A trustee for two bankrupt Florida investment firms on Thursday hit BMO Harris Bank NA with a $24 billion adversary suit, alleging its Marshall & Illsley Bank helped convicted Ponzi scammer Thomas Petters bilk investors out of $3.7 billion.
Creditors of the reorganized hotel media provider formerly called LodgeNet Interactive Corp. sued Wednesday to block a “radical and brazen” restructuring plan crafted by fellow creditor Mast Capital Management LLC, saying it subordinates their debt in violation of LodgeNet’s Chapter 11 plan.
Creditors of bankrupt Prospect Park Networks LLC, which tried to extend the run of soap operas "One Life to Live" and "All My Children" online, blasted the production company's disclosure statement on Thursday, saying it omits key information and touts a plan that cannot be confirmed.
Greenberg Traurig LLP and Alvarez & Marsal NA LLC, the respective former bankruptcy counsel and financial adviser for accused Ponzi schemer TelexFree LLC, agreed Wednesday to reduce their pay by a total of roughly $1 million in exchange for the U.S. Securities and Exchange Commission not opposing their fee applications.
A New York federal judge’s refusal to let Citibank NA process an upcoming payment on $8.4 billion in Argentine sovereign debt has put a “gun to our head” and could land the bank under criminal prosecution in Argentina if allowed to stand, its attorney told the Second Circuit on Thursday.
A Delaware bankruptcy judge on Thursday authorized Associated Wholesalers Inc. to pay more than $1.7 million in cigarette taxes, a move the cooperative food distributor said is crucial to maintaining its customers and sale value.
A Delaware bankruptcy judge has ended a suit by a managing director of a WorldSpace unit, saying Wednesday that the man's specific subsidiary was not a debtor entity and so he doesn't have standing to sue for back wages.
A New York appeals court on Thursday affirmed tossing a legal malpractice suit that the founder of The Lightstone Group LLC and former head of Extended Stay Inc. lobbed against Willkie Farr & Gallagher LLP over $100 million in personal liability incurred from the hotel chain's bankruptcy.
The Third Circuit on Thursday rejected Intertek USA Inc.'s argument that orders entered in Caribbean Petroleum Corp.'s Chapter 11 bankruptcy case give priority to tort claimants over other general unsecured creditors in the distribution of certain insurance proceeds, saying the plain language of the orders makes no such provision.
Card transaction processor Phoenix Payment Systems Inc. cancelled its Thursday bankruptcy auction, saying it didn’t get any qualified bids and would pursue North American Bancard LLC's $50 million stalking horse offer for the company, which was said to have attracted significant prepetition interest.
Eagle Bulk Shipping Inc. secured court approval Thursday of a prepackaged Chapter 11 plan that will put lenders in control of the company and erase $975 million in debt from its balance sheet.
A Texas federal judge on Tuesday left Hallwood Energy LP’s estate trustee a single “narrow” claim in its $50 million malpractice suit against Hunton & Williams LLP, agreeing with a bankruptcy judge who ruled the trustee could only seek a recovery of fees.
The Federal Home Loan Mortgage Corp. filed a $1.3 billion suit against Deloitte & Touche LLP in Florida state court Monday, claiming the accounting giant turned a blind eye to fraud at Taylor Bean & Whitaker Mortgage Corp. and produced flawed audit reports.
A California federal judge on Tuesday tossed a putative shareholder class action against the directors and officers of bankrupt electric vehicle charger maker ECOtality Inc., ruling that their allegedly misleading statements about the company's viability were either protected forward-looking statements or not intentionally misleading.
AgFeed Industries Inc. agreed to pay $7 million to end a putative class action brought by investors who said the bankrupt animal nutrition and commercial hog-production company and its executives lied about the company’s financial health, according to a filing in Tennessee court Wednesday.
The judge presiding over Detroit's bankruptcy on Wednesday gave Financial Guaranty Insurance Co. and several hedge funds a week to refashion their objections to the city’s debt restructuring after a onetime ally against the Chapter 9 plan dropped out.
The bankrupt owner of a Texas asphalt refinery caught up in a bitter family feud unveiled plans Wednesday to sell it for $100 million to a portfolio company of private equity firm EnCap Flatrock Midstream, enough to pay off creditors in full and leave equity holders in the money.
A Delaware bankruptcy judge on Wednesday gave women's clothing retailer Coldwater Creek Inc. the green light for its Chapter 11 liquidation plan, which will divvy up the estate's remaining assets and provide a recovery for unsecured creditors initially thought to be out of the money.
The owner of the Margaritaville Casino and Restaurant in Biloxi, Mississippi, filed for Chapter 11 bankruptcy protection in a Mississippi bankruptcy court Tuesday, just a day after the struggling casino shut down after a little more than two years in business.
Smallpox drug manufacturer Siga Technologies Inc. won’t be able to appeal a potential $232 million judgment stemming from a failed merger and subsequent licensing litigation without Chapter 11 protection, the defense contractor’s attorneys said Wednesday in New York bankruptcy court.
Decisions interpreting subordination agreements often serve as a reminder of the importance of using precise language. In the Chapter 11 case of Momentive Performance Materials, potential ambiguity created by four words — “junior in any respect” — opened the door to litigation, says Charles Persons of Weil Gotshal & Manges LLP.
Although publication notice is often how debtors provide constitutionally sufficient due process to unknown claimants, a recent opinion in the New Century bankruptcy case serves as a reminder that debtors must be diligent in how they determine when and where to publish notice of a claims bar date, say Jason Harbour and Matthew Mannering of Hunton & Williams LLP.
Ultimately, the appropriate methodology for a cramdown interest rate is a value allocation tug-of-war between debtors, secured creditors and more junior creditors, and Judge Robert Drain’s decision in the Chapter 11 case of Momentive Performance Materials affords additional weight to debtors in that battle, says David Griffiths of Weil Gotshal & Manges LLP.
Judge Robert Drain’s bench ruling in Momentive Performance Materials is unambiguous when it comes to its support for the “formula” approach in determining a cramdown interest rate for a secured creditor and in elucidating the guiding first principles that dictate how to calculate the applicable cramdown interest rate for a secured creditor’s allowed claim in a Chapter 11 case, says David Griffiths of Weil Gotshal & Manges LLP.
A recent Law360 article about the perennial BigLaw concern over how to recruit and retain female and ethnically diverse attorneys addressed a new approach being taken by some law firms — going beyond traditional mentoring programs by creating a sponsorship relationship. Pro bono can also play a part, say David Lash and Merle Vaughn of the Association of Pro Bono Counsel.
Concern has been expressed that a Fifth Circuit opinion in the bankruptcy case of TMT Procurement Corp. will put a chill on the willingness of lenders to enter into debtor-in-possession financing facilities. However, these concerns are unfounded in the context of usual and customary DIP financing, says Judith Elkin of Haynes and Boone LLP.
For a law firm, excess time dedicated to legal research generates waste, either in the form of artificially reduced billable hours or, particularly in flat or contingency fee projects, as overhead eroding the profitability of legal work. By measuring five factors, firms will begin to understand their own opportunities for improving profits, says David Houlihan of Blue Hill Research Inc.
A recent decision in Skumpija v. Warren provides a good opportunity to understand the extent to which lien avoidance benefits a debtor’s bankruptcy estate, as opposed to other lien holders waiting for a boost up the secured ladder, says Gabriel Morgan of Weil Gotshal & Manges LLP.
It would be helpful if bankruptcy courts were to conclude that there is no basis for the courts to oversee the process of payment of individual insureds’ defense fees — as Southern District of New York Bankruptcy Judge Martin Glenn did in the case of MF Global, says Kevin LaCroix of RT ProExec.
Each lawyer's practice is a self-run business, even within the platform of a firm, and yet the level of entrepreneurialism within the practice of law is oftentimes marginalized, says legal industry business development specialist Jenn Topper.