Bankruptcy

  • October 21, 2014

    GT Advanced Nears Deal With Apple To Explain Bankruptcy

    Apple Inc. supplier GT Advanced Technologies Inc. expects to reach an agreement shortly that would resolve its onetime partner’s worries about publicly airing information on the companies' falling-out that abruptly drove it into Chapter 11, attorneys said Tuesday morning.

  • October 20, 2014

    Energy Future Creditors Bristle Over Auction Plans

    Energy Future Holdings Corp. caught heavy flak Monday over the proposed auction of its valuable stake in Oncor Electric Delivery Co. LLC, with creditors of the bankrupt power giant questioning the timing and structure of the sale process.

  • October 20, 2014

    Ch. 11 Watchdog Rips GTAT's $25M Critical-Vendor Bid

    The U.S. government’s bankruptcy monitor slammed GT Advanced Technologies Inc.’s request for $25 million in spending power to keep supplies coming from vendors it has refused to identify because of a confidentiality pact with its estranged partner Apple Inc.

  • October 20, 2014

    Bankrupt Variant Gets $10M DIP In Settlement With Creditor

    Lender Beach Point Capital Management LP and debtor Variant Holding Co. LLC, which accused the creditor of a loan-to-own scheme, resolved their differences Monday in a deal that would have the lender that once accused the real estate company of “complex fraud” providing up to $10 million in debtor-in-possession financing.

  • October 20, 2014

    Revel Auction Loser Can’t Void Brookfield Sale, Judge Says

    A New Jersey bankruptcy judge on Monday formally rebuffed a motion to invalidate the auction of Atlantic City’s bankrupt Revel Casino Hotel, dismissing a losing bidder’s claims of a tainted auction days after the bidder filed notice of appeal.

  • October 20, 2014

    Sam Wyly Seeks Ch. 11 To Deflect Looming $198M Fine

    Texas tycoon Sam Wyly sought Chapter 11 protection Sunday, saying he can't afford a potential $198 million government penalty for allegedly using secretive offshore trusts to trade stocks while evading taxes.

  • October 20, 2014

    9th Circ. Lavish Spending Tax Ruling Unlikely To Spread Far

    A recent Ninth Circuit ruling that extravagant spending habits aren't enough to prove willful tax evasion appears to hurt one of the IRS's key litigation strategies, but attorneys say the impact will likely be blunted by the circuit's outlier stance.

  • October 20, 2014

    Specialty Products Gets Nod On Ch. 11 Disclosure Statement

    A Delaware bankruptcy judge agreed Monday to greenlight Specialty Products Holding Corp.'s disclosure statement for its Chapter 11 plan, allowing the home-repair products company besieged by asbestos-related claims to solicit creditors and putting it in the home stretch to exit bankruptcy after four and a half years.

  • October 20, 2014

    Detroit Could See Decision On Ch. 9 Exit Within Weeks

    The judge presiding over Detroit’s bankruptcy case said Monday that the city will likely find out in less than three weeks if it can exit the largest Chapter 9 in history under a plan that would erase more than $7 billion in debt and reinvest in essential services to reverse a half-century of civic decline.

  • October 20, 2014

    Sears Plans $625M Rights Offering As CEO Injects More Cash

    Sears Holdings Corp. on Monday announced a $625 million rights offering and said it would lease out more than 500,000 square feet of retail space to European fashion retailer Primark as the retailer continues its struggle to shore up its financial footing.

  • October 20, 2014

    High Court Won't Mull Bankrupt Co.'s Row With Puerto Rico

    The U.S. Supreme Court said Monday it will not review a First Circuit ruling regarding a construction company's allegations that the Puerto Rican government drove it into bankruptcy by yanking contracts after an unrelated plea deal.

  • October 17, 2014

    Madoff Trustee Files $62M Deal In Customer Clawback Suit

    The trustee tasked with winding down Bernie Madoff’s investment fund reached a deal valued at $62 million with a group of investors who were paid out of funds tainted by the Ponzi scheme, according to a motion filed in New York bankruptcy court on Friday.

  • October 17, 2014

    Energy Future Plugs Auction Plan, Draws Fire From Creditors

    Energy Future Holdings Corp. urged a Delaware bankruptcy judge on Friday to bless a proposal to auction its prized stake in Oncor Electric Delivery Co. LLC but faced resistance from various creditor groups who contend the auction scheme would deprive them of billions of dollars.

  • October 17, 2014

    US Airways Pilots Near Settlement In Lump-Sum Pension Fight

    A group of former US Airways Group Inc. pilots are nearing a settlement with the airline’s pension plan trustee over accusations it takes too long to hand out lump-sum benefits, a D.C. federal judge revealed on Friday in a class certification order five months after the D.C. Circuit revived the case.

  • October 17, 2014

    Filing Mistake Can End GM Secure Interest, Del. Justices Say

    The Delaware Supreme Court ruled Friday that a secured lending interest is terminated simply by filing the appropriate paperwork, regardless of the party's intent or understanding, answering a question from the Second Circuit over a challenge involving a JPMorgan Chase & Co. unit in the General Motors Corp. bankruptcy case.

  • October 17, 2014

    Venable-Acquired Firm Escapes $590M Movie Loan Suit

    A New Jersey federal judge on Thursday dismissed a Los Angeles firm, since acquired by Venable LLP, from a suit over $590 million in movie financing, agreeing the absolute litigation privilege shields the firm from claims it aided and abetted a client's fraudulent activity.

  • October 17, 2014

    Skadden Dispute Over Radnor Sale To Stay In Bankruptcy Court

    A Delaware federal judge on Friday denied defunct packaging company Radnor Holdings Co.'s motion to move an adversary case out of bankruptcy court, after its former executive failed to convince judges that Skadden Arps Slate Meagher & Flom LLP conspired with a hedge fund to sell off its assets.

  • October 17, 2014

    Corinthian Lenders Hold Off On Defaults Amid Wind-Down

    Corinthian Colleges Inc.’s lenders have agreed to hold off on taking action to seize assets after a loan default last month, according to a Friday statement from the for-profit college operator, which is spinning off its assets in a government-ordered wind-down.

  • October 17, 2014

    AA Pilots Can't Challenge CBA Ruling, Judge Says

    A New York federal judge on Friday refused a challenge to a bankruptcy court’s approval of a collective bargaining agreement between American Airlines and a pilots’ union that scaled back benefits, finding a group of disgruntled pilots nearing retirement lack the standing to object.

  • October 17, 2014

    Nautilus Wins Bank Lenders' OK To Tee Up Ch. 11 Plan

    Bankrupt container shipping venture Nautilus Holdings Ltd. secured more time to cut deals with bank syndicate lenders skeptical of its proposed restructuring plan, which is purportedly being challenged by a mystery investor who wants to acquire a blocking position in its debt.

Expert Analysis

  • The Cayman Way Of Identifying, Enforcing Against Assets

    Christopher Russell

    Identifying Cayman Islands-held assets of a defendant or proposed defendant is something of a mixed bag — straightforward in some respects, but difficult, bordering on the impossible, in other respects, say Christopher Russell and Jane Hale-Smith of Appleby Global Group Services Ltd.

  • Accessing The D&O Liability Coverage Of A Bankrupt Corp.

    Mary E. McCutcheon

    A traditional directors and officers insurance policy risks dilution where the company also faces a covered claim. And when the company has filed for bankruptcy, payment of the proceeds for claims against the directors and officers may be delayed, and even impaired, says Mary McCutcheon of Farella Braun & Martel LLP.

  • 2nd Circ. Fails To See The Comity In Chapter 15

    Daniel M. Glosband

    The Second Circuit in the case of Fairfield Sentry Ltd. missed the point that applying Section 363 to the sale of a Securities Investor Protection Act claim — in the context of a Chapter 15 ancillary proceeding — to the same extent that it would apply to property of an estate does not eliminate the principles of comity that infuse Chapter 15, say Daniel Glosband and Kizzy Jarashow of Goodwin Procter LLP.

  • What Litigators Can Learn From Novelists

    Michael H. Rubin

    Many legal briefs are written in impenetrable jargon and begin with an introduction telling the court what it already knows, using words that stem from the 18th century, such as “hereinafter.” Instead, we should approach briefs the way novelists approach their writing, says Michael Rubin of McGlinchey Stafford PLLC.

  • When Your General Contractor Files Bankruptcy

    Vicki R. Harding

    All is not lost when a general contractor files bankruptcy — subcontractors may be able to perfect their construction liens post-petition, as in the case of Branch Banking & Trust Co. v. Construction Supervision Services Inc., says Vicki Harding of Pepper Hamilton LLP.

  • 2nd Circ. Expands US Court Role In Ch. 15 Cases

    George W. Shuster Jr.

    In a recent Madoff-related decision, the Second Circuit took a relatively aggressive stance on U.S. court review of asset sales in Chapter 15 cases, and the ruling may have effects in bankruptcy cases outside Chapter 15, say George Shuster and Benjamin Loveland of WilmerHale.

  • Del. Clarifies Approach To Derivative Suits In Insolvency

    Brad Eric Scheler

    Before the Delaware Supreme Court’s landmark Gheewalla ruling, application of the business judgment rule to actions by directors of insolvent companies had been controversial, given the concern that directors might be inclined to engage in high-risk strategies while creditors bear the risk of failure. A recent Chancery Court decision highlights this concern, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Information Governance: A Missed Opportunity For Lawyers

    Ann Snyder

    Today, information intersects every practice area, making all lawyers effectively information governance practitioners in one way or another. The issue is whether you will consciously embrace this emerging discipline — and capitalize on it to the benefit of your clients and your practice, says Ann Snyder of the Information Governance Initiative.

  • Escaping Taxes In Bankruptcy Through S Corporations

    Chad C. Coombs

    Shareholders of financially troubled S corporations may now be able to avoid the flow-through of taxes when the S corporation or its subsidiary files bankruptcy, thanks to a Third Circuit ruling in the Chapter 11 case of Majestic Star Casino LLC. The losers are the corporation’s unsecured creditors, says Chad Coombs of Greenberg Glusker Fields Claman & Machtinger LLP.

  • Clarifying TruPS Holders’ Exercise Of Remedial Rights

    Andrew I. Silfen

    Given a recent bankruptcy court decision in the case of FMB Bancshares Inc., bank-holding companies should be aware that trust-preferred securities holders may have some support for a further or direct power in their efforts to realize a return on their investment, say attorneys with Arent Fox LLP.