Bankruptcy

  • September 28, 2016

    Gawker Creditors Seek Info On Co. Finances, Denton Loan

    The unsecured creditors committee of Gawker Media on Tuesday asked a New York bankruptcy judge for the right to examine Gawker’s books, including an alleged $200,000 loan to founder Nick Denton.

  • September 28, 2016

    Midstates Petroleum Gets Nod On Ch. 11 Plan

    A Texas judge on Wednesday approved Midstates Petroleum’s plan for restructuring billions of dollars in debt, a decision that will clear the oil and gas company’s exit from Chapter 11 after seeking bankruptcy protection earlier this year.

  • September 28, 2016

    EPA Settles Cleanup Issues In Vertellus Ch. 11 Sale Plan

    Bankrupt chemical maker Vertellus Specialties Inc. sought expedited court approval late Tuesday for a U.S. Environmental Protection Agency cleanup funding agreement needed to round out a $450 million all-asset Chapter 11 sale and company liquidation.

  • September 28, 2016

    Bennu Titan Granted Delay Bid In Forced Ch. 11 Case

    A Delaware bankruptcy judge on Wednesday granted a bid by offshore drilling firm Bennu Titan LLC to delay a hearing on the involuntary appointment of a Chapter 11 trustee, despite objections from a lender seeking $180 million.

  • September 28, 2016

    Cosi The Latest Restaurant Chain To Seek Ch. 11

    Cosi, the restaurant chain known for flatbread and square bagels, filed for Chapter 11 protection Wednesday in Massachusetts with a plan to sell itself to its lenders after a drop in its sales.

  • September 28, 2016

    Golfsmith's Bankruptcy Plan Raises Privacy Concerns

    Bankrupt golf retailer Golfsmith International Inc. likely needs a privacy ombudsman because its asset sales could involve the handoff of customer information that is protected by privacy policies, the U.S. trustee said Wednesday.

  • September 28, 2016

    American Apparel Reportedly Promotes GC To CEO Role

    American Apparel Inc. is reportedly replacing Paula Schneider, brought on in January 2015 to turn the company around after a bankruptcy and the ousting of the company’s founder, with General Counsel Chelsea Grayson, an ex-Loeb & Loeb LLP partner whose expertise lies in mergers and acquisitions.

  • September 28, 2016

    Abengoa Creditors Look To Probe Pre-Bankruptcy Deals

    U.S. creditors of Spanish renewable energy developer Abengoa SA on Tuesday sought permission from a Delaware bankruptcy judge to investigate the company's finances, a day after Abengoa submitted an overview of a complicated global plan to restructure billions of dollars in debt.

  • September 28, 2016

    Yellen Says Fed, FDIC Ready To Act If Living Wills Are Weak

    Federal Reserve Chair Janet Yellen said Wednesday that regulators will be prepared to mete out penalties to five giant banks scheduled to file revised resolution plans later this week if there are not significant improvements to the so-called living wills.

  • September 28, 2016

    Rainmaker Q&A: Sills Cummis' Andrew Sherman

    Find a mentor and do your best to hitch your wagon to that person. I learned to develop business by modeling other successful lawyers, but having a mentor to teach you the ropes is a much cleaner and easier path, says Andrew Sherman, co-chairman of the creditors’ rights/bankruptcy reorganization practice group at Sills Cummis & Gross PC.

  • September 27, 2016

    Pharma Co. Linked To Ex-Gov. McDonnell Scandal Hits Ch. 7

    The company once alleged to be at the center of former Virginia Gov. Bob McDonnell’s federal corruption charges, now called Rock Creek Pharmaceuticals Inc., filed for Chapter 7 bankruptcy in Delaware on Tuesday, saying “legacy issues” stymied its attempts to raise money and it eventually defaulted on secured debt.

  • September 27, 2016

    SEC, IRS Tell Court To Nix Latest Wyly Estate Ch. 11 Plan

    The U.S. Securities and Exchange Commission and the Internal Revenue Service both urged a federal judge in Texas on Monday to reject the third version of a Chapter 11 reorganization plan for the estate of deceased business tycoon Charles Wyly, arguing there's been no assurance that the plan will be funded.

  • September 27, 2016

    Sanctioning An Atty Is Not Grounds For Recusal, Judge Says

    The bankruptcy judge overseeing a long-running dispute that was once the subject of a U.S. Supreme Court ruling does not have to recuse herself because she once sanctioned one of the attorneys to the dispute, a U.S. district judge said on Monday.

  • September 27, 2016

    Hercules Ch. 11 Trial Judge Suggests Renewed Negotiations

    Hercules Offshore Inc.’s contested bankruptcy confirmation hearing ended Tuesday with a court suggestion to resume settlement talks on a Chapter 11 plan repeatedly attacked by stockholders as the unfair product of a suspicious business failure.

  • September 27, 2016

    Goodrich Defends Ch. 11 Plan, Says It Nixes $350M In Debt

    Goodrich Petroleum on Tuesday urged a Texas bankruptcy judge to approve the oil and gas driller’s reorganization plan and overrule objections challenging aspects of the proposal, saying in a court filing that the plan will eliminate about $350 million of debt and maximize recoveries for creditors.

  • September 27, 2016

    Ex-Milberg Atty Tagged In Kickback Plot Settles Madoff Suit

    A former Milberg Weiss partner who was sentenced to prison for his role in a scheme to secretly pay individuals who agreed to serve as class action plaintiffs has resolved a separate lawsuit to recover millions of dollars he received by investing in Bernie Madoff’s bogus securities trading business, according to court documents filed Tuesday in New York.

  • September 27, 2016

    Samson Resources Loses Exclusive Control Over Ch. 11 Case

    Samson Resources Corp. lost its right Tuesday to be the only party that can file a Chapter 11 plan when a Delaware bankruptcy judge wouldn't extend its exclusivity period, setting the stage for unsecured creditors to lodge a strategy of their own to restructure the company's $4 billion debt load.

  • September 27, 2016

    SEC Hits Bankrupt KiOR With Fraud Suit Over $150M IPO

    The U.S. Securities and Exchange Commission on Monday hit biofuel developer KiOR Inc. with a fraud suit in Texas federal court over its $150 million initial public offering of stock, which shortly preceded KiOR’s bankruptcy after it became clear the company’s technology wasn't viable.

  • September 27, 2016

    ITT Tech Trustee Enlists Proskauer For Fraud Suits

    The trustee overseeing the liquidation of ITT Technical Institute sought an Indiana bankruptcy judge's permission Monday to retain Proskauer Rose LLP to handle the bevy of fraud lawsuits brought against the now-shuttered for-profit college by state and federal regulators.

  • September 27, 2016

    Ex-Shearson Workers Press Case For Arbitration In 2nd Circ.

    Former Shearson workers seeking $300 million in deferred pay from the Lehman Brothers Inc. trustee told the Second Circuit on Tuesday that they are the only big gorilla left in the massive Chapter 11 and that, therefore, there is no harm to others if a dispute over the priority of their claims is sent to arbitration under a 1985 employment contract.

Expert Analysis

  • The Courtroom Where It Happened: Hamilton As A Lawyer

    Randy Maniloff

    Often lost in discussions about Alexander Hamilton is that he was an extremely important New York lawyer. He had an extensive law practice until his death in 1804 and he wrote what is considered to be the first treatise in the field of private law. Ultimately, Hamilton certainly did get "a lot farther by working a lot harder, by being a lot smarter, by being a self-starter," says Randy Maniloff of White and Williams LLP.

  • A Solution For Competing Foreign Insolvency Proceedings

    Laura Femino

    Uncertainty over a debtor’s home jurisdiction for purposes of insolvency proceedings — termed its “center of main interests,” or COMI — has allowed minority creditors to commence competing insolvency proceedings in foreign courts that jeopardize otherwise centralized restructurings. COMI clauses in governing indentures could create significant advantages for all stakeholders, say Laura Femino and Richard Kebrdle of White & Case LLP.

  • Why Have Lawyers Forgotten About The Middle Class?

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    Sorry, fellow lawyers, judges and legislators, but the jig is up. It’s time to show the public the cards up our sleeves and give them a chance to weigh in on the fairness of a system that touches so many aspects of their everyday lives, says Chas Rampenthal, general counsel of LegalZoom.

  • Tax Sales And Fraudulent Transfers: 2 Approaches

    Michael T. Benz

    With its recent ruling in Tracht Gut, the Ninth Circuit became the third federal appeals court to hold that real estate tax sales are for reasonably equivalent value and cannot be set aside as fraudulent transfers. This approach, however, is at odds with the Seventh Circuit’s approach in Smith, and raises questions about the scope of the U.S. Supreme Court’s opinion in BFP v. Resolution Trust, say Michael Benz and James Sullivan of... (continued)

  • Protection For Bondholders During Collateral Release

    Gregory C. Scott

    There might not be any cases decided under Section 314(d)(1) of the Trust Indenture Act, and it is likely that its provisions are rarely outcome-determinative. Nonetheless, Section 314(d)(1) could provide protection to bondholders against an abusive collateral release, says Gregory Scott of Kramer Levin Naftalis & Frankel LLP.

  • Overhauling Law Firm Records Departments For A New Reality

    Raymond Fashola

    As automation increases, so do business challenges that impact overall law firm operations. Records departments are facing roadblocks associated with antiquated processes, ever-changing regulatory requirements, and emerging technologies. As a result, firms are reassessing the needs of their records department staffing models, says Raymond Fashola of HBR Consulting.

  • Debt Recharacterization Lessons From 4th Circ.

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    In a recent opinion in PEM Entities v. Province Grand Old Liberty, the Fourth Circuit provided guidance on when recharacterizing debt as equity is appropriate. The court’s decision also serves as a warning that debt purchasers may not be able to hide behind the original debt transaction in a recharacterization fight, says Mark Salzberg of Squire Patton Boggs LLP.

  • Transwest Threatens Senior Mortgage Lender Protections

    Geoffrey Raicht

    The recent Arizona district court decision in the case of Transwest Resort Properties, which has been appealed to the Ninth Circuit, may dramatically undermine the senior loan structure. The issue is of high importance to any company looking to reorganize complex corporate structures, but it is especially important when structuring real estate investments that rely upon a borrower’s corporate separateness from its affiliates and su... (continued)

  • 3 Steps To Successful Judgment Enforcement

    Craig Weiner

    Judgment enforcement is typically governed by the law of the state where collection is sought, which frequently means collection efforts are controlled by an arcane body of law replete with debtor-friendly roadblocks. Fortunately, there are a number of actions a judgment creditor can take to secure satisfaction of a claim, say Craig Weiner and Michael Kolcun of Robins Kaplan LLP.

  • Reducing Settlement Delays In Loan Trading Market

    Anthony R.G. Nolan

    In a long-awaited development, the delayed-compensation standard for late settlement of loans trading at or near par recently changed in important ways. By incentivizing market participants to speed up settlement of loan assignments, the Loan Syndications & Trading Association’s new standard should alleviate some of the factors that have contributed to blockages, say attorneys with K&L Gates LLP.