crisis, surviving two U.S. Supreme Court near-misses, and tailoring crafty dissenting opinions that can change the mind of even the staunchest of ideological opponents.

  • April 15, 2014

    Telecom Co. TelexFree Hits Ch. 11 Blaming Compensation Plan

    Telecommunications and marketing company TelexFree Ltd. on Monday sought bankruptcy protection in Nevada, blaming a compensation plan for associates that has sucked the company’s liquidity dry.

  • April 15, 2014

    Former Execs Of Defunct Antioch Lose Bonus Protection Bid

    An Ohio federal judge on Monday refused to block an attempted clawback of bonuses earned by three former executives of bankrupt Antioch Co., finding there to be a disputed issue of fact as to whether the company was insolvent when the bonuses were awarded.

  • April 15, 2014

    Energy Future Misses Key Deadline Amid Restructuring Talks

    Energy Future Holdings Corp., the Dallas-based utility company at the center of bankruptcy rumors for several weeks, announced Tuesday that it would miss its deadline to file an annual financial report and that it is still discussing debt restructuring options with creditors.

  • April 15, 2014

    Detroit Deal Will Cut Pension Hikes For Ex-Cops, Firefighters

    The city of Detroit has reached an agreement with the organized labor group representing its retired police and firefighters that will trim annual cost-of-living increases to the retirees but spare their current pensions from any cuts, a mediator said Tuesday.

  • April 15, 2014

    Ex-Madoff Aides Seek Acquittal After Jury's Guilty Verdict

    Former Bernie Madoff associates, whom a jury found guilty of aiding the $65 billion Ponzi scheme, asked a New York federal court Tuesday to acquit them, saying there wasn't enough evidence to show criminal knowledge or intent to participate in any crime.

Expert Analysis

  • Considerations Before Appointing A Bankruptcy Trustee

    Excerpt from Lexis Practice Advisor
    Ilan D. Scharf

    The rights, powers and duties of the bankruptcy trustee should be as broad as possible in order to allow the trustee flexibility to operate and address various issues as they arise. While a trust agreement may simply state that a trustee is authorized to carry out the objectives of the trust and implement the terms of the plan, the better practice is to both provide a broad grant of authority and to also identify specific duties, says Ilan Scharf of Pachulski Stang Ziehl & Jones LLP.

  • Beware 'Jewel' Risks In Lateral Partner Hiring

    Pamela Phillips

    Jewel litigation has been filed after every major law firm bankruptcy in the past 10 years, including Lyon & Lyon, Brobeck, Coudert, Thelen, Heller and Howrey. These lawsuits have produced years of litigation, with similar suits expected in the Dewey bankruptcy. Despite the legal uncertainties surrounding such claims, hiring firms can take steps now to minimize their Jewel risk for any lateral hire, say attorneys with Arnold & Porter LLP.

  • Heartbleed Rains On The Legal Cloud Parade

    David Houlihan

    While the actual breaches are unknown, Heartbleed has the potential to expose all of a lawyer's files stored or transmitted online. The bug raises professional responsibility questions and offers confirmation of the greatest anxieties that the legal industry has about online practice. In fact, the timing is poor for many legal tech providers, following a general industry warming to cloud offerings, says David Houlihan of Blue Hill Research Inc.

  • The 363 Vs. 365 Battle Will Continue

    Kate Doorley

    The outcome of any conflict between Sections 363 and 365 of the Bankruptcy Code would likely turn on the approach adopted by the bankruptcy court. Although in the Spanish Peaks Holdings II matter the court appeared to side with cases holding that Section 363 trumps 365, the facts were unique enough that most courts applying a similar fact-intensive framework might decide that the 365 rights of a lessee or a licensee should be preserved instead, says Kate Doorley of Weil Gotshal & Manges LLP.

  • Recent Trend To Expand ERISA Liability Grows

    Neal S. Schelberg

    In a distinct trend, federal courts have found that, depending on the text of the underlying plan documents, unpaid employer contributions due under a collective bargaining agreement may be viewed as plan assets, such that the representatives of an employer who exercise fiduciary control over those plan assets can be held individually liable for the unpaid amounts — together with interest and penalties — under the Employee Retirement Income Security Act, say Neal Schelberg and Aaron Feuer of Proskauer Rose LLP.

  • Keep Your Audience From Checking Email: 5 Legal Talk Tips

    Michael H. Rubin

    Why do the majority of speakers get polite claps at the end of their talks while a few select others receive rousing applause? Having given more than 375 presentations to legal groups, bar associations, Fortune 500 companies and corporate gatherings, I’ve learned a few things about what not to do. Remember, great speakers don’t tell “war stories.” They don’t even give examples from their own practice, says Michael Rubin of McGlinchey Stafford PLLC.

  • Priorities Change When An Investment Firm Goes Belly Up

    Stephen Bedell

    A Seventh Circuit opinion in a dispute related to the Sentinel Management Group bankruptcy reinforces the importance of the portability of investment accounts carrying commodity customer funds, and recognizes the choice made by Congress to prioritize the stability of the financial markets ahead of other creditors when an investment firm becomes insolvent, say attorneys with Foley & Lardner LLP.

  • A Close Look At The Different Forms Of Exit Financing

    Excerpt from Lexis Practice Advisor
    Paul J. Keenan Jr.

    Many debtors feel that they are at the mercy of the credit markets when it comes to negotiating an exit facility. However, with proper foresight and planning, a debtor can substantially improve its prospects for obtaining successful exit financing. Whenever possible, a corporate borrower should begin working with its restructuring advisers even before entering Chapter 11, say Paul Keenan Jr. and Nancy Mitchell of Greenberg Traurig LLP.

  • Cash Collateral Orders Revisited Following ResCap

    Todd M. Goren

    A canvass of approved consensual cash collateral orders in recent large bankruptcy cases, including In re Residential Capital LLC, suggests the rarity, even nonexistence, of preordained methodologies for valuing collateral for the purpose of calculating an adequate protection claim, say attorneys with Morrison & Foerster LLP.

  • A Settling Party's Cross-Claim Shield In Bankruptcy Cases

    Barry V. Freeman

    Multiple defendants are frequently jointly sued in avoidance actions, and there is no federal statutory provision that insulates a settling defendant from indemnity and contribution claims from co-defendants. But incorporating the California Code of Civil Procedure’s Section 877.6 into the case might do the trick, says Barry Freeman of Jeffer Mangels Butler & Mitchell LLP.