Bankruptcy

  • July 25, 2016

    Couple Indicted After Meningitis Outbreak Want Charges Axed

    A majority shareholder in the now-bankrupt New England Compounding Center and her husband, who were charged following a deadly meningitis outbreak in 2012 caused by fungus-tainted steroid injections the company distributed, said charges that they illegally pulled money out of their bank accounts are redundant and should be tossed.

  • July 25, 2016

    TerraForm Power Adopts Poison Pill As Big Buyers Circle

    Targeted for a potential big buy-in by a hedge fund and asset manager, TerraForm Power Inc. announced adoption of “poison pill” shareholder protections Monday to discourage accumulation of Class A shares in the renewable energy company.

  • July 25, 2016

    Aeropostale Gets OK To Poll Voters On Ch. 11 Plan

    Teen apparel retailer Aeropostale got a New York bankruptcy judge's approval Monday to begin soliciting creditor votes on a Chapter 11 plan, though questions remain over whether the company will be able to sell the business as a going concern or will have to liquidate.

  • July 25, 2016

    Paragon Offshore Lenders Want Privileged Settlement Docs

    Attorneys for Paragon Offshore’s secured lenders urged a Delaware bankruptcy judge Monday to compel broader releases of the company’s attorney-client communications on a settlement with a former parent company, accusing Paragon of hiding records needed to judge the fairness of its overall Chapter 11 plan.

  • July 25, 2016

    'American Idol' Producer Defends $30M DIP Loan

    The production company behind reality talent show “American Idol” asked a New York bankruptcy judge to approve $30 million in Chapter 11 financing on Monday, arguing that the objections raised by unsecured creditors “do not seriously contest the reasonableness” of the proposed loan.

  • July 25, 2016

    Vertellus Wants Nod For Severance Deal To Protect Secrets

    Bankrupt insecticide maker Vertellus Specialties Inc. asked a Delaware bankruptcy judge Friday for approval of a $370,000 severance package to enforce a noncompete agreement with an executive whose job will be eliminated in a planned merging of the company’s business units.

  • July 25, 2016

    9th Circ. Rules Former Ski Club Owner Owes $286M

    The Ninth Circuit found Friday that a Montana bankruptcy court had erred in rejecting claims that the founder of the bankrupt Yellowstone Mountain Club LLC owes $286 million in fraudulently transferred funds.

  • July 25, 2016

    3 Tips For Acing A Prepackaged Ch. 11

    The ongoing downturn in the energy sector has fueled a recent spate of prepackaged Chapter 11 reorganizations. With the possibility of more on the way before 2016 is done, Law360 spoke to attorneys about ways restructuring practitioners can perfect prepacks to ensure a speedy trip through the court.

  • July 25, 2016

    RadioShack Employees Want Prebankruptcy Vacation Wages

    California RadioShack workers said Friday in a putative class action that the company and its successor, General Wireless, are tuning out their requests for payment for vested vacation time, according to a complaint filed in the century-old retailer's Delaware bankruptcy case.

  • July 25, 2016

    Jumio Avoids Ch. 7 Conversion With Complex Settlement

    Software developer Jumio Inc. told a Delaware bankruptcy judge on Monday that it will not be converting its case to a Chapter 7 liquidation if the company and other stakeholders honor the terms of a complex settlement agreement.

  • July 25, 2016

    Atlas Resources Inks Ch. 11 Prepack To Nix $900M In Debt

    Atlas Resource Partners LP said Monday that it intends to file a prepackaged Chapter 11 plan of reorganization that would reduce its debt by about $900 million and hand control of the oil and gas company to its lenders.

  • July 22, 2016

    Texas Bankruptcy Courts Boom With Commodities Bust

    Bankruptcy courts in Texas are seeing more complex Chapter 11 cases than they have since the 1980s as energy companies choose to restructure on their home turf amid the ongoing commodities price bust, in what experts view as a temporary uptick wed to the fate of oil and gas markets.

  • July 22, 2016

    Sports Authority's Unsecured Creditors Urge Ch. 7 Conversion

    Sports Authority’s unsecured creditors committee pushed the Delaware bankruptcy court Friday to convert the case to a Chapter 7 liquidation, arguing that there’s no way the defunct retailer can even pay its $50 million pool of administrative claims, let alone other lenders, and that staying in Chapter 11 abuses the system.

  • July 22, 2016

    Peabody Bankruptcy Judge OKs Self-Bonding Challenges

    A Missouri bankruptcy judge has allowed environmental groups to resume their efforts to prove that bankrupt Peabody Energy Corp. cannot continue to self-bond for mining operation cleanups.

  • July 22, 2016

    CFPB Blasts Attys' Bid To Duck Morgan Drexen Judgment

    The Consumer Financial Protection Bureau asked a California federal judge Friday to ignore the recent filings of two lawyers ordered to pay $5.3 million for their alleged roles in the $173 million Morgan Drexen debt-settlement fee scam, saying the filings “regurgitate” already rejected arguments and are procedurally infirm.

  • July 22, 2016

    Fox Fights Comcast's Docs Bid In Network Bankruptcy Suit

    Fox Sports Net asked a Texas bankruptcy court Thursday not to make it turn over documents from contract negotiations with the MLB’s Astros and NBA’s Rockets in a suit alleging Comcast intentionally torpedoed the value of a Houston affiliate, saying this request is barred by an earlier court order in the larger proceeding. 

  • July 22, 2016

    Hastings Parent Gets Green Light For Liquidation Sales

    The parent company of Hastings Entertainment Inc. received approval Friday in Delaware bankruptcy court for an $85 million sale of its assets to a liquidating partnership that served as an auction stalking horse bidder.

  • July 22, 2016

    The Most Influential Bankruptcy Judges In History

    From the Chandler Act in the late 1930s to the contemporary fast-paced brand of complex business restructuring, these judges left an indelible mark on the body of law and procedures that make up today’s corporate bankruptcy practice. Here, Law360 spoke with restructuring attorneys and experts to get their take on some of the giants of the bankruptcy bench.

  • July 22, 2016

    Constellation Reports Del. Ch. 11 Gains, Delays Final DIP

    Industrial metals fabricator Constellation Enterprises postponed final approvals for its $32.5 million bankruptcy financing plan Friday, but it also reported progress toward the sale of its four main businesses, including a creditor stalking horse bid that could set a $100 million minimum for three sites.

  • July 22, 2016

    NovaStar Successor Files For Ch. 11 Protection

    Novation Cos. Inc., a former subprime mortgage lender once known as NovaStar Financial Inc., filled for Chapter 11 bankruptcy protection, according to papers filed Wednesday in federal bankruptcy court in Maryland.

Expert Analysis

  • Testing The UBE: Missouri Benefits From Uniform Bar Exam

    Jim Nowogrocki

    We in Missouri do not take lightly to new trends or frothy ideas. Yet, the uniform bar exam has allowed us to meet the challenges of an increasingly mobile legal profession and the changing needs of clients, and to ensure that a newly admitted attorney has the knowledge, character and fitness to practice in the Show-Me State, says Jim Nowogrocki, president of the Board of Law Examiners in Missouri — the first state to adopt the UBE.

  • PROMESA Shields Puerto Rico Behind A New Automatic Stay

    Michael P. Cooley

    Tucked at the end of the Puerto Rico Oversight, Management, and Economic Stability Act is a stand-alone provision that promises an immediate impact not merely on bondholders and other creditors seeking to enforce payment and remedies, but on any person or entity seeking to enforce rights generally against the government of Puerto Rico or any “territorial instrumentality,” says Michael Cooley of Bryan Cave LLP.

  • Curing Substantive Ambiguities In Debt Documentation

    Abbe Dienstag

    Recent New York state court decisions in GSO Coastline v. Global A&T Electronics present a cornucopia of issues arising under standard indenture clauses. First, beware of seemingly technical amendments to indentures that have substantive consequences, says Abbe Dienstag of Kramer Levin Naftalis & Frankel LLP.

  • Lehman Court Flip-Flops On Flip Provisions

    Patrick E. Fitzmaurice

    A recent decision from a New York federal judge in the Lehman Brothers bankruptcy case departs from precedent in the same case in determining that so-called “flip” provisions in swap agreements are protected by the Bankruptcy Code’s safe harbor provisions for swap agreement transactions, say Patrick Fitzmaurice and Stephen Roach of Troutman Sanders LLP.

  • How Law Firms Can Create Next-Generation Office Spaces

    Tere Blanca headshot (1).jpg

    Law firms today are recognizing that the process of creating a next-generation workplace is far more complex than relocating to a more modern space in a trendier part of town. The challenge is more significant for larger firms with multiple generations represented within their executive teams, says Tere Blanca, founder of Miami-based Blanca Commercial Real Estate Inc.

  • Selling Your Twinkie And Eating It Too

    Alan S. Kaden

    Less than four years after Twinkie maker Hostess Brands was in bankruptcy, the company’s current owners recently agreed to sell interests in Hostess to a special-purpose acquisition company in a deal that involves a "tax receivable agreement" — a growing trend in which tax attributes of the target company are monetized for sellers’ benefit, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • New COD Rules For Disregarded Entities Are Restrictive

    Lisa B. Petkun

    Recently released IRS regulations applying the bankruptcy exclusion to cancellation-of-debt income of a grantor trust or a disregarded entity are contrary to U.S. Tax Court holdings and prevent taxpayers from taking advantage of the COD rules, says Lisa Petkun of Pepper Hamilton LLP.

  • Spotlight Remains On Marketplace Lenders Post-Madden

    Joseph Cioffi

    Following the U.S. Supreme Court’s denial of certiorari in Madden v. Midland Funding, the focus on online marketplace lenders spawned by the Second Circuit’s decision has only intensified. As potential issues crystallize through lawsuits and regulations, the opportunity exists for lenders to adjust their practices and steer away from unintended consequences, say Joseph Cioffi and Massimo Giugliano of Davis & Gilbert LLP.

  • Stakes Are High In Supreme Court Review Of Jevic

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    In Czyzewski v. Jevic, the U.S. Supreme Court will decide the extent to which bankruptcy courts can approve priority-skipping structured settlements without the consent of priority claimants whose rights are impaired. This will have a direct effect on negotiations between parties in large Chapter 11 cases, says Matthew Stockl of Foley & Lardner LLP.

  • NY 'Zombie Property' Legislation Is Back From The Dead

    Craig M. Johnson

    "Zombie properties" — residential properties abandoned by a homeowner after the initiation of a foreclosure action but prior to the completion of such action — have been a serious problem in New York since the housing collapse of 2008, but the Legislature has finally passed a law that might be able to fix New York's zombie property epidemic, say attorneys at Dentons.