Bankruptcy

  • September 2, 2015

    Baker & McKenzie Adds 2 Compliance Attorneys In DC

    Baker & McKenzie LLP announced the addition of two experienced attorneys who bring decades of experience in corporate and regulatory law to its growing litigation and government enforcement practice as partners in Washington, D.C.

  • September 2, 2015

    Fees Brawl Erupts After BNY Unit Beats $460M Refco Row

    After a jury cleared a Bank of New York Mellon Corp. hedge fund administration subsidiary and its CEO of a $460 million suit over alleged deceptive accounting following disgraced brokerage firm Refco LLC's implosion, the parties this week sparred over the defendants' attorneys' fees bid.

  • September 2, 2015

    Variant Urges Court Not To Toss Suit Against Ex-CEO

    Variant Holding Co. LLC urged the Delaware bankruptcy court Tuesday not to throw out the adversary action it lodged against its ex-CEO accusing him of interfering with its real estate portfolio sale, arguing that tens of millions of dollars and its prospect of reorganization are at stake.

  • September 2, 2015

    DBSI Trustee Wins $18.6M Judgment Against Ex-CEO

    The liquidating trustee for DBSI Inc. has been awarded an $18.6 million default judgment against the defunct real estate firm's former chief Douglas Swenson, who is currently serving a 20-year prison sentence for defrauding the company's investors, according to court documents filed Tuesday in Idaho.

  • September 2, 2015

    Examiner To Dig Into Cab Co. Sunk By Atty Accident

    Nearly six months after an injured attorney’s $26 million jury verdict crashed Yellow Cab Affiliates Inc., a deal hammered out Wednesday between the company and its creditors committee will see an examiner appointed to investigate the finances of the bankrupt Chicago taxi service.

  • September 2, 2015

    Trustee Blasts Kutak Rock's Bid To Exit $10M Row

    Brooke Corp.’s bankruptcy trustee slammed Kutak Rock LLP’s bid to dodge his $10 million malpractice suit accusing the firm of helping conceal its financial troubles, telling a Kansas federal court that he has proof that the firm’s failure to properly advise the insurance agency franchiser caused more than $173 million in damages.

  • September 2, 2015

    Columbia House Can't Put Liens On DVDs, Universal Says

    Universal Studios' home video distribution unit is objecting to the financing plan of Columbia House's parent that would grant the bankrupt DVD mail-order service's lenders liens on Universal DVDs and Blu-Rays it licensed to the debtor, according to court documents filed Tuesday in New York.

  • September 2, 2015

    Doc's Trustee Slams Dismissal Bid In Atty Malpractice Suit

    The bankruptcy trustee for Geoffrey Edelsten on Tuesday hit back at a motion to dismiss a suit against the disgraced Australian ex-doctors’ former attorneys and their former firm for alleged negligent counsel, saying the attorneys should be held accountable on individual claims because the existence of a binding contract was alleged.

  • September 2, 2015

    USA Discounters' Unsecured Creditors Hire Kelley Drye

    Kelley Drye & Warren LLP has been selected to advise the unsecured creditors' committee in the recent bankruptcy of jewelry and appliance retailer USA Discounters Ltd., the firm said Wednesday.

  • September 2, 2015

    CFTC Seeks Lifetime Ban, $2.5M Penalty For Ex-Sentinel CEO

    The U.S. Commodity Futures Trading Commission on Wednesday asked a federal judge to permanently ban former Sentinel Management Group Inc. CEO Eric A. Bloom from the industry even as Bloom appeals a 2014 criminal conviction for running a scheme that ultimately cost investors $665 million.

  • September 2, 2015

    Puerto Rico Utility Strikes Debt Deal With Bondholder Group

    Puerto Rico's public power utility announced on Wednesday that it has reached a deal with a bondholders group to trim $670 million in debt by exchanging new notes for outstanding bonds, the first agreement the utility has reached with a significant group of financial stakeholders.

  • September 2, 2015

    Cohen Seglias Sues Stern & Eisenberg Over Failed Ch. 7 Bid

    Cohen Seglias Pallas Greenhall & Furman PC has sued Stern & Eisenberg PC in Pennsylvania state court, accusing the firm and a name partner of botching an involuntary bankruptcy proceeding and leaving it on the hook for $126,000 in attorneys’ fees and costs.

  • September 2, 2015

    Boomerang Creditors Get OK To Keep Analyst's Identity Secret

    A Delaware bankruptcy judge on Wednesday cleared the creditors committee in Boomerang Tube LLC's Chapter 11 case to hire a consultant on a confidential basis to analyze how general unsecured creditors would fare under the oil and gas pipe maker's proposed reorganization plan.

  • September 1, 2015

    Physiotherapy Trust Hits Ex-Owners With $250M Fraud Suit

    The litigation trust created by Physiotherapy Holdings Inc.'s Chapter 11 plan launched a lawsuit Tuesday accusing the company's former private equity owners of faking the physical therapy chain's financials in order to sell it in a leveraged buyout while pocketing an extra $250 million and leaving the debtor insolvent.

  • September 1, 2015

    Caesars Examiner Questions Duplicative, Pricey Firm Fees

    Law firms' spring 2015 fees in the contentious bankruptcy of Caesars Entertainment Operating Co. raised serious concerns with an independent examiner, who said Monday the original bills of Kirkland & Ellis LLP, Jones Day, Winston & Strawn LLP, DLA Piper and others were often duplicative, overused the most expensive attorneys and included vague travel expenses.

  • September 1, 2015

    Gaming Co. Calls Bad Faith Claim Over $125M Deal Untimely

    A Chickasaw Nation-backed gaming company held fast to its assertion that casino owner Legends Gaming LLC had introduced a bad faith claim too late during proceedings in a suit over a failed $125 million asset purchase, telling a Louisiana federal court Monday that the deadline for such claims had passed long ago.

  • September 1, 2015

    Dentons Launches Greek Desk In Brussels

    Dentons has launched a Greek desk in the firm's Brussels office, which will act as a one-stop shop for its clients already active in the Greek market, as well as those considering entering it for the first time.

  • September 1, 2015

    Kan. Judge Appointed Head Of 10th Circ. Bankruptcy Panel

    U.S. Bankruptcy Judge Janice Miller Karlin, who has served as a bankruptcy judge in Kansas since 2002, has been appointed the new chief judge of the Tenth Circuit's bankruptcy appeals panel, the court announced Monday.

  • September 1, 2015

    Judge Won't Convert Cache Bankruptcy To Ch. 7 Yet

    A Delaware bankruptcy judge declined Tuesday to convert defunct clothier Cache Inc.'s case to a Chapter 7 over accusations it left more than 800 ex-employees potentially on the hook for medical bills by not transferring paycheck withdrawals to the insurer, but said she would revisit the issue in October.

  • September 1, 2015

    McGuireWoods Nabs Cadwalader Bankruptcy Expert

    McGuireWoods LLP has hired a former Cadwalader Wickersham & Taft LLP bankruptcy expert as a partner for its restructuring and insolvency practice in Washington, D.C., and New York.

Expert Analysis

  • The Baker Botts V. Asarco Fallout Has Begun

    Jeffrey S. Sabin

    The U.S. Supreme Court decision this year in Baker Botts LLP v. Asarco LLC may pressure bankruptcy courts to respond to sophisticated attorneys' likely efforts to seek engagement letters expressly providing for costs related to defending fee applications. Indeed, there have been at least two challenges to the retention terms of creditors committee professionals within two months of the decision, says Jeffrey Sabin of Venable LLP.

  • How To Prosecute Contempt Proceedings In Bankruptcy

    Lewis M. Killian

    It has been common for many debtors’ attorneys to file an adversary proceeding against a creditor seeking damages for violation of a discharge injunction. Others file a motion for contempt and the matter proceeds as a contested matter. However, the issue of the proper form of action has not garnered a great deal of attention, says Lewis Killian Jr., of counsel at Berger Singerman LLP and former chief bankruptcy judge for the Northe... (continued)

  • Voting Disputed Claims In Ch. 11 Confirmation Proceedings

    John Hansen

    Disputed claims invoke somewhat obscure provisions of the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure that can be overlooked or lead to tactical positioning during the plan approval process. It is important for Chapter 11 practitioners to be aware of potential traps, says John Hansen of John Hansen Law.

  • Equitable Mootness May Be Alive And Well In 3rd Circ.

    Bruce D. Buechler

    In a recent Third Circuit opinion in the case of Tribune Media Co., Judge Thomas Ambro authored a concurrence that appears to imply that Third Circuit Judge Cheryl Krause’s opinion in One2One Communications LLC calling for the overturning of the equitable mootness doctrine is not shared, says Bruce Buechler of Lowenstein Sandler LLP.

  • SemCrude Bankruptcy's Many Lessons For Energy Traders

    Sherrill_Mark_Sutherland.jpg

    It is apparent that two downstream purchasers — J. Aron & Co. and BP Oil Supply Co. — employed robust risk management practices that included appropriate transaction documentation and credit risk management during their relationship with now-bankrupt SemCrude LP. Those practices certainly played a role in a recent Delaware decision favorable to the purchasers, say attorneys with Sutherland Asbill & Brennan LLP.

  • 3 Ethical Traps For 'Gladiator' Litigators

    Debra Squires-Lee

    Olivia Pope, the D.C. lawyer at the heart of the television drama "Scandal," calls herself and her team "gladiators in suits." By that, she means that she is willing to fight for her clients like a gladiator thrown into the arena. While it may be good for TV drama, thinking like a gladiator in reality can get litigators into trouble. Consider the top three ethical mistakes, say Sherin and Lodgen LLP partners Debra Squires-Lee and C... (continued)

  • Can 50 Cent Successfully Reorganize Despite Adversity?

    Heather L. Ries

    Unfortunately for 50 Cent, the filing of a Chapter 11 bankruptcy case does not automatically result in the discharge of debts by an individual debtor, and the rapper has several claims that may fall into the purview of nondischargeable debts, including litigation claims related to a sex tape scandal, says Heather Ries of Fox Rothschild LLP.

  • 10th Circ. Shields 1st-Time Payment From Preference Attack

    Michael L. Cook

    Defense to preference claims, because it uses phrases like “ordinary course of business” and “ordinary business terms,” has provided ample opportunity for litigation. In accepting a first-time transaction between parties as “ordinary course,” the Tenth Circuit in the case of C.W. Mining Co. rejected the holdings of many lower courts, says Michael Cook of Schulte Roth & Zabel LLP.

  • Top 5 Ways To Help A Law Professional Land A Job

    Mark Newall

    It is a hard truth, but a law degree is a tough thing to have nowadays. Overloaded with thousands of dollars in debt and only a few job prospects that require a law license, many law graduates are looking for ways to manage their careers. We suggest some proven methods to amplify and accelerate your job search, says Mark Newall of Essex Partners Legal.

  • The Citco Settlement And What Lies Ahead For PwC

    Jonathan Sablone

    Citco Group Ltd.’s recent $125 million settlement in Anwar et al. v. Fairfield Greenwich Ltd. has left PricewaterhouseCoopers LLC as the sole defendant in the class action related to Bernie Madoff's Ponzi scheme. PwC, like Citco, has deep pockets, but it perhaps is more vulnerable than other service provider defendants in the case, say Jonathan Sablone and Danielle McLaughlin of Nixon Peabody LLP.