Bankruptcy

  • July 30, 2014

    $1.75M Exec Bonus Plan OK'd In Bankrupt Revel Casino Sale

    A New Jersey bankruptcy judge on Wednesday approved a plan that would give Revel AC Inc., owner of Atlantic City’s beleaguered Revel Casino Hotel, permission to dole out $1.75 million in executive bonuses in connection with the hotel's sale.

  • July 30, 2014

    Bankrupt Natrol Gets Nod For Cerberus Settlement

    A Delaware bankruptcy judge on Wednesday blessed a settlement between nutritional supplement maker Natrol Inc. and private equity lender Cerberus Business Finance LLC, removing the specter of litigation that threatened to bog down the vitamin company’s reorganization plans.

  • July 30, 2014

    Bankruptcy Judge Keeps GM Ignition Switch Case On Pause

    A New York bankruptcy judge on Wednesday denied a bid by plaintiffs to proceed with a proposed class action against General Motors Co. over an ignition switch defect, ruling that their suit — like nearly 90 other related cases — should be stayed while he considers whether GM can use its bankruptcy defense.

  • July 30, 2014

    Detroit Pensioners Face Moment Of Truth On Ch. 9 Appeals

    The Sixth Circuit late Tuesday gave retiree groups that have inched toward abandoning their fight against Detroit’s pension-cutting plan a Thursday deadline to make up their minds, saying their decision can't wait because the appeals must be resolved before the city’s blockbuster confirmation trial.

  • July 30, 2014

    BofA Says Its Ch. 11 Plan For Real Estate Group Is Best

    Bank of America NA on Wednesday filed a disclosure statement for its proposed Chapter 11 reorganization plan for Security National Properties Funding III LLC on behalf of lenders, saying attempts at consensual resolution have failed as the debtor's properties have underperformed.

  • July 30, 2014

    4 Chinese Solar Panel Cos. Seek Novel Ch. 15 Protection

    Four Chinese solar panel companies are seeking Chapter 15 bankruptcy protection of their U.S. assets, including approximately 275,000 photovoltaic panels, in what might be the first such filing, the debtors’ attorneys at Archer & Greiner PC announced Wednesday.

  • July 30, 2014

    Lehman Trustee OK'd For 1st Unsecured Creditors Refund

    With former customers of Lehman Brothers Inc. being paid off in full, the trustee charged with winding down the failed investment house won permission in New York bankruptcy court Wednesday to create a $3 billion fund and dish out estate money to general unsecured creditors for the first time.

  • July 30, 2014

    Failed Philly Casino Venture Wins Ch. 11 Plan Approval

    A Pennsylvania federal bankruptcy judge has approved a modified Chapter 11 plan in the bankruptcy of Philadelphia Entertainment and Development Partners LP, the entity behind a planned Foxwoods casino project that fell through in 2010.

  • July 30, 2014

    Securities Discovery Ban Hinges On Subpoena Date: 9th Circ.

    The Ninth Circuit has ruled that a key securities law was never intended to ban the use of evidence requested prior to discovery freezes, reviving a class action Wednesday against the bankrupt maker of an electronic scratch-off card and greenlighting investors' evidence related to a catastrophic merger rollback.

  • July 30, 2014

    Argentina Headed To Default After Debt Talks Collapse

    Eleventh hour negotiations between the Republic of Argentina and hedge funds demanding full repayment on approximately $1.5 billion worth of government bonds collapsed late Wednesday without a deal, and a court appointed mediator said the country will “imminently" default on its sovereign debt. 

  • July 30, 2014

    Suit Over Anglo Irish Bank Overcharges Won't Be Heard in NY

    A New York federal judge on Tuesday tossed a racketeering suit launched by Irish property developer John Flynn and his family alleging Ireland’s National Asset Management Agency covered up loan overcharges made by the bankrupt Anglo Irish Bank, saying the suit belongs in Ireland.

  • July 29, 2014

    Bondholders Make 11th-Hour Bid To Stop Argentine Default

    Investment firms holding euro-denominated restructured Argentine debt on Tuesday asked the U.S. federal judge overseeing Argentina’s fight with hedge funds holding about $1.5 billion in government bonds for more time to reach a settlement, as Argentina teeters on the brink of default.

  • July 29, 2014

    Bankrupt Ship Co. CEO Casts $100M IP Suit Over Vessel Sale

    The CEO of troubled Taiwanese shipping firm TMT Group launched a suit in Texas federal court Monday, alleging that a planned bankruptcy sale of three company ships to Mega International Commercial Bank Co. Ltd. will strip him of intellectual property worth more than $100 million.

  • July 29, 2014

    Lehman Trustee Erases Ex-Broker's $5.5M Arbitration Claim

    A New York bankruptcy judge on Monday wiped out a former Lehman Brothers Inc. broker’s $5.5 million bankruptcy claim seeking to hold the defunct investment firm responsible for covering a 2008 arbitration award in favor of ex-clients who accused her of churning their accounts.

  • July 29, 2014

    $150B Forfeiture Claims May Delay Madoff Aides' Sentencing

    The sentencing of five former Bernard L. Madoff Investment Securities LLC employees convicted of aiding the Ponzi scheme could be delayed yet again as defense attorneys dispute the government's $150 billion forfeiture claim, a New York federal judge said Tuesday.

  • July 29, 2014

    EU Approves $260M Aid For Struggling Polish Airline LOT

    The European Commission on Tuesday approved Poland’s plan to aid struggling airline LOT, the country’s flagship carrier, with €193.6 ($259.6 million) to support a restructuring program intended to stave off bankruptcy, ruling the money will not unduly distort competition.

  • July 29, 2014

    Suit Alleging Shareholder Caused ProxyMed Bankruptcy Is Cut

    A Delaware federal judge on Monday tossed one claim and left the other two intact in a suit alleging that the actions of private equity firm General Atlantic LLC and its managing director led to the bankruptcy of ProxyMed Inc., which provided information technology services to doctors, pharmacies and labs.

  • July 29, 2014

    Detroit Audit Finds City Was Insolvent Prior To Bankruptcy

    The city of Detroit released a long-overdue audit finding it was insolvent when it requested Chapter 9 protection last year in the face of its $18 billion debt pile and a $130 million budget deficit that forced a series of creditor defaults, while the bankruptcy judge on Tuesday delayed its hotly anticipated confirmation trial by a week.

  • July 29, 2014

    Convicted CFO Agrees To Pay $1.7M Back To Bankrupt Co.

    The former chief financial officer of bankrupt Fair Finance Co., currently serving a 10-year prison sentence, has agreed to pay $1.76 million to the company's bankruptcy trustee after participating in a $200 million scam involving the CEO of movie company National Lampoon Inc.

  • July 29, 2014

    Love Culture Calls Insider's E-Commerce Sell-Off A 'Ruse'

    Love Culture Inc. on Monday launched an adversary case in New Jersey bankruptcy court against one of its directors over what it said was a bogus $2.5 million sale of the clothing retailer's e-commerce assets to a company that he purportedly owns.

Expert Analysis

  • Death Rattle For Unfinished Business Claims?

    Angelo G. Savino

    In a departure from Jewel v. Boxer, the decisions in the cases of Thelen LLP and Heller Ehrman LLP reflect a shift in the manner by which courts treat trustees’ claims for post-dissolution fees, say Angelo Savino and Julie Moeller Albright of Cozen O'Connor.

  • How To Successfully Get Engaged By A Cayman Liquidator

    Jeremy Snead

    Recent shifts in Cayman Islands law mean that Cayman liquidators are now able to retain foreign lawyers for the liquidation of Cayman-registered funds on more flexible terms, and utilize methods of funding that are not otherwise permissible in the territory, say Tony Heaver-Wren and Jeremy Snead of Appleby (Cayman) Ltd.

  • SDNY Weighs In On Third-Party Releases In Bankruptcy

    Frank Grese

    U.S. Bankruptcy Judge Sean Lane of the Southern District of New York in the case of Genco Shipping & Trading Limited waded into the controversy by considering the appropriateness of third-party releases — and nonconsensual ones at that, says Frank Grese of Weil Gotshal & Manges LLP.

  • 11th Circ. Extends FDCPA To Bankruptcy Proofs Of Claim

    Jarrett L. Hale

    The Eleventh Circuit’s ruling in Crawford v. LVNV Funding leaves open the possibility that the Fair Debt Collection Practices Act and related state corollary statutes may be applicable to bankruptcy proofs of claim, which will likely result in increased litigation against debt collectors and, potentially, actual creditors, say attorneys with Hunton & Williams LLP.

  • 6 Years In, Why Haven't FRE 502(d) Orders Caught On?

    John A. Rosans

    In this e-discovery era, why aren't more litigants using Federal Rule of Evidence 502(d) orders and affording themselves basic protection of their most sensitive information? Or, if they are moving for such orders, why are they doing it wrong? asks John Rosans of Katten Muchin Rosenman LLP.

  • Rakoff's Foreign Fund Clawback Ruling Has Limitations

    Raniero D’Aversa

    Judge Jed Rakoff’s recent ruling in the case of Madoff Securities gives comfort to foreign investors that the proceeds of their indirect investments in U.S. companies will not likely be clawed back, but it does not come without certain warnings and limitations — especially considering a contradictory Ninth Circuit ruling issued a mere three days prior to Rakoff’s decision, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • Code Trumps Contract In The 5th Circ.

    Debra McElligott

    The Fifth Circuit opinion in Goldsby v. 804 Congress suggests that even where parties agree upon foreclosure-related fees, costs and charges before a bankruptcy, Section 506(b) of the Bankruptcy Code may still trump the provisions of their contract, says Debra McElligott of Weil Gotshal & Manges LLP.

  • Trial-Ready In 180 Days: Prepare For SDNY's Rocket Docket

    Isaac S. Greaney

    A growing trend in the Southern District of New York akin to a sua sponte rocket docket can provide defendants with an opportunity to set the tone of discovery and shift the burden and risks of the schedule to their adversaries, say Isaac Greaney and Jackie Lu of Sidley Austin LLP.

  • When You Are Responsible For Your Book Of Business

    Jennifer Topper

    Finding prospective clients and retaining them has little to do with your legal training and expertise, and yet you have no practice without successful client acquisition and retention. There is no reason you cannot apply your basic legal training to successful sales efforts hinging upon your practice strength and experience, says independent law firm consultant Jennifer Topper.

  • 4th Circ. Provides Guidance On Nondebtor Releases

    Jason W. Harbour

    The Fourt Circuit's second opinion in the case of National Heritage Foundation shows that it is imperative for the proponent of a nonconsensual nondebtor release to provide appropriate evidence to justify approving such a release, although the court did not draw a bright line as to how many of the six Dow Corning factors must be satisfied, say Jason Harbour and Tara Elgie of Hunton & Williams LLP.