Bankruptcy

  • August 3, 2015

    Baha Mar Judge Agrees To Consider Bid To Scrap Ch. 11

    A Delaware bankruptcy judge said Monday he would weigh requests later this month by the Chinese export-import bank and a state-owned construction company to scrap the unfinished $3.5 billion Baha Mar resort's Chapter 11 case in favor of a parallel proceeding in the Bahamas.

  • August 3, 2015

    Calif. Says Ch. 11 No Bar To Corinthian Disciplinary Action

    The California Department of Consumer Affairs pushed the Delaware bankruptcy court Friday to find that its disciplinary action against Corinthian Colleges Inc. isn't barred by the for-profit educator's Chapter 11 filing, joining several state agencies seeking a definitive ruling on whether their enforcement actions can go forward.

  • August 3, 2015

    Idaho Gold Miner Premium Exploration Lands In Ch. 11

    Gold mining operation Premium Exploration USA Inc. filed for Chapter 11 on Friday in Idaho, becoming the latest U.S.-based mining operation in recent months to seek bankruptcy protection.

  • August 3, 2015

    Ky. Improperly Charged Fuel Co. For Excise Tax: 7th Circ.

    A bankrupt regional gas distributor was improperly charged a Kentucky excise tax on gasoline that was destined for out-of-state final purchasers, the Seventh Circuit ruled Friday, concluding that the company had borne the tax through extra fees paid to its upstream suppliers.

  • August 3, 2015

    Alpha Files For Bankruptcy With $7.1B In Debt

    Alpha Natural Resources on Monday became the latest coal producer to file for bankruptcy, less than five years after its $8.5 billion purchase of Massey Energy Co., whose former leader is now facing criminal charges over safety violations that federal prosecutors say caused a 29-death explosion.

  • July 31, 2015

    Bahamanian Judge Delays $3.5B Baha Mar Liquidator Hearing

    A Bahamanian judge on Friday stalled a key hearing for the unfinished $3.5 billion Baha Mar resort, granting the government until Aug. 19 to name a new liquidator to handle the beleaguered resort’s restructuring after its original candidate, PricewaterhouseCoopers, was nixed over a conflict of interest.

  • July 31, 2015

    Upstream-Downstream Tiff Over Bankrupt Oil Middleman Ends

    Oil producers who sold to middleman SemCrude LP before its bankruptcy do not have a right to recover money from a purchaser downstream of SemCrude who allegedly shielded itself from the company's troubles by taking unfair advantage of the upstream producers' credit agreements, a Delaware federal judge said Thursday.

  • July 31, 2015

    Tribe Urges High Court To Pass On Ex-Contractor's Suit

    California's Santa Ynez Band of Chumash Indians has asked the U.S. Supreme Court to pass on reviewing a former contractor's sanctions bid against the tribe, arguing that a bankruptcy court's denial of the motion had nothing to do with tribal sovereign immunity.

  • July 31, 2015

    Unsecured Creditors Push Boomerang To Nix Ch. 11 Plan Pact

    The unsecured creditors committee in the Boomerang Tube LLC case took aim Friday at the Chapter 11 plan support agreement the oil and gas piping manufacturer entered bankruptcy with, arguing that it is no longer needed and would stop the debtor from following the court’s instructions to consider alternatives.

  • July 31, 2015

    Legacy Wants $213M Madoff Trustee Suit Dismantled

    Legacy Capital Ltd. urged a New York bankruptcy judge Thursday to gut a trustee's suit seeking to claw back more than $213 million in transfers it received from Bernard Madoff’s fraudulent investment fund, saying it had no knowledge of his colossal Ponzi scheme.

  • July 31, 2015

    Judge Skeptical Of "Aggressive" Relativity Media Sale Plan

    A New York bankruptcy judge indicated Friday that he was not on board with Relativity Media LLC's plan to sell off its film and television production businesses in just two months, but approved $9.5 million in stopgap funding to keep the company going.

  • July 31, 2015

    Bryan Cave Hit With Malpractice Claim Over Hotel Loan

    A suit filed in Dallas state court alleges Bryan Cave LLP flubbed the financing of a hotel renovation loan, then doubled down on mistakes in a bankruptcy proceeding arising from the loan, leading to a $17 million loss for the lender on top of allegedly excessive legal fees.

  • July 31, 2015

    'Housewives' Star Shifts Suit Against Bankruptcy Atty To NJ

    An incarcerated star of "The Real Housewives of New Jersey" has relaunched a malpractice suit against her former bankruptcy attorney in the Garden State, contending in a beefed-up complaint that his alleged mishandling of her Chapter 7 case with her husband exposed her to criminal charges and prison.

  • July 31, 2015

    CAT Wants Equipment Back From Defunct Miner Allied Nevada

    Caterpillar Financial Services Corp. asked a Delaware bankruptcy judge Thursday to lift the automatic stay on Chapter 11 debtor Allied Nevada Gold Corp., which owes nearly $66.5 million for “massive” shovels and other equipment at its recently shuttered mine.

  • July 31, 2015

    EFH Gets OK To Set December Deadline For Asbestos Claims

    A Delaware bankruptcy judge Thursday allowed Energy Future Holdings Corp. to set a Dec. 14 bar date for asbestos-related injury claims, which some unsecured creditors had called “ill-advised,” and approved a noticing campaign that includes direct mail, newspapers and the Internet and incorporates some of the revisions objectors advocated.

  • July 31, 2015

    Troubled UK Oil Producer Heads Into Administration

    London-based oil production and exploration company Afren PLC said Friday it will go into administration after failing to come up with a debt restructuring deal, saying project delays and a slump in the company's production created short-term liquidity problems.

  • July 31, 2015

    Simpson Thacher, JPMorgan Sued Over $1.5 Billion GM Loan

    JPMorgan Chase Bank NA and Simpson Thacher & Bartlett LLP have been slapped with a pair of suits by putative classes of more than 400 lenders in New York federal court, claiming they negligently authorized the termination of security interest in a $1.5 billion bankruptcy loan to General Motors LLC.

  • July 30, 2015

    Walnut Creek Continues Fight Against Optim's Ch. 11 Plan

    Walnut Creek Mining Co. announced Wednesday it would appeal Optim Energy LLC's recently confirmed Chapter 11 plan and urged a Delaware bankruptcy judge to put the power plant operator's restructuring on hold while it takes its challenge up the legal ladder.

  • July 30, 2015

    Life Partners Creditors Deride CEO's Call To Pull Trustee

    The unsecured creditors of life insurance purchaser Life Partners Holdings Inc. told a Texas bankruptcy court on Thursday that its CEO, Brian Pardo, shouldn't be allowed to force out the Chapter 11 trustee working on the case.

  • July 30, 2015

    Bankrupt Deb Stores Launches $10M Clawback Campaign

    The Deb Stores Holding LLC bankruptcy estate launched dozens of so-called avoidance actions on Wednesday, looking to claw back nearly $10 million in payments that the women's clothing retailer made shortly before it filed for Chapter 11 protection in December.

Expert Analysis

  • Will 3rd Circ. Be Next To Ban ‘Equitable Mootness’?

    Bruce D. Buechler

    Amid various circuits' movement away from the equitable mootness doctrine, a recent decision in the Chapter 11 case of One2One Communications LLC cries out for the Third Circuit to reconsider the equitable mootness portion of Continental Airlines en banc, say Bruce Buechler and Cassandra Porter of Lowenstein Sandler LLP.

  • 7 Keys To Improving Your Direct Examination

    James Murray

    Trial lawyers should approach direct examination with the same excitement as cross-examination. If you do not, the jury will notice and your case will suffer. An effective direct examination backs the lawyer out of the action and puts the witness front and center to tell the story in a conversational, comforting, interesting fashion, says James Murray of Dickstein Shapiro LLP.

  • Lessons From 5th Circ. Application Of Scienter Standard

    David Dodds

    The Fifth Circuit’s recent dismissal of a federal securities fraud class action that arose out of the failure of Guaranty Bank serves as a reminder that even where some specific allegations tend to support an inference of scienter, they may not invariably lead to a finding of the required “strong inference,” says David Dodds of Haynes and Boone LLP.

  • 7th Circ. Empowers In Pari Delicto Defense In Bankruptcy

    Lisa M. Schweitzer

    A recent Seventh Circuit decision in a case related to Tom Petters' Ponzi scheme establishes the viability of in pari delicto as a defense potentially available to pre-bankruptcy advisers to a debtor, even in cases where the claims against the outside professionals go beyond an alleged failure to discover misconduct, say Lisa Schweitzer and Grace Kurland of Cleary Gottlieb Steen & Hamilton LLP.

  • Mid-2015 Restructuring Review: Europe And Emerging Markets

    Stephen Phillips

    Opportunities for distressed debt funds to buy attractively priced distressed corporate assets have been few and far between in recent terms, but do not expect activity levels to be quiet forever. One market that funds have been eyeing closely is Italy, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • Vote More Than Once? Numerosity And Possible Reform

    Craig M. Price

    While current law indicates that claims of affiliated lenders may be treated as separate to the extent documented by different proofs of claim, allowing affiliates to count as different creditors for numerosity purposes in bankruptcy, change may be ahead, say attorneys with Chapman and Cutler LLP.

  • 2nd Circ. Cites Creditor Risks In Involuntary Bankruptcy

    Michael L. Cook

    Creditors are often tempted to file an involuntary bankruptcy petition against their debtor as a way to compel the payment of a debt. But as a recent Second Circuit affirmation in the TPG Troy LLC case shows, the involuntary bankruptcy petition is not just another collection device, says Michael Cook of Schulte Roth & Zabel LLP.

  • Will Congress Bar College Tuition Clawback In Bankruptcy?

    Lynne B. Xerras

    An increasing number of colleges and universities find themselves defending litigation initiated by Chapter 7 trustees administering bankruptcy cases of the parents of past or present students. One congressman is seeking to reverse this trend, says Lynne Xerras of Holland & Knight LLP.

  • The Precedential Value Of Sagamore Partners

    Steven Wilamowsky

    The Eleventh Circuit, in the case of hotel owner Sagamore Partners, expressly rejected the notion that under Florida and federal bankruptcy law, late fees and default interest are somehow inconsistent remedies. The case also reflects an increasing reluctance on the part of appellate courts to dismiss appeals of consummated, confirmed plans, say Steven Wilamowsky and Laura Appleby of Chapman and Cutler LLP.

  • Hedging Western European Debt With CDS? Not So Fast

    Ryan Michael Wilson

    After the financial crisis, governments are acutely aware of the potential domino effect of triggering a credit event, and they are desperate — and able — to avoid doing so. Credit default swaps may therefore be of diminishing utility as a hedging tool, says Ryan Michael Wilson of Lowenstein Sandler LLP.