Hedge funds and banks financing the bankruptcy of Endeavour Operating Corp. urged a court on Friday not to let unsecured creditors extinguish $440 million in obligations, saying the unsecured creditors don't have standing to sue over a prebankruptcy refinancing that could dramatically decrease their recoveries.
Bankrupt RadioShack Corp. on Friday answered objections from several states to its plan to auction its expansive customer data collection, and said assertions by one its most vocal opponents, the Texas attorney general, that the iconic retailer has been unresponsive are not true.
The unsecured creditors committee in Quicksilver Resources Inc.'s Chapter 11 case pushed the Delaware bankruptcy court Monday to reject the oil and gas company's plan to spend $11 million to drill four new wells with an affiliate of Eni SpA, arguing the move makes little business sense so early in the case.
A Florida federal judge on Monday sentenced the former president and sole shareholder of bankrupt motor fuel distributor Delco Oil Inc. to six and a half years in prison for conspiracy to commit wire fraud and bank fraud
Allied Nevada Gold Corp. has proposed a bankruptcy repayment plan designed to turn creditors into shareholders through an upcoming auction that lawyers hope will bring in the $25 million necessary to reorganize the mining outfit around its primary gold and silver operation.
Real estate tycoon Glenn Straub, the new owner of the shuttered Revel Casino Hotel in Atlantic City, is facing another obstacle in his bid to reopen the property after New Jersey's gaming regulator told a bankruptcy court Monday that state law prohibits his company from assuming Revel's casino license from the previous owner.
A D.C. federal judge on Friday approved a $5.25 million settlement between a group of former US Airways Group Inc. pilots and the airline’s pension plan trustee over accusations it takes too long to hand out lump-sum benefits, six months after the judge revealed that a deal was in the works.
Garlock Sealing Technologies LLC told a North Carolina federal court Friday that mesothelioma law firm Belluck & Fox LLP is offering the same tired arguments in an effort to squelch pertinent discovery in an adversary suit accusing it of running a decadelong scheme to drive up settlement values in asbestos litigation.
The trustee managing the wind-down of Bernard L. Madoff Investment Securities LLC reached a settlement Friday totaling $11.1 million with three groups of defendants alleged to have received more than $58 million in fictitious profits from the Ponzi brokerage.
Cancer treatment developer Dendreon Corp. urged a Delaware bankruptcy judge Friday to reject a call by shareholders for the formation of an equity committee, saying such a group would only add needless costs to a Chapter 11 process already nearing its end.
Two of Australian satellite company and Chapter 15 debtor NewSat Ltd.'s most important contractors, Lockheed Martin Corp. and space launch firm Arianespace SA, launched challenges Friday to the Delaware bankruptcy court's temporary order last week halting creditor action, both arguing it shouldn't apply to their agreements as is.
Louisiana State University said Friday it would postpone issuing $114.5 million in bond debt it sold earlier in the week but sought to calm insolvency fears as state lawmakers grappled with a potentially deep round of budget cuts being forced on the state because of shrinking oil tax revenue.
Residential Capital LLC's liquidating trust urged a Minnesota federal judge Thursday not to dismiss its suit against Cadence Bank NA over financial harm that occurred when Cadence sold it 35,000 residential mortgages, many of which it says were toxic.
An attorney for film producer David Bergstein told a California appeals court Friday that Stroock & Stroock & Lavan LLP and Levene Neale Bender Yoo & Brill LLP weren’t protected by litigation privilege when they elicited secrets from Bergstein’s longtime attorney to use against him in an involuntary bankruptcy proceeding.
Junior bondholders made their final push on Friday to disqualify Kirkland & Ellis LLP as bankruptcy counsel for Caesars Entertainment Operating Co. over the firm’s alleged deep ties to the gaming company’s private equity sponsors, arguing Kirkland’s bias has been on display from the moment it took the case.
After months of radio silence, the Puerto Rico Electric Power Authority’s wrangling with well-heeled hedge funds spilled into an unusual public war of words that underscores creditor impatience with restructuring negotiations unfolding outside of a binding legal framework.
Mandelbaum Salsburg Lazris & Discenza PC is exiting YA Global Investments LP's malpractice suit over a $41 million loan for a failed resort, and dismissing accusations that Dentons played a substantial role in YA Global's losses, according to New Jersey federal court filings Friday.
A federal grand jury hit a California property developer with a 21-count indictment Thursday accusing the former owner of dozens of fast food franchises of defrauding banks of more than $20 million in inflated commercial loans.
Unsecured creditors to Energy Future Holdings Corp. moved Thursday to force the disclosure of bids for the bankrupt power giant’s treasured stake in nondebtor Oncor Electric Delivery Co. LLC, citing an “information asymmetry” they say undercuts their negotiating position.
Kirkland & Ellis LLP on Thursday squared off in court with junior creditors aiming to unseat the firm as bankruptcy counsel for Caesars Entertainment Operating Co., with one of its top attorneys denying any allegiance to private equity sponsors accused of looting the casino giant.
The nature and extent of a debtor’s interest in property is determined under applicable nonbankruptcy law, typically state law. However, whether a property interest falls within the categories included in the estate under Section 541 of the Bankruptcy Code is determined by application of the federal bankruptcy law, says Ira Herman of Thompson & Knight LLP.
Loan-to-own investors still have the ability to mitigate or even circumvent the credit-bid limitations of the Delaware bankruptcy court’s Fisker Automotive Holdings decision. A prudent investor can try to establish the validity and extent of its claim amounts and liens prior to an auction, whether by stipulation or otherwise, says Oscar Pinkas of Dentons.
The matter of Medpoint Management LLC highlights the risks and difficulties faced not only by marijuana businesses, but by their creditors too. Despite Medpoint’s income not directly arising from marijuana and the Cromnibus Act limiting prosecution of marijuana-related offenses, the court still dismissed Medpoint’s case, says John Spires of Dinsmore & Shohl LLP.
A recent Southern District of New York decision in the General Motors bankruptcy case raises important bankruptcy policy questions, including whether the outcome creates improper incentives for debtors that are subject to product liability and latent defect claims, and how the rights of creditors who are affected by lack of a claims bar date notice are to be dealt with in future cases, say Henry Jaffe and Lesley Welwarth of Pepper Hamilton LLP.
The ultimate implications of the U.S. Supreme Court’s Stern v. Marshall decision continue to unfold. But one implication is clear — bankruptcy courts are increasingly deciding state law claims by issuing proposed findings of fact and conclusions of law for the district court’s final review, as evident in Gomez v. Lone Star National Bank, a Southern District of Texas case stemming from a failed restaurant, says Kevin Hembree of Alston & Bird LLP.
What is the correct way to treat investors in a fund operated as a Ponzi scheme? Two decisions suggest the beginnings of a significant divergence between approaches in the U.S. and in the English common law world. That would be surprising and unwelcome, says Peter McMaster of Appleby Global Group Services Ltd.
“Litigate or settle” is the dispute resolution choice generally available in American courts, including bankruptcy courts. But Tribune and a series of post-Tribune investigations have shown that inquisitorial methods make sense in certain large bankruptcy cases involving complex legal disputes, says Dan Bussel, a professor at UCLA School of Law.
There are numerous issues to be taken into consideration regarding leases of personal property, including equipment leases, in the context of a bankruptcy filing. Such leases can be recharacterized as financing agreements rather than true leases, with disputes frequently occurring regarding the correct categorization of an equipment finance transaction as either a true lease or a veiled financing, says Ira Herman of Thompson & Knight LLP.
The Fifth Circuit’s decision in Barron & Newburger PC v. Texas Skyline Ltd. overrules prior precedent and adopts a broader, more permissive standard for approval of attorneys' fees under Section 330 of the Bankruptcy Code. The prospective standard could benefit financial advisers as well, says Elisha Graff of Simpson Thacher & Bartlett LLP.
A New York state appellate court decision approving a settlement agreement involving a large group of certificate holders for mortgage-backed securities, for which Bank of New York Mellon serves as trustee, reinforces that a trustee’s discretionary acts should not be second-guessed provided that the trustee acted in good faith, reasonably and prudently, say attorneys with Arent Fox LLP.