Bankruptcy

  • February 11, 2016

    Ex-Variant Atty Found In Contempt, Hit With $20K Sanctions

    A Delaware bankruptcy judge found real estate company Variant Holding Co. LLC's former counsel Jeffrey H. Greenberg of JH Greenberg & Associates PLLC in contempt Thursday, hitting him with $20,000 in sanctions for repeatedly ignoring orders to turn over records related to the debtor.

  • February 11, 2016

    Resort Founder's Atty Ordered To Explain Rule Violations

    The Tenth Circuit instructed an attorney for the bankrupt Yellowstone Mountain Club LLC’s former owner, who is trying to revive a racketeering suit against Cushman & Wakefield and Credit Suisse, to show why he shouldn’t be disciplined for failing to comply with court rules.

  • February 11, 2016

    Chicago Cab Co., Creditors Scolded For Ch. 11 Discovery Row

    An Illinois bankruptcy judge admonished Chicago’s Yellow Cab unit and its creditors in court Thursday, telling them their continued bickering over nearly year-old discovery issues in the company’s Chapter 11 is “appalling.”

  • February 11, 2016

    Feds Say Wylys Knew The Score In $2.2B IRS Fight

    The IRS told a Texas bankruptcy court on Wednesday that business tycoon Sam Wyly and his late brother’s widow can’t escape fraud allegations in a $2.2 billion dispute over alleged tax evasion schemes because the pair had direct knowledge of the conduct at issue.

  • February 11, 2016

    Foam Co. Settles With Mattress Maker In Antirust MDL

    Bankrupt mattress maker Consolidated Bedding Inc. and its affiliates have agreed to settle with FXI Holdings Inc. over allegations in a multidistrict litigation that it plotted with other polyurethane foam companies to fix prices, according to documents filed Thursday.

  • February 11, 2016

    Fresh Out Of Ch. 11, Hercules Offshore Mulls Sale

    Months after emerging from Chapter 11 bankruptcy, oil and gas drilling services provider Hercules Offshore Inc. on Thursday said that it is exploring a possible sale of the company.

  • February 11, 2016

    Caesars' Bank Lenders Say Patience 'Wearing Thin'

    Lenders holding most of the first-lien debt in Caesars Entertainment’s bankrupt operating unit said Wednesday in Illinois court that they will support the business’s request for additional breathing room as it looks to restructure its debt, but indicated that negotiations with financial stakeholders have stalled and that their patience is “wearing thin.”

  • February 11, 2016

    Ariz. Power Plant Plans Ch. 11 Sale, Lists $230M In Debt

    Arizona-based electric wholesaler Sundevil Power Holdings LLC filed for Chapter 11 bankruptcy protection in Delaware on Thursday, saying unfavorable power and fuel markets have pushed the company into a $230.7 million debt, a loan covenant default and a decision to sell all assets.

  • February 11, 2016

    SunEdison Barred From Asset Transfers In $150M Arbitration

    A group of South American investors seeking $150 million from troubled renewables developer SunEdison for allegedly abandoning a $733 million acquisition won an order in New York state court Thursday morning temporarily barring it from socking away funds that could be used to pay an arbitral award.

  • February 11, 2016

    Yellen Catches Heat For Fed's Handling Of Living Wills

    Senators pressured Federal Reserve Board Chair Janet Yellen on Thursday about a purported lack of transparency in the agency's decision-making process for approving living wills, designed to help guide banks through bankruptcy during a crisis, concerns she failed to alleviate.

  • February 11, 2016

    RadioShack Judge OKs $5.5M Deal With Pa. Store Managers

    The liquidating trustee overseeing RadioShack's bankruptcy agreed to pay $5.5 million in unsecured claims to a class of store managers who did not receive overtime pay from the now-bankrupt electronics retail chain under a settlement a Delaware federal bankruptcy judge approved Wednesday.

  • February 11, 2016

    Madoff Trustee Fights Proposed $64B Investor Suit

    The trustee overseeing the liquidation of Bernie Madoff’s shuttered securities firm urged a New York bankruptcy judge to block a proposed $64 billion class action suit against former Madoff associate Jeffry Picower, saying Thursday the action is blocked by a 2011 settlement.

  • February 11, 2016

    Ropes & Gray Nabs Global Restructuring Atty From DLA Piper

    A restructuring specialist recently made the leap to Ropes & Gray LLP in New York, where he will bring extensive international and stateside experience to work as partner in the business restructuring group after working at DLA Piper in a similar role.

  • February 11, 2016

    Sabra Health Care REIT Sells Bankrupt Hospital In $96M Deal

    Sabra Health Care REIT Inc. has reached a deal to sell its bankrupt hospital in Frisco, Texas, to a subsidiary of HCA Holdings Inc. for $96.25 million, and with that sale will take a steep loss on its investments in the property, according to an announcement from Sabra on Wednesday.

  • February 10, 2016

    Bankrupt KaloBios Faces Fire For Employee Bonus Plan

    Investors suing KaloBios, which hit Chapter 11 weeks after its ousted CEO Martin Shkreli was charged with securities fraud, have taken aim at the embattled and bankrupt drug developer’s employee bonus plan, arguing it’s unnecessary for a company with uncertain prospects for any future revenues.

  • February 10, 2016

    Puerto Rico Bondholder Group Floats Debt Restructure Plan

    A bondholder group holding $17.3 billion in Puerto Rico debt floated a restructuring proposal on Wednesday as the White House continued to push Congressional Republicans to back legislation that would give the island’s municipalities the ability to seek bankruptcy.

  • February 10, 2016

    Texas Justices Told Investor Has Standing In DLA Piper Row

    An Australian financier and investor who lost $1.7 million in retirement funds because he took allegedly negligent advice from his attorneys and granted a loan to a now-defunct company has standing to sue DLA Piper under longstanding state law, the Texas Supreme Court was told in oral arguments Wednesday.

  • February 10, 2016

    LeClairRyan Hit With Malpractice Suit By Defunct Hotel

    The onetime owners of a hurricane-damaged Virginia hotel have accused LeClairRyan of breach of contract and malpractice in insurance coverage litigation, telling a New Jersey court the firm colluded with creditors and improperly spearheaded an involuntary bankruptcy against the hotel.

  • February 10, 2016

    Cravath Takes Lead On Argentina Debt Default Defense

    Cravath Swaine & Moore LLP confirmed Wednesday that Argentina has picked the firm to take over as the country’s lead counsel in long-running bondholder litigation in New York stemming from its 2001 debt default.

  • February 10, 2016

    Texas Appeals Court Axes Atty Fees In Real Estate Blog Row

    A Texas appeals court found Tuesday that when a plaintiff drops claims to avoid having them dismissed as baseless under Texas law, this doesn't make the defendant a prevailing party entitled to attorneys' fees, tossing fees awarded to a real estate blog in a fight with the former president of a homeowners association.

Expert Analysis

  • Asarco Ruling Continues To Rankle Bankruptcy Practitioners

    Benjamin D. Feder

    A recent Delaware decision in the bankruptcy case of Boomerang Tube shows that the impact of the U.S. Supreme Court's fee defense ruling in Baker Botts v. Asarco will not be easily circumvented, says Benjamin Feder of Kelley Drye & Warren LLP.

  • How Does Skadden Stay No. 1?

    Elizabeth Duffy

    Analyzing the reasons why clients choose certain firms reveals a great deal about what is important and valued in the marketplace. Based on interviews with a random sample of over 600 heads of legal in the largest U.S. organizations, Elizabeth Duffy, vice president of Acritas US Inc., identifies the core brand drivers of Skadden Arps Slate Meagher & Flom LLP.

  • OPINION: The Road To Partnership Must Keep Evolving

    Daniel L. Butcher

    In a recent Law360 article it was suggested that promotion to partner was a competition between associates and that taking maternity, paternity or family medical leave could impact an associate's chances at promotion. But this sort of ethos — which may have contributed to law firms’ success in the past — is not the best way to secure the industry's future, says Daniel Butcher, managing partner of Strasburger & Price LLP.

  • A Broad Definition Of 'Value' For Fraudulent Transfers

    Linda J. Z. Young

    In PSN Liquidating Trust v. Intelsat, the Eleventh Circuit held that in the context of constructive fraudulent transfers, “value” may take the form of an economic benefit, either direct or indirect, conferred upon the insolvent debtor by the transferee. The ruling may cause trustees and debtors in possession to pause before deciding to bring constructive fraudulent transfer suits, says Linda Young of Buchanan Ingersoll & Rooney PC.

  • 'Uptiering' As A Strategy To Restructure Oil Cos.

    Jennifer Wisinski

    The key question that many exploration and production companies currently face is what the best strategic options to survive the depressed crude oil price market are. The most notable development in 2015 in out-of-court restructurings has been the use of junior-lien financings and “uptiering” transactions, say attorneys with Haynes and Boone LLP.

  • Why Banks Shouldn't Ignore Fraudulent-Transfer Red Flags

    Mark A. Salzberg

    The bankruptcy case of Sentinel Management should be required reading for all lenders since, in a matter before the Seventh Circuit, two banks’ failure to investigate their borrower’s questionable activity caused them to lose their security and have their secured loans reduced to unsecured claims, say Mark Salzberg and Jeff Cole of Squire Patton Boggs LLP.

  • Credit Default Swaps And Solvency Analysis

    Jeffrey L. Baliban

    A considerable area in solvency analysis relates to fraudulent conveyances in bankruptcy, but a similar analysis can arise in derivative instruments drafted under the International Swaps and Derivatives Association forms. Determining when a corporation actually became insolvent can be crucial to the characterization of payments as either preferential or potentially fraudulent, says Jeffrey Baliban of Citrin Cooperman & Co. Ltd.

  • Common Interest Protection In Commercial Transactions

    Stephen Ram

    The Second Circuit's decision in Schaeffler v. U.S., which involved Schaeffler Group withholding privileged debt restructuring documents from the IRS, falls in line with an emerging consensus of jurisdictions flexibly applying the common interest doctrine to commercial and corporate transactions, says Stephen Ram of Stradling Yocca Carlson & Rauth PC.

  • The Sweet Sound Of A 363

    Steve Gubner

    The idea of a bankruptcy sale of substantially all of a firm's assets under Section 363 of the Bankruptcy Code usually brings to mind a depressed company with potential buyers waiting in the wings to buy the assets at a substantial discount. This does not have to be the case, as evident in the case of California-based DigitalSound, say Steve Gubner and Reed Bernet of Brutzkus Gubner.

  • Expectation Damages Now A Real Possibility In Delaware

    Philip Richter

    The Delaware Supreme Court’s decision in SIGA Technologies v. PharmAthene — stemming from a bridge loan and merger agreement between the two when SIGA was in dire financial straits — changes the calculus for a party considering whether to breach an obligation to negotiate an agreement in good faith as there is now a potential for expectation damages, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.