A highly anticipated decision on the proper bankruptcy court for restructuring Caesars Entertainment Corp.'s biggest unit could set a precedent if dissatisfied creditors succeed in their strategy of pressing a preemptive bankruptcy to keep the $10 billion fight on friendlier turf.
The Chapter 7 estate for defunct wireless company Powerwave Technologies Inc. went on an avoidance action litigation blitz that culminated Tuesday with an adversary action blaming the firm’s former brass for alleged conduct, including a so-called "channel stuffing" accounting scheme, that the suit says ultimately caused it to spiral into bankruptcy.
Caesars Entertainment Corp.'s operating arm made a final push Tuesday to convince a Delaware bankruptcy judge that its Chapter 11 should be allowed to play out in Illinois, while a collection of creditors championed the First State as the appropriate forum for the high-stakes case.
New Jersey Gov. Chris Christie’s surprise appointment of an emergency management team to oversee Atlantic City’s finances is a credit negative not only for the reeling resort city but all of the state’s cash-strapped municipalities, a ratings agency said Tuesday.
A Minnesota federal judge has ended a suit seeking to move a transfer suit by the Petters trustee out of bankruptcy court and to district court, saying Opportunity Finance LLC’s motion to do so was egregiously tardy.
Bitcoin mining company CoinTerra Inc. has filed for Chapter 7 bankruptcy, less than two weeks after it was hit with a $5.4 million suit by a data center alleging nonpayment, which led to a default on some of CoinTerra’s secured notes.
A California federal judge on Monday paused a proposed shareholder class action against aerospace technology company Valley Forge Composite Technologies Inc., providing breathing room for a co-founder to fight charges stemming from allegedly illegal microcircuit sales to Hong Kong and China and participate in the company's bankruptcy proceedings.
Whiteford Taylor & Preston LLP has picked up a bankruptcy and appellate specialist who has just retired after 13 years as a partner and senior counsel focusing on the real estate and retail segments of bankruptcy at Sidley Austin LLP, the firm announced Tuesday.
An outside general counsel can pursue outstanding fees from a Detroit bank’s collapse into receivership without producing a written retainer agreement, the Sixth Circuit ruled Tuesday, rejecting the Federal Deposit Insurance Corp.’s broad reading of a documentation requirement.
A bill that would impose new disclosure requirements on asbestos injury claims from the massive trusts charged with disbursing insolvent companies’ funds was reintroduced Monday in the U.S. House of Representatives by U.S. Congressman Blake Farenthold, R-Texas.
The ex-wife of Sam Wyly on Monday sued the former Michael’s Stores Inc. chairman in Texas bankruptcy court, saying the former billionaire concealed the amount of stock he controlled during their divorce proceedings.
An Alabama federal judge on Monday ordered The Boeing Co. to hand over documents related to past allegations it breached written agreements, but largely dismissed a bid from bankrupt Alabama Aircraft Industries Inc.'s trustee requesting "pattern and practice" evidence in its $1.1 billion suit over a U.S. Air Force contract.
A Florida bankruptcy judge paved the way on Monday for the offshore Scrub Island Resort to execute a debt restructuring that pays off FirstBank Puerto Rico’s $122 million claim over 30 years, calling the bank’s request for a delay just its latest attempt to sabotage a turnaround and seize the project.
The Third Circuit on Monday reinstated sanctions against counsel the former chief of a defunct telecommunications firm over the filing of an adversarial complaint in the executive's messy bankruptcy, saying the complaint was filed in bad faith and increased costs of the proceedings.
The forum fight to determine which court will oversee the high-profile bankruptcy of Caesars Entertainment Corp.'s debt-laden operating arm kicked off on Monday, pitting creditors who want the Chapter 11 in Delaware against the casino company's desire to conduct the case in Illinois.
A former Lehman Brothers Inc. employee has renewed his battle for an $84 million bonus from the failed brokerage, telling a New York bankruptcy judge on Friday that Barclays PLC, his next employer, didn’t cover any of what Lehman allegedly owed.
A Third Circuit panel upheld a decision in favor of Downey Financial Corp.'s Chapter 7 trustee on Monday in a $370 million tax refund dispute with the Federal Deposit Insurance Corp., finding a tax sharing agreement with Downey’s subsidiaries ensured the funds are part of its bankruptcy estate.
Television networks who successfully blocked Aereo Inc. from rebroadcasting their programming said on Monday they mostly agree with the former online television streaming service on a process for a Chapter 11 asset sale, but reserve the right to object to the sale itself.
A California judge on Monday tentatively rejected a bid by individual owners of bankrupt developer Griffin Homebuilding Group LLC to toss Weyerhaeuser Realty Investors Inc.’s contract suit seeking $19 million, saying defendants didn’t prove WRI wasn’t damaged when the owners allegedly "looted” funds intended for development ventures.
The Federal Deposit Insurance Corp. says that the U.S. Supreme Court should uphold a Sixth Circuit decision that rescinded a $170 million tax refund granted to the bankruptcy estate of AmFin Financial Corp. because of an ambiguity in the holding company’s tax-sharing agreement.
The Southern District of New York’s opinion denying in large part two motions to dismiss filed by Caesars Entertainment Corp. in response to a lawsuit brought by noteholders is notable as being the first examination of Caesars’ pre-bankruptcy financial maneuvering and highlights some problems that could arise in the bankruptcy proceeding, says Mark Salzberg of Squire Patton Boggs LLP.
The Second Circuit last week declined to save a secured creditor who, as part of the termination of a $300 million General Motors financing, mistakenly also permitted the filing of a UCC3 termination statement pertaining to $1.5 billion in unrelated secured debt. The Second Circuit’s decision is not surprising, given long-standing case law, nor would the doctrine of mutual mistake help the bank, say attorneys with Troutman Sanders LLP.
Courts have raised concerns about the valuation process for distressed low-income housing tax credit projects, and have illustrated the complications involved in valuing “midstream” noninvestment-grade tax credits. Where the value of the credits will be contested, an in-depth market survey is highly recommended, says Mark Bossi, co-chairman of Thompson Coburn LLP's financial restructuring practice.
We trust our law firms with huge amounts of data, whether in or out of discovery, investigations or litigation. All too often, we have relied on privilege, confidentiality and attorney ethics as a proxy for data protection and information security. But in fact, law firms ought to be held to a much more stringent standard — and in-house counsel would be wise to begin with a number of specific inquiries, says legal industry consultan... (continued)
It is important to understand the value of a lender’s collateral, particularly in a workout or bankruptcy involving a low-income housing tax credit project, where the lender’s only recourse will be to the project itself. There are four unique aspects of an LIHTC project that impact valuation, says Mark Bossi, co-chairman of Thompson Coburn LLP's financial restructuring practice.
A recent Southern District of New York decision in the Chapter 7 case of Weidenbenner highlights the risks that a bank takes when it freezes a debtor’s bank account, say James Barresi and Mark Salzberg of Squire Patton Boggs LLP.
Prior to the commencement of a bankruptcy case, the waiver by a potential debtor of the protections afforded by the Bankruptcy Code is usually found to be unenforceable. As a recent bankruptcy court decision in the case of Triple A & R Capital Investment Inc. demonstrates, however, this general proposition has become more nuanced over the past few years, says Kyle Ortiz of Weil Gotshal & Manges LLP.
As corporate restructuring professionals increasingly adopt electronic strategies within Chapter 11 proceedings, understanding the differences between electronic signatures and electronic verification — commonly used technologies with contrasting schools of thought — is vital to choosing the right course for each case, say Laura Davis Jones of Pachulski Stang Ziehl & Jones LLP and Brelle Rohwer of UpShot Services LLC.
A Second Circuit decision in Bernard Madoff-related Picard v. Ida Fishman Revocable Trust extends the “very broad” reach of Bankruptcy Code Section 546’s safe harbor protections. In addition, the court’s extension of the “securities contract” definition provides important guidance to market participants on the application of the safe harbors, say attorneys with Willkie Farr & Gallagher LLP.
Courts going back more than 15 years have pointed out that the language of the insured vs. insured exclusion is unclear as it applies to claims by the Federal Deposit Insurance Corp., as in the Eleventh Circuit's recent ruling in St. Paul Mercury Insurance Co. v. FDIC, yet the insurance industry has failed to make its intent clear — the language should be construed against the insurer as drafter, says Peter Laun of Jones Day.