The city of Detroit sought approval from a Michigan bankruptcy court Thursday for $120 million in new financing from Barclays Capital Inc. to use for public service upgrades as the city strives to exit bankruptcy, according to court filings.
Employers that hired two of the former Dewey & LeBoeuf LLP executives charged Thursday with misrepresenting the bankrupt firm’s finances aren’t likely to face liability related to the criminal charges, experts told Law360 on Thursday, but they could very well suffer damage to their reputations despite their efforts to mitigate the harm.
Bankrupt Fisker Automotive Holdings Inc. won interim approval Thursday for a new $10.5 million debtor-in-possession package designed to cover the electric-car maker's expenses while it finalizes the sale to a unit of China's Wanxiang Group Corp.
A New Jersey bankruptcy judge on Wednesday approved a Chapter 11 reorganization plan filed by five HealthBridge Management LLC-run health care centers, ending a battle with the National Labor Relations Board, which fought HealthBridge’s rejection of expired collective bargaining agreements covering the centers’ employees.
Bankrupt oil services company Green Field Energy Services Inc. said Thursday that it would go with a Gordon Brothers Group LLC affiliate's stalking-horse bid and sell some equipment in a deal that would give the debtor $50 million up front and the first $17.5 million of any proceeds afterwards.
Criminal allegations unveiled Thursday that Dewey & LeBoeuf LLP executives had systematically cooked their books over several years to hide a dire financial position will likely send some BigLaw leaders running to the ledgers to ensure their own accounting can withstand the closest scrutiny, experts told Law360.
Thursday’s criminal charges against the former top brass of the now-defunct Dewey & LeBoeuf LLP are music to the ears of parties bent on clawing back certain executives’ compensation and pursuing new claims related to Dewey’s spectacular downfall, experts say.
The unprecedented accusation that the former leadership at Dewey & LeBoeuf LLP lied about the now-defunct firm’s financial health could yield a relatively basic accounting fraud trial, but the defendants could implement some not-so-basic strategies to emerge victorious.
A Delaware bankruptcy judge on Thursday approved Plextronics Inc.'s $32.6 million sale to a unit of a unit of Belgian chemical giant Solvay SA, the technology research company's largest shareholder and creditor.
A Rhode Island legislator’s request for documents related to a state court action against a failed video game company founded by former Boston Red Sox pitcher Curt Schilling has been denied, the state legislature said Thursday, dealing a temporary setback to policymakers’ probe into the demise of the state-backed game maker.
Former Dewey & LeBoeuf LLP partners looked on with a mixture of sadness, vindication and even embarrassment on Thursday as top executives at the fallen firm were charged with fraud, with some telling Law360 that, in retrospect, there were plenty of warning signs along the road to ruin.
The trustee of bankrupt New England Compounding Pharmacy Inc. and other parties are close to completing a proposed deal in which victims of a fatal 2012 meningitis outbreak would receive $100 million in multidistrict litigation, they told a Massachusetts federal judge on Wednesday.
A Delaware bankruptcy judge indicated Thursday that he would give the final OK for power plant operator Optim Energy LLC to secure an up to $115 million debtor-in-possession financing package from its nondebtor parent, Bill Gates' Cascade Investment LLC, over the objections of two of its trade partners.
The Financial Industry Regulatory Authority Inc. routinely deletes "red flag" information about brokers' bankruptcies, tax liens, firings, flunked tests and sales practice abuse investigations in its background information disclosure system, according to an international securities bar association study.
Three former Dewey & LeBoeuf LLP executives facing criminal and civil charges alleging they misled other lawyers and investors about the firm's financial health have turned to an experienced team of white collar and civil defense attorneys, including one known for his longtime representation of film director Woody Allen.
Young attorneys often make a key mistake — they fail to make themselves truly indispensable to a supervisor or to a client. They forsake forging deep bonds with a handful of select folks who will ultimately help to advance their careers, for the sake of doing bits and pieces on a variety of different matters, says Jill Nicholson, chairwoman of Foley & Lardner LLP's bankruptcy and business reorganizations practice.
The lawyer on the other side assumed I was the junior and initially deferred to my colleague, a junior male lawyer. I have to admit I did have a little bit of fun with it, playing to his view — the tea, coffee scenario. Of course, when he realized his error, it affected his contribution to the meeting, which was a positive, says Caroline Noblet, co-head of Squire Sanders LLP's labor and employment practice group.
Three former top executives at Dewey & LeBoeuf LLP, including Chairman Steven Davis, were indicted Thursday in New York state court on charges they misled lenders, other lawyers and investors about the firm's financial health before it spiraled into bankruptcy.
Dewey & LeBoeuf LLP's former leaders will likely be indicted on criminal charges for misleading other lawyers and investors over the now-bankrupt firm's financial well-being, while additional criminal charges could be filed against other ex-Dewey employees, according to a Wednesday report.
Data technology company Edgenet Inc. urged a Delaware bankruptcy judge Wednesday to reject a call by noteholders for an official committee, saying the appointment would run up additional costs on behalf of a group that already has a voice in the Chapter 11 case.
The First Circuit's recent decision in In re Munce’s Superior Petroleum Products Inc. is consistent with other circuits in concluding that noncompensatory environmental fines should receive administrative priority under the Bankruptcy Code. The decision, however, is at odds with other courts that have addressed the treatment of prepetition violations that result in post-petition penalties, say attorneys at Lowenstein Sandler LLP.
Section 503(b) of the Bankruptcy Code provides a unique opportunity for creditors to aid the estate in recovering assets and to be compensated for their efforts. However, a recent Florida court decision highlights the consequences of leaping to undertake such efforts but failing to obtain prior permission, says Reagan Boyce of Ezra Brutzkus Gubner.
If a company fails to comply with certain obligations under a loan agreement, it should engage the lender in discussions regarding the reasons for the failed compliance, whether the company is able to cure any existing default, or whether it believes a waiver, forbearance or amendment is appropriate. It could not be in the lender’s best interest to declare an event of default, and hence, the parties can begin negotiations, say George South and Daniel Egan of DLA Piper LLP (US).
In stark contrast to the changing environment for the majority of lawyers today, the evolution for the general counsel is driven less by necessity than by opportunity. Today’s GC may touch every aspect of his or her organization to solve challenges and propel the company forward, keeping the GC far ahead of what is expected of the average lawyer, says James Merklinger, vice president and general counsel of the Association of Corporate Counsel.
As reflected in a recent decision by the U.S. Bankruptcy Court for the District of New Jersey, in preparing loan documentation, it is important for practitioners to appreciate how applicable state law and bankruptcy courts will treat assignments of rents and whether, given that treatment, certain facts or structuring could alter whether and how the rents may be used in the event of the borrower’s bankruptcy, say attorneys with Alston & Bird LLP.
The trustee of bankrupt agribusiness giant SK Foods LP recently completed the Herculean task of recovering approximately $50 million from Australia for the company’s creditors in a saga that involved one of the largest Chapter 11 cases in the Eastern District of California, criminal charges, and a last-minute attempt by Australian authorities to confiscate assets. Among other things, the trustee's ability to establish personal jurisdiction in the U.S. over asset protection vehicles proved invaluable, say attorneys with Schnader Harrison Segal & Lewis LLP.
According to the Pew Center on the States, state retirement systems alone were collectively underfunded by $1.38 trillion as of 2010. Without pension reform, like in Florida after Scott v. Williams, state and municipal governments will be forced to cut spending elsewhere in order to continue funding pensions at current levels, which would hurt public employees themselves through layoffs and the breaking of contracts in municipal bankruptcies, say Jonathan Rose and Richard Siegel of Alston & Bird LLP.
The recently closed comment period for the proposed Federal Rules of Civil Procedure amendments generated passionate antipodal responses over discovery rules that appear to benefit large corporate litigants at the expense of individual plaintiffs and civil rights groups. The nature and intensity of the response should lead the committee to reconsider the overall fairness of the proposed discovery amendments, says Henry Kelston of Milberg LLP.
Increased disclosure requirements, likely shortening of time within which to file proofs of claim, and recent high-profile cases highlight the need for bankruptcy creditors to exercise extra vigilance, or face a harsh potential outcome — the lack of a party’s ability to participate in plan distributions, says Bik Cheema of BakerHostetler.
Before approaching creditors regarding refinancing or “workout” negotiations, a company will want to have developed a form of confidentiality agreement that it can enter into with any creditor that wants to engage in such discussions. The agreement will allow the company to share confidential, nonpublic information with its creditors without running the risk that such information will become public and potentially damage the value of the company or impede its efforts to refinance its debt, say George South III and Daniel Egan of DLA Piper LLP (US).