Reorganized real estate lender Capmark Financial Group Inc. on Tuesday asked for approval of a settlement over $16.7 million in disputed stock redemption and severance payments its former president and CEO William F. Aldinger III collected following his resignation, though it is keeping the deal’s terms a secret.
A New York federal judge on Thursday lambasted a proposal by Argentina to pay holders of its sovereign debt beyond the reach of U.S. courts, but stopped short of holding the country in contempt.
The former president of DBSI Inc. was sentenced Wednesday in Idaho federal court to 20 years in prison for his role in running a Ponzi-like scheme through the bankrupt real estate firm, while the firm's ex-general counsel was handed a five-year sentence.
A New York bankruptcy judge on Thursday upped by $15 million the amount of directors and officers insurance that former top MF Global Holdings Ltd. executives can tap, a stopgap measure pending a decision on whether they control more than $200 million in disputed policy proceeds.
Federal prosecutors told a New York federal judge Wednesday that five people convicted of buttressing Bernie Madoff's 40-year investment fraud should receive the harshest sentences possible, including $150 billion in forfeitures, arguing that all five reasonably foresaw the fraud at least a decade before it collapsed in spectacular fashion.
The judge overseeing Nortel Networks Corp.’s Canadian bankruptcy ruled Tuesday that noteholders aren’t entitled to post-petition interest on nearly $4.1 billion in crossover bonds, finding that payment of such interest would tip the scales against the telecom’s other unsecured creditors.
Trustee Wilmington Trust Co. and General Motors LLC filed dueling briefs Tuesday in New York bankruptcy court in response to a former GM employee’s bid to pursue claims against GM over his wrongful conviction for rape, with Wilmington arguing GM should face the claims.
A New York bankruptcy judge on Tuesday threw out damages claims against Lehman Brothers Holdings Inc. brought by shareholders in defunct SkyPower Corp., a Canadian renewable energy developer that fell apart when Lehman, its controlling shareholder, collapsed and stopped supporting it.
A creditor of bankrupt frozen vegetable producer Allens Inc. on Tuesday reiterated its bid for sanctions against the Freeborn & Peters LLP attorney overseeing the company’s Perishable Agricultural Commodities Act claims, arguing that the attorney delayed payment of its $3.5 million allowed claim by filing a "frivolous" objection.
The Lehman Brothers Inc. liquidating trustee on Tuesday asked for the full Second Circuit to rehear his claims that Barclays PLC is not entitled to $4 billion in Lehman Brothers Inc. trading collateral, arguing that a panel’s decision could allow attorneys to negotiate bankruptcy sales in secret.
A Texas federal judge has refused to grant Indian natural resources major Sesa Sterlite Ltd. a reprieve from a $83 million judgment arising from its aborted $2.5 billion deal to buy Asarco LLC out of bankruptcy in 2008, ruling that it can’t prioritize payments due to noteholders over its debt to Asarco.
Atlantic City's Revel Casino Hotel will close Sept. 1, according to a Wednesday order, after failing to find a buyer in its second round of Chapter 11 bankruptcy protection, making it the fourth closure announced this year in Atlantic City's hobbled gaming industry.
Attorneys for the state of California asked a New York bankruptcy judge on Tuesday not to halt proceedings in a suit alleging General Motors LLC concealed serious ignition switch safety defects to avoid having to issue recalls, to provide the state an opportunity to have the case sent back to state court.
The former CEO and controlling stakeholder of bankrupt card transaction processor Phoenix Payment Systems Inc. took issue late Tuesday with the debtor’s $50 million stalking horse sale plan, arguing that it should instead consider proposals for a reorganization plan supported by an equity infusion.
A Delaware bankruptcy judge on Wednesday granted final Chapter 15 recognition to Ontario-based Essar Steel Algoma Inc., providing the steelmaker with court protection while it works to lighten its $1.2 billion debt load in Canadian restructuring proceedings.
Barclays Capital Inc. has agreed to pay $23 million to resolve a suit brought by the trustee for defunct Thornburg Mortgage Inc. over a $2.7 billion mortgage-backed securities liquidation that allegedly undervalued Thornburg's assets and contributed to its collapse, according to court documents filed on Wednesday in Maryland bankruptcy court.
A joint venture between television investment guru Marcus Lemonis and the owner of ice cream chain Dippin’ Dots is poised to buy Crumbs Bake Shop Inc. out of bankruptcy with a $6.5 million bid, after the shuttered cupcake chain said on Wednesday that no competing suitors had emerged.
The president of Argentina on Tuesday announced a plan to pay holders of its sovereign debt outside of the reach of U.S. courts, after a New York federal judge blocked a payment to bondholders who agreed to restructurings, which led the country to default for the second time in 13 years.
The owners of American Media Inc., which recently acquired all issued and outstanding shares of the National Enquirer publisher, said Monday that they would convert $121.3 million of second lien notes into common equity and that they have taken efforts to minimize the fallout from the bankruptcy of distribution partner Source Interlink Cos.
Detroit on Monday fired back at bond insurer Syncora Holdings Ltd. for saying the city's plan for exiting bankruptcy $7 billion lighter in debt is a conspiracy to defraud the city's creditors, urging a Michigan bankruptcy judge to sanction Syncora for its “falsehoods.”
"If you follow the philosophy of saving everything you're just multiplying exponentially the costs and risks of litigation and investigations," says Robert Owen, partner in charge of Sutherland Asbill & Brennan LLP's New York office and president of the Electronic Discovery Institute.
The Delaware bankruptcy court’s holding in the case of Ormet Corp. that the express provisions of Section 363(f) are not trumped by the policy considerations embodied in the Employee Retirement Income Security Act and the Multiemployer Pension Plan Amendments Act should give comfort to debtors and purchasers of assets in a free-and-clear sale, says Christopher Hopkins of Weil Gotshal & Manges LLP.
The Second Circuit ruling that Bernard L. Madoff bankruptcy trustee Irving Picard may not block two large settlements involving Madoff feeder funds is welcome news for institutions that invested in “intermediate” funds that are still solvent. Commentators, however, fully expect that Picard will continue to appeal adverse decisions, including this most recent ruling, say Jonathan Sablone and Danielle McLaughlin of Nixon Peabody LLP.
The Chapter 11 case of Genco Shipping & Trading Ltd. presented the Southern District of New York with a complex question of value. Unfortunately for the official committee of equity holders, the only valuation that put equity in the money was a rejected discounted cash flow, say Daniel Glosband and Thomas Good of Goodwin Procter LLP.
With all attention focused on Executive Benefits Insurance Agency v. Arkison, the U.S. Supreme Court's Daimler AG v. Bauman decision could represent the real sea change in jurisdiction over noncore actions, say attorneys with Latham & Watkins LLP.
To this day, I have yet to see a litigation hold letter that was written by someone who understands the realities of how a business is actually run. In-house counsel cannot issue decrees to business units that read like they are issued by the king to his subjects, says Francis Drelling, in-house counsel at Specialty Restaurants Corp.
To avoid the risk of multiple depositions or inadmissible testimony, all counsel should focus prior to a deposition — and before designating a witness — on knowledge and hearsay issues that may arise at Rule 30(b)(6) depositions, say Susan DiCicco and Stephen Scotch-Marmo of Bingham McCutchen LLP.
The ways that multiple accounts may be set up for individuals investing in a Ponzi scheme are endless, and numerous questions arise when the scheme has ended up in an insolvency proceeding. Unfortunately, courts' divergent views only create opportunities for yet more litigation, says Kathy Bazoian Phelps of Diamond McCarthy LLP.
On average, a legal professional forwards content to 14 different people per week. Yet many attorneys and staff lack an understanding of copyright and their firm’s specific policies regarding shared third-party materials, says Roy Kaufman of Copyright Clearance Center.
Given the expedited nature of the 2008 sale of Lehman Brothers’ brokerage business to Barclays Capital, it is not entirely surprising that ambiguities existed, but market participants can take comfort in a Second Circuit examination of the “commercial reality” of the transaction in a ruling that may affect future payouts to Lehman creditors, say Adam Friedman and Jonathan Koevary of Olshan Frome Wolosky LLP.