Bankruptcy

  • August 29, 2016

    11th Circ. Affirms Contempt Order In Missing Boat Case

    The Eleventh Circuit on Friday affirmed a bankruptcy court's civil contempt finding and sanctions against the owner of a missing shrimping boat for disappearing in an attempt to avoid paying a 20-year-old judgment to a fisherman who worked on the vessel.

  • August 29, 2016

    RadioShack Settles Manager OT Suits With $41M Claim

    The liquidating trustee overseeing the bankruptcy estate of electronics retailer RadioShack received approval Monday from a Delaware bankruptcy judge to settle a pair of class action suits relating to overtime calculations for store managers dating back to 2012.

  • August 29, 2016

    Insurer Fights Delay In Stevens & Lee Coverage Suit

    A legal malpractice insurer suing Stevens & Lee PC for allegedly failing to disclose a significant lawsuit risk asked a Pennsylvania federal judge Friday to reject the law firm's request to pause the suit, saying the dispute has little overlap with a case the practice says is related.

  • August 29, 2016

    SEC Bans Auditor For 3 Years Over OCZ Accounting Failure

    The U.S. Securities and Exchange Commission banned a former partner at accounting firm Crowe Horwath LLP from auditing public companies on Monday for his failure to catch an alleged accounting fraud that sent OCZ Technology Group Inc. into bankruptcy.

  • August 29, 2016

    EFH Urges Bankruptcy Court to Slash Dallas' $16.2M Claim

    Energy Future Holdings Corp. on Friday urged a Delaware bankruptcy court to reject a $16.2 million claim by the city of Dallas against an EFH unit for future rent for an untreated water purchase contract, saying that the claim had been incorrectly calculated.

  • August 29, 2016

    Real Estate Developer Gets 2 Years In Bankruptcy Fraud

    An Arizona real estate developer, who prosecutors said participated in a far-reaching investment fraud scheme that defrauded investors out of millions of dollars, was sentenced Monday to 24 months in federal prison for submitting false statements in a bankruptcy petition that came about because his scheme collapsed, officials said.

  • August 29, 2016

    Horsehead Equity Holders Object To Ch. 11 Plan, Valuation

    Horsehead Holding Corp.’s equity holders objected Friday to confirmation of the company’s Chapter 11, arguing that fiduciary breaches and failed company valuation and sale efforts made the metal recycling and processing company’s bankruptcy plan unapprovable.

  • August 29, 2016

    Caesars Creditor Suits Again Put On Hold For Appeal

    Caesars’ heavily indebted operating unit on Monday was granted additional time by an Illinois district judge to hold off multiple bondholder lawsuits brought against its parent company, giving the casino giant the opportunity to negotiate until next month a Chapter 11 plan without the immediate threat of litigation.

  • August 29, 2016

    Halcon Ch. 11 Plan Under Fire From IRS, Pa. Law Firm

    Halcon Resources Corp.’s prepackaged Chapter 11 restructuring plan, designed to eliminate roughly $1.8 billion in debt, came under fire in Delaware bankruptcy court Monday, with the Internal Revenue Service claiming the company didn’t file a tax return and a law firm arguing the plan would hurt creditors.

  • August 29, 2016

    SunEdison Looks To Lock In $150M Bid For Solar Materials Biz

    SunEdison on Friday sought permission from a New York judge to make Chinese manufacturer GCL-Poly the leading bidder for the bankrupt renewable energy company's solar materials business with a $150 million bid, as SunEdison continues to sell off its assets in Chapter 11.

  • August 29, 2016

    Sports Authority Defends $1.5M Executive Bonus Program

    Sporting goods retailer Sports Authority fired back at the United States Trustee on Monday in Delaware bankruptcy court, filing a reply to the watchdog’s objection to a proposed executive incentive plan that could result in up to $1.5 million in payments to top-tier employees.

  • August 29, 2016

    Tilton Resists Subpoena Bid In TransCare Class Action

    Patriarch Partners LLC, Lynn Tilton's private equity firm, asked a New York federal judge Monday to force a proposed class of former TransCare Corp. employees to withdraw subpoenas against two third parties, arguing the court is still deciding whether to send the worker layoff case to bankruptcy court.

  • August 29, 2016

    SFX Creditors Object To 'Byzantine' Disclosure Statement

    Unsecured creditors of electronic music festival organizer SFX Entertainment Inc. objected to the company's proposed Chapter 11 disclosure statement Friday, saying the plan outlined is too complicated and leaves unsecured creditors out in the cold.

  • August 29, 2016

    Japanese Bank Can't Escape Mt. Gox Bitcoin Dispute

    A Japanese bank must face some liability for financial losses arising from the closure of the Mt. Gox Bitcoin exchange, an Illinois federal judge ruled Friday, finding that the proposed class of customers sufficiently showed that the bank’s improper conduct led to its unjust enrichment.

  • August 29, 2016

    Samson Creditors Call Revised Plan 'Declaration Of War'

    An attorney representing Samson Resources’ unsecured creditors said Monday that the $4.9 billion Chapter 11 case appears headed toward costly litigation after the company filed a revised restructuring deal in Delaware bankruptcy court that would pay off a senior loan in full and hand control of the business to second lien lenders.

  • August 29, 2016

    Greenberg Can't Nix $2M Clawback Suit, Co.'s Estate Says

    The bankruptcy estate of a medical center management company has pushed a Texas federal court to carry on with a $2 million suit accusing Greenberg Traurig LLP of receiving fees that are technically fraudulent transfers, arguing the firm has continually shifted the focus of its dismissal efforts. 

  • August 29, 2016

    Boeing Defends Privileged Docs In $1.2B Contract Fight

    Boeing Co. told an Alabama federal court on Friday that it doesn't have to produce unredacted versions of certain documents in a dispute with Alabama Aircraft Industries Inc. over a nearly $1.2 billion Air Force contract, arguing that the bankrupt company is trying to exploit the documents' initial, inadvertent release.

  • August 29, 2016

    Martin Shkreli Sells Remaining Stake In KaloBios

    Martin Shkreli sold his remaining stake in KaloBios Pharmaceuticals Inc., the rare disease biopharmaceutical company that he helmed for a month prior to his arrest, ending a brief, tumultuous relationship with the drug company, according to filings on Monday.

  • August 26, 2016

    SunEdison Wants Class Actions Consolidated In New York

    SunEdison, TerraForm and other defendants in 15 lawsuits brought against the bankrupt solar company urged the Judicial Panel on Multidistrict Litigation on Thursday to consolidate the cases in New York because they share common factual issues, but non-class action plaintiffs countered that the transfer would unnecessarily delay their litigation.

  • August 26, 2016

    High Court Asked To Revisit Bankruptcy Code's Safe Harbor

    A litigation trustee has asked the U.S. Supreme Court to overturn a Second Circuit ruling that the Bankruptcy Code preempted her suit attempting to claw back $143 million Barclays PLC received ahead of SemGroup LP's bankruptcy, saying the ruling wrongly trampled state law.

Expert Analysis

  • Health Republic’s Curious Liquidation: Part 3

    James Veach

    The New York Supreme Court recently decided that outside counsel and third-party administrators should post contracts and administrative costs online in order to help policyholders understand how Health Republic's assets are being spent. Creditors' committees are necessary for helping policyholders keep an eye on the Health Republic estate's expenses, says James Veach at Mound Cotton Wollan & Greengrass LLP.

  • State Of Texas Legal Market: Litigation Trends

    Michael K. Hurst

    Litigation in the Texas energy sector has increased substantially as a result of the drop in oil prices. The trends reflect a market reality where all participants, including contractors, insurers, lenders, partners and employees, are forced to embrace “lower for longer” pricing, say Michael Hurst and Jonathan Childers of Lynn Pinker Cox Hurst LLP.

  • Defining Attorney-Client Relationships In The Electronic Age

    Elizabeth Fitch

    As technology has advanced, the ways in which attorneys communicate with clients, potential clients, former clients and the public has created new and ill-defined issues relating to whether an attorney-client relationship exists. Attorneys Elizabeth Fitch and Theodore Schaer discuss the often nebulous yet hazardous concepts that could lead to malpractice issues.

  • State Of Texas Legal Market: It Isn’t Just About Oil

    Geoff Schuler

    Some market watchers believe that law firms with significant energy-related practices have experienced precipitous declines in revenue and profits due to the dip in oil prices. Yet, firms continue to be bullish on Texas, and those still looking for a point of entry will jump at the right opportunity, say consultants with LawVision Group LLC.

  • 4 Reasons Law Firm Business Development Initiatives Fail

    Adam Donovan

    By understanding four common reasons why law firm business development initiatives fail, we can more accurately define success, avoid pitfalls, and improve return on investment, says Adam Donovan, senior manager of patent business strategy at Fish & Richardson PC.

  • What Happens When A State Runs Out Of Money?

    Joseph V. Kennedy

    A number of states, including Illinois, New Jersey and Ohio, could become insolvent in the next two decades. It is not too early for Congress and the next president to start planning. Both the Detroit and Puerto Rico bankruptcies were preceded by years of denial in the face of increasingly inevitable facts, says Joseph Kennedy, former chief economist for the U.S. Department of Commerce.

  • The Psychological Edge Of Relieving Stressed Jurors

    Roy Futterman

    To guide overwhelmed jurors toward a calm, logical defense verdict in a high-stakes case, an attorney can apply the same psychological techniques that were developed in the treatment of substance abuse, says Dr. Roy Futterman, a clinical psychologist and director at DOAR Inc.

  • New Uncertainty Surrounds Disputes Over Foreign Stays

    Brian M. Wells

    A recent decision by the U.S. Bankruptcy Court for the Western District of Texas in the case of Sanjel adds a wrinkle to the case law addressing the domestic application of foreign stays through Chapter 15, and in particular, whether it is appropriate for a bankruptcy court to modify or limit a foreign stay, says Brian Wells of Weil Gotshal & Manges LLP.

  • From BigLaw To Your Own Firm: 4 Tips For Legal Startups

    Russell Shinsky

    Highly successful attorneys who are thinking about leaving the safe haven of a large law firm to go out on their own face a number of issues specific to the legal profession. Russell Shinsky, chairman of Anchin Block & Anchin LLP's law firms industry group, shares four pillars of a successful startup law firm.

  • Energy Finance Attys Are Shifting Focus In Tough Times

    Kraig Grahmann

    In the boom years of 2011 through 2014, energy lenders were directing their attorneys to “loosen up” credit agreements. Today’s distressed environment has seen lenders and their attorneys turn 180 degrees to shift their focus to a range of new issues, say Kraig Grahmann and Buddy Clark of Haynes and Boone LLP.