Bankruptcy

  • November 25, 2014

    Wells Fargo 'Living Will' Passes But Needs Work, Fed Says

    Two federal banking regulators tacitly approved Wells Fargo & Co.’s proposal for keeping its own theoretical bankruptcy from tearing down the U.S. financial system, but said Tuesday that the plan could use some improvements going forward.

  • November 25, 2014

    Top Caesars Creditors Allege 'Brazen' Asset-Stripping

    A bondholder trustee filed a lawsuit against Caesars Entertainment Corp. on Tuesday calling for the appointment of a receiver to unwind the “unimaginably brazen corporate looting” of a Caesars subsidiary near-certain to enter bankruptcy under an $18.4 billion debt load.

  • November 25, 2014

    Revel Appeals Order To Let AC Collect $33M In Unpaid Taxes

    Atlantic City's Revel Casino Hotel has appealed an order issued by a federal bankruptcy judge earlier this month allowing the resort city to collect about $33 million in unpaid property taxes owed by the bankrupt casino through the sale of a tax lien.

  • November 25, 2014

    Atlantic City's $22M Tax Sale Deal With Trump Casinos OK'd

    A Delaware bankruptcy judge on Tuesday signed off on a deal between Atlantic City and Trump Entertainment Resorts Inc. to auction off tax certificates for $22 million the city claims it is owed, but allows the casino operator to appeal the amounts for the past year.

  • November 25, 2014

    Ampal CEO's Suit Says Bondholder Defamation Sunk Company

    The CEO of bankrupt energy investment holding company Ampal-American Israel Corp. sued bondholders in New York bankruptcy court on Monday claiming their "immoral, unconscionable conduct" in defaming the company and its leaders stalled a key ethanol project and drove the company toward insolvency.

  • November 25, 2014

    Judge Rips Into Attys In Solyndra Price-Fixing Docs Spat

    A California federal magistrate judge on Tuesday chided attorneys in a price-fixing feud between bankrupt Solyndra LLC and a trio of Chinese solar-panel companies, calling their demand for Solyndra's financial files a “blunderbuss request” and accusing Solyndra of obscuring details on the files it has.

  • November 25, 2014

    Blank Rome Snags Clifford Chance Restructuring Partner

    Blank Rome LLP has hired a former Clifford Chance LLP partner with more than 20 years of bankruptcy experience, including representing creditors of a defunct baseball team and helping negotiate Sharia-compliant debt financing, to work in the firm's New York office.

  • November 25, 2014

    EFH Seeks Bankruptcy Court Approval For $80M In Bonuses

    Energy Future Holdings Corp. asked the Delaware bankruptcy court on Saturday to approve more than $80 million for employee bonuses in 2015, including compensation for top brass that could exceed $12.3 million under a plan “substantially similar” to a previous one approved in October over objections from the U.S. Trustee's Office.

  • November 25, 2014

    Falcone Steps Down As Harbinger Group's CEO, Chairman

    Billionaire hedge fund manager Philip Falcone is resigning as Harbinger Group Inc.’s chairman and CEO, the company said Monday, capping off a bumpy year that saw Falcone battle over LightSquared Inc.’s bankruptcy and bounce back from a fraud probe by U.S. regulators.

  • November 24, 2014

    Longview Gets Wins On 3 Bankruptcy Appeals

    A Delaware federal judge handed Longview Power LLC a trio of victories Monday, affirming the bankruptcy court's related decisions to approve a settlement reducing $360 million in mechanic’s liens, to stay a California lawsuit over $800 million in insurance, and to keep that fight within the Chapter 11 case.

  • November 24, 2014

    NII Floats Ch. 11 Deal With Aurelius-Led Bondholders

    NII Holdings Inc. emerged from closed-door negotiations Monday with an agreement on a restructuring scheme supported by one of two competing bondholder factions that would relieve the bankrupt Nextel-brand wireless provider of $4.35 billion in debt.

  • November 24, 2014

    MF Global Execs Seek To Tap $7.5M More In E&O Coverage

    Executives of bankrupt MF Global Inc. asked a New York bankruptcy judge Friday to give them access to an additional $7.5 million worth of errors and omissions insurance coverage for legal bills from lawsuits connected to their involvement in the company’s downfall.

  • November 24, 2014

    Trump Resorts May Get DIP From Icahn In Bid To Avoid Ch. 7

    Trump Entertainment Resorts Inc. told a Delaware bankruptcy judge Monday that senior lender companies controlled by Carl Icahn have agreed to extend debtor-in-possession financing and that it has proposed to restore union workers' health benefits in an effort to keep its last casino open and avoid spiraling into Chapter 7.

  • November 24, 2014

    Fairfield Tries To Preserve Challenge Of $230M Madoff Sale

    The liquidator for an offshore Bernard L. Madoff feeder fund on Friday urged the Second Circuit not to revisit its decision allowing a challenge to the sale of a $230 million claim against the Ponzi schemer’s defunct firm, saying a lower court has already rejected arguments to the contrary.

  • November 24, 2014

    Ex-Arena Football Team Owner Faces Fraud Charges

    Federal prosecutors on Monday slapped the former owner of the folded Chicago Rush Arena Football League team with bankruptcy and wire fraud charges, alleging he attempted to hide assets from creditors and exaggerated his net worth in order to buy the team last year.

  • November 24, 2014

    Momentive Creditors Slam Mootness Claims In Ch. 11 Appeal

    Senior and subordinated creditors of private-equity backed Momentive Performance Materials Inc. urged a New York bankruptcy judge Friday not to deem their appeals from Momentive’s Chapter 11 plan equitably moot, arguing that sustaining their claims would not unravel the company’s reorganization.

  • November 24, 2014

    Aereo Plans To Shop Infringing Streaming IP In Ch. 11

    Aereo Inc.’s television streaming technology could fetch a substantial price in a bankruptcy auction despite having been ruled by the U.S. Supreme Court to violate the copyrights of broadcasters, an attorney for the shuttered startup said Monday.

  • November 24, 2014

    Top Caesars Noteholders Cry Default On Asset Sales

    Troubled casino operator Caesars Entertainment Corp. on Monday revealed it received a default notice Friday from senior bondholders owed $1.25 billion from its main operating unit, news that follows Caesars' recent disclosure that it was considering converting the unit into a real estate investment trust in order to restructure debt.

  • November 21, 2014

    Aereo's Gone, But Internet TV Is Here To Stay

    Aereo Inc. ended its three-year copyright battle with a bankruptcy filing, but the trend that the streaming startup so publicly represented — the increasing popularity of novel, Internet-based services for access to video content — isn't going anywhere.

  • November 21, 2014

    Phoenix Seeks To Cap $10M Software Claim At $500K

    Phoenix Payment Systems Inc. told a Delaware bankruptcy judge Thursday that a $10 million claim lodged by a rival card transaction company over old software code should be capped at $500,000, saying it should not be forced to set aside the full sum while litigation plays out.

Expert Analysis

  • Shoulda Put A Lien On It — 4 Advantages Of Security

    James C. Behrens

    Secured creditors, while never thrilled to learn about a borrower’s bankruptcy, can at least take solace in the fact that they will retain their interest in their collateral, even if this interest may be subject to a trustee’s surcharge, says James Behrens of Greenberg Glusker Fields Claman & Machtinger LLP.

  • What Municipal Bond Investors Can Learn From Detroit

    Mark N. Berman

    It is interesting to observe that on the eve of confirmation of Detroit’s Chapter 9 plan, the city settled its disputes with certain bond insurers by giving them rights to certain real estate that, prior to the settlement, had not been part of the proposed plan. This begs the question as to how much additional property the city may have had available, and whether this property could have been used to increase unsecured creditors' r... (continued)

  • Remembering Doar: Justice As A 4-Letter Word

    Kevin J. Curnin

    John Doar ran the U.S. Justice Department's Civil Rights Division at perhaps the most chaotic and pivotal time in its history. His passing earlier this month is an occasion for lawyers everywhere to marvel at just how impactful one attorney can be. He didn’t just preside at a historic time, he calmly and coolly shaped it, says Kevin Curnin of the Association of Pro Bono Counsel.

  • Free Trade, Comity And The Bankruptcy Code

    Debora Hoehne

    The free movement of goods, services, people and capital across territorial boundaries seems to be fertile ground for litigation regarding the enforcement of foreign judgments, as in the case of Elcoteq Inc., where the U.S. Bankruptcy Court for the Northern District of Texas tackled issues of comity and the extraterritorial reach of the automatic stay, says Debora Hoehne of Weil Gotshal & Manges LLP.

  • Differentiate Your Litigation Practice With Data Security

    Jennifer Topper

    Despite the significant tilt toward technology in how litigation is now conducted, many senior lawyers still delegate tech-related issues to e-discovery specialists or associates at their firms. This is a missed opportunity not just for client development, but also for shaping the way the firm and lawyer are seen in the eyes of corporate counsel, says legal industry business development specialist Jenn Topper.

  • Do Lawyers Enjoy Immunity In Drafting Orders For Judges?

    Matthew J. O’Hara

    Not only does the Ninth Circuit decision in Burton v. Infinity Capital Management create a circuit split, but it also exposes lawyers who act at the direction of judges to potential liability — and thereby has the potential of undermining what is ordinarily an orderly process to assist in the administration of the judicial system, says Matthew O’Hara, co-leader of Hinshaw & Culbertson LLP's lawyers professional liability practice group.

  • Chipping Away At WaMu's Rigid Exculpation Ruling

    Edmon L. Morton

    Recently, in the Laboratory Partners Inc. and Fisker Automotive Holdings Inc. Chapter 11 cases, Washington Mutual’s ruling on the exculpation of nonestate fiduciaries has come into question, and some Delaware bankruptcy judges appear to be departing from the rigid bar in favor of a more flexible standard, say attorneys with Young Conaway Stargatt & Taylor LLP.

  • Stay Violations And 'The Computer Did It' Defense

    Doron Kenter

    Bankrupt Wedco Manufacturing Inc. may have been within its rights to assert automatic stay violation claims against one of its creditors as a result of the creditor's computer error, but the bankruptcy court may ultimately decide that any damages suffered by Wedco — in the form of time spent by counsel on the contempt motion — were entirely of its own doing, says Doron Kenter of Weil Gotshal & Manges LLP.

  • The Print Room: How To Spend Less And Get More

    Senthil Rajakrishnan

    Our estimates indicate that some law firms spend up to $8,000 per attorney each year on print-related costs. Although we live in a digital world, hard copy printing will remain an important part of business for years to come. Changing technology, however, offers opportunities to improve efficiencies and save money, say Senthil Rajakrishnan and Ryan Mittman of HBR Consulting LLC.

  • 9th Circ. Limits Twombly, Iqbal Pleading Standards

    Steven Wilamowsky

    In addition to establishing limits on the equitable mootness doctrine in bankruptcy, the Ninth Circuit’s Mortgages Ltd. decision last week confirms that the tightened federal pleading standards ushered in by Twombly and Iqbal do not give courts license to summarily disregard a party’s factual allegations at the pleading stage simply because they choose not to believe those allegations, say Steven Wilamowsky and Alix Brozman of Bing... (continued)