Bankruptcy RSS

  • April 15, 2014

    Ind. Limestone Goes With PE Firm's $26M Stalking Horse Bid

    Bankrupt quarrier Victor Oolitic Stone Co., which does business as Indiana Limestone Co., canceled the scheduled Chapter 11 auction and is set to go with the $26 million stalking horse offer from a unit of private equity firm Wynnchurch Capital, an attorney for the debtor said Tuesday.

  • April 15, 2014

    Oak Rock Investors Accuse Auditor Of Missing $100M Fraud

    Two investors in Oak Rock Financial LLC slapped the auditor of the bankrupt lending company with a suit in New York court Friday over failing to detect a four-year fraud that resulted in more than $100 million in losses.

  • April 15, 2014

    The Great Persuader: 7th Circ. Chief Judge Diane Wood

    Seventh Circuit Chief Judge Diane Wood talks to Law360 about managing a court in crisis, surviving two U.S. Supreme Court near-misses, and tailoring crafty dissenting opinions that can change the mind of even the staunchest of ideological opponents.

  • April 15, 2014

    Telecom Co. TelexFree Hits Ch. 11 Blaming Compensation Plan

    Telecommunications and marketing company TelexFree Ltd. on Monday sought bankruptcy protection in Nevada, blaming a compensation plan for associates that has sucked the company’s liquidity dry.

  • April 15, 2014

    Former Execs Of Defunct Antioch Lose Bonus Protection Bid

    An Ohio federal judge on Monday refused to block an attempted clawback of bonuses earned by three former executives of bankrupt Antioch Co., finding there to be a disputed issue of fact as to whether the company was insolvent when the bonuses were awarded.

  • April 15, 2014

    Energy Future Misses Key Deadline Amid Restructuring Talks

    Energy Future Holdings Corp., the Dallas-based utility company at the center of bankruptcy rumors for several weeks, announced Tuesday that it would miss its deadline to file an annual financial report and that it is still discussing debt restructuring options with creditors.

  • April 15, 2014

    Detroit Deal Will Cut Pension Hikes For Ex-Cops, Firefighters

    The city of Detroit has reached an agreement with the organized labor group representing its retired police and firefighters that will trim annual cost-of-living increases to the retirees but spare their current pensions from any cuts, a mediator said Tuesday.

  • April 15, 2014

    Ex-Madoff Aides Seek Acquittal After Jury's Guilty Verdict

    Former Bernie Madoff associates, whom a jury found guilty of aiding the $65 billion Ponzi scheme, asked a New York federal court Tuesday to acquit them, saying there wasn't enough evidence to show criminal knowledge or intent to participate in any crime.

  • April 15, 2014

    Global Geophysical Nabs $152M Ch. 11 Financing Deal

    Global Geophysical Services Inc. on Monday announced a settlement that brokers peace between two warring groups of lenders and will provide the seismic data provider with $151.8 million in bankruptcy financing.

  • April 15, 2014

    Rising Star: Davis Polk's Damian Schaible

    At just 37, Damian Schaible of Davis Polk & Wardwell LLP has built a resume that would be the envy of lawyers twice his age, piloting major airlines through Chapter 11 restructurings and helping Wall Street giants craft “living wills” after the financial crisis — work that earns him a spot on Law360's list of rising legal stars.

  • April 14, 2014

    Ex-DBSI Execs Guilty Of Fraud In Ponzi Scheme, Jury Finds

    An Idaho federal jury on Monday found the former top brass of bankrupt real estate firm DBSI Inc. guilty on dozens of fraud charges, following accusations they were running a Ponzi scheme under the guise of an investment company supposedly worth $105 million.

  • April 14, 2014

    Bankrupt Edgenet Lands Parallax Unit As Stalking Horse

    Private equity-owned data technology company Edgenet Inc. asked the Delaware bankruptcy court Friday to approve an auction plan for a portion of its assets, with a unit of Parallax Capital Partners LLC putting in a stalking horse bid of $6.5 million plus certain assumed liabilities.

  • April 14, 2014

    Fisker To Dole Out $28M From Sale Proceeds

    Bankrupt electric-car maker Fisker Automotive Holdings Inc. reached an agreement to pay creditor Hybrid Tech Holdings LLC and other secured lenders $8 million to cover administrative claims and to put another $20 million into a liquidating trust, according to a Friday filing in Delaware bankruptcy court.

  • April 14, 2014

    Rising Stars: Cleary Gottlieb's Luke Barefoot

    At just 35, Cleary Gottlieb Steen & Hamilton LLP's Luke Barefoot has already advised on various complex bankruptcies and restructurings, including the Overseas Shipholding Group Inc. case in which Barefoot helped get a U.S. Chapter 11 proceeding recognized in South African courts for the first time, cementing his spot on Law360's list of top young bankruptcy attorneys.

  • April 14, 2014

    Apollo’s MPM Seeks $3B Debt Cut Through Ch. 11

    Momentive Performance Materials Inc., a silicone and quartz producer controlled by private equity firm Apollo Global Management LLC, on Sunday filed for bankruptcy protection in New York, with a prenegotiated plan to cut its debt by $3 billion.

  • April 14, 2014

    Coldwater Creek Gets Green Light For Quick Liquidation Prep

    A Delaware bankruptcy judge gave women’s clothing retailer Coldwater Creek Inc. the interim OK on Monday for up to $75 million in post-petition financing, and the green light to make speedy preparations for its plan to liquidate its inventory in going-out-of-business sales to start before Mother's Day.

  • April 14, 2014

    ResCap, GMAC Agree To Pay $2M To End Wage Class Action

    GMAC Mortgage LLC and bankrupt Residential Capital LLC have agreed to pay $2 million to settle a wage-and-hour class action alleging they stiffed workers on proper meal and rest breaks in violation of the Fair Labor Standards Act, according to documents filed in Washington federal court.

  • April 11, 2014

    Rising Star: Bilzin Sumberg's Jeffrey Snyder

    Whether winding down a managed care provider in receivership or successfully defending a nightclub operator from a $5 million clawback suit, Jeffrey Snyder has shown himself a dab hand at insolvency issues, earning the Bilzin Sumberg Baena Price & Axelrod LLP partner a place among eight young bankruptcy attorneys recognized by Law360.

  • April 11, 2014

    Simplexity Gets OK For DIP Loan To Fund Wal-Mart Sale

    A Delaware bankruptcy judge on Friday approved debtor-in-possession financing that private-equity owned mobile phone activator Simplexity LLC says is crucial to fund its planned $10 million stalking horse sale to Wal-Mart Stores Inc., despite objections from unsecured creditors that say the facility solely protects lender Fifth Third Bank.

  • April 11, 2014

    1st Circ. Reinstates W Boston Hotel Developers' Ch. 11 Plan

    The First Circuit on Friday reinstated a bankruptcy court order confirming the Chapter 11 reorganization plan of the developers of the luxury W Boston Hotel, rejecting the Mortgage Bankers Association's claims that the confirmation should remain vacated based on an interest calculation error.

Expert Analysis

  • Beware 'Jewel' Risks In Lateral Partner Hiring

    Pamela Phillips

    Jewel litigation has been filed after every major law firm bankruptcy in the past 10 years, including Lyon & Lyon, Brobeck, Coudert, Thelen, Heller and Howrey. These lawsuits have produced years of litigation, with similar suits expected in the Dewey bankruptcy. Despite the legal uncertainties surrounding such claims, hiring firms can take steps now to minimize their Jewel risk for any lateral hire, say attorneys with Arnold & Porter LLP.

  • Heartbleed Rains On The Legal Cloud Parade

    David Houlihan

    While the actual breaches are unknown, Heartbleed has the potential to expose all of a lawyer's files stored or transmitted online. The bug raises professional responsibility questions and offers confirmation of the greatest anxieties that the legal industry has about online practice. In fact, the timing is poor for many legal tech providers, following a general industry warming to cloud offerings, says David Houlihan of Blue Hill Research Inc.

  • The 363 Vs. 365 Battle Will Continue

    Kate Doorley

    The outcome of any conflict between Sections 363 and 365 of the Bankruptcy Code would likely turn on the approach adopted by the bankruptcy court. Although in the Spanish Peaks Holdings II matter the court appeared to side with cases holding that Section 363 trumps 365, the facts were unique enough that most courts applying a similar fact-intensive framework might decide that the 365 rights of a lessee or a licensee should be preserved instead, says Kate Doorley of Weil Gotshal & Manges LLP.

  • Recent Trend To Expand ERISA Liability Grows

    Neal S. Schelberg

    In a distinct trend, federal courts have found that, depending on the text of the underlying plan documents, unpaid employer contributions due under a collective bargaining agreement may be viewed as plan assets, such that the representatives of an employer who exercise fiduciary control over those plan assets can be held individually liable for the unpaid amounts — together with interest and penalties — under the Employee Retirement Income Security Act, say Neal Schelberg and Aaron Feuer of Proskauer Rose LLP.

  • Keep Your Audience From Checking Email: 5 Legal Talk Tips

    Michael H. Rubin

    Why do the majority of speakers get polite claps at the end of their talks while a few select others receive rousing applause? Having given more than 375 presentations to legal groups, bar associations, Fortune 500 companies and corporate gatherings, I’ve learned a few things about what not to do. Remember, great speakers don’t tell “war stories.” They don’t even give examples from their own practice, says Michael Rubin of McGlinchey Stafford PLLC.

  • Priorities Change When An Investment Firm Goes Belly Up

    Stephen Bedell

    A Seventh Circuit opinion in a dispute related to the Sentinel Management Group bankruptcy reinforces the importance of the portability of investment accounts carrying commodity customer funds, and recognizes the choice made by Congress to prioritize the stability of the financial markets ahead of other creditors when an investment firm becomes insolvent, say attorneys with Foley & Lardner LLP.

  • A Close Look At The Different Forms Of Exit Financing

    Excerpt from Lexis Practice Advisor
    Paul J. Keenan Jr.

    Many debtors feel that they are at the mercy of the credit markets when it comes to negotiating an exit facility. However, with proper foresight and planning, a debtor can substantially improve its prospects for obtaining successful exit financing. Whenever possible, a corporate borrower should begin working with its restructuring advisers even before entering Chapter 11, say Paul Keenan Jr. and Nancy Mitchell of Greenberg Traurig LLP.

  • Cash Collateral Orders Revisited Following ResCap

    Todd M. Goren

    A canvass of approved consensual cash collateral orders in recent large bankruptcy cases, including In re Residential Capital LLC, suggests the rarity, even nonexistence, of preordained methodologies for valuing collateral for the purpose of calculating an adequate protection claim, say attorneys with Morrison & Foerster LLP.

  • A Settling Party's Cross-Claim Shield In Bankruptcy Cases

    Barry V. Freeman

    Multiple defendants are frequently jointly sued in avoidance actions, and there is no federal statutory provision that insulates a settling defendant from indemnity and contribution claims from co-defendants. But incorporating the California Code of Civil Procedure’s Section 877.6 into the case might do the trick, says Barry Freeman of Jeffer Mangels Butler & Mitchell LLP.

  • Pros And Cons Of Trial Presentation Software Programs

    David Russell

    The last thing lawyers want to worry about is fumbling with trial exhibits once they get to the courtroom. Luckily, there are a wide variety of options for using technology to facilitate trial presentation. Each has benefits and drawbacks, but the most important thing is finding software that the trial lawyer is comfortable and confident running, say David Russell and Jeffrey Atteberry of Jenner & Block LLP.