A Delaware federal judge on Tuesday rejected a bid by SemGroup LP's litigation trustee to reinstate clawback claims targeting more than $55 million paid to equity holders prior to the energy company's descent into Chapter 11, finding the bankruptcy court had properly denied the claims.
A New York bankruptcy judge on Tuesday cleared a group of Momentive Performance Materials Inc. bondholders of stepping on higher-ranking creditors’ collateral rights by championing a restructuring plan that will hand the junior group control of the company.
North Carolina-based chemical company Reichold Inc. and its U.S.-based affiliates filed for Chapter 11 protection Tuesday in Delaware, listing up to $1 billion in debt and planning a stalking horse sale to its bondholders, which are funding the case.
A bankruptcy auction for Atlantic City, New Jersey’s Revel Casino Hotel grew contentious on Tuesday as a Florida developer added $5 million to his $90 million stalking horse bid to fend off a competitor and demanded a judge sanction Revel, calling the auction opaque and unfair.
A Delaware bankruptcy judge on Tuesday agreed to hold an expedited hearing on Trump Entertainment Resorts Inc.'s request to stop pension payments to the National Retirement Fund that are required by a collective bargaining agreement for the Trump Taj Mahal casino in Atlantic City, New Jersey.
The city of Detroit is set to receive $325 million in financing from Barclays PLC when the troubled metropolis exits bankruptcy, according to documents filed on Monday, $50 million more than was initially planned.
The Republic of Argentina on Tuesday deposited $161 million in a local bank to make interest payments to bondholders who agreed to debt restructurings, a step designed to skirt a New York federal judge's ruling that those bondholders can only be paid if holdout hedge funds are also compensated.
A Delaware federal judge ruled Monday that the bankruptcy court was right to clear Jevic Transportation Inc.’s owner Sun Capital Partners Inc. of liability connected to class action claims from laid-off employees, ruling the private equity firm did not bear ultimate responsibility for the debtor’s decision to close.
A Maryland bankruptcy judge has pared a nearly $2 billion suit by Thornburg Mortgage Inc.'s trustee alleging that units of Citigroup Inc. and other banks made unfair margin calls and other improper agreements that brought the mortgage lender to its knees, finding that the agreements central to some of the claims are safe-harbored.
The judge overseeing Stockton, California’s proposed debt restructuring is poised to address whether cities’ crushing pension obligations can be reduced in bankruptcy, a vexing question that could upend the balance of power between bankruptcy courts and elected municipal officials.
Nutritional supplement maker Natrol Inc. on Monday asked a Delaware bankruptcy judge to bless a slate of bid procedures establishing a timetable for a Section 363 sale, including a November auction of the company's assets.
Aaroma Holdings LLC has urged the U.S. Supreme Court to uphold a Third Circuit decision freeing it from liability for injuries allegedly caused by a food additive manufactured by a company whose assets it purchased in 2010, arguing the plaintiffs’ claims belonged to the now-bankrupt company’s estate.
A New York federal judge on Monday held Argentina in contempt of court for taking steps to evade his orders that bondholders who agreed to debt restructurings can only be paid if holdout hedge funds are also compensated, calling such plans illegal.
Bankrupt Trump Entertainment Resorts Inc. moved Friday to reject its contract with unionized casino employees, saying a new labor deal is a key element in a designed Chapter 11 plan that would see Carl Icahn inject $100 million into the ailing Trump Taj Mahal in Atlantic City.
A Louisiana federal judge on Friday tossed a consolidated securities class action alleging bankrupt ATP Oil & Gas Corp.’s top executives misled investors ahead of a $1.5 billion note exchange about its liquidity and business prospects following drilling moratoriums enacted after the Deepwater Horizon oil spill.
Defunct Nortel Networks Corp. asked a Delaware bankruptcy judge Friday to grant it protection against subpoenas it has received in connection with patent infringement litigation involving Rockstar Consortium LP, the buyer of its patent portfolio, arguing that the requests would cause it great burden and expense.
Ford Motor Co., Honeywell International, Volkswagen Group of America Inc. and a slew of insurers urged a North Carolina bankruptcy judge Thursday to reject a bid to seal aggregated estimations of past and pending mesothelioma claims against Garlock Sealing Technologies LLC, saying the information should be released to the public.
British energy titan BG Group PLC has urged the U.S. Supreme Court to block Argentina's latest bid to undo the company's $185 million investment arbitration award, asserting that the country presents minor factual issues that do not warrant review by the justices, who have already weighed in on the case.
The U.S. Supreme Court has received four amicus briefs in a case concerning the extent of bankruptcy courts' power, with most amici agreeing that a recent Seventh Circuit decision has taken too much power away from bankruptcy courts in noncore proceedings.
Trade creditors of bankrupt Associated Wholesalers Inc. took issue Friday with the cooperative food distributor's proposed $193 million debtor-in-possession facility, claiming the credit package as structured will give a “windfall” to lenders and shut out priority vendor claims.
A recent nonbankruptcy Third Circuit decision, Aleynikov v. Goldman Sachs Group Inc., may clarify what it means to be an officer of a debtor, and it would appear that the presumption established by the case of Foothills Texas may no longer be followed, say Shmuel Vasser and Shana White of Dechert LLP.
Few people understand the complexities of defined benefit pension plans, particularly those of distressed companies. For attorneys who work with clients or lenders in the automotive equipment business, these issues can be difficult to navigate without guidance on the complicated and sometimes arcane issues involved, say Laura Marcero and Jim Lukenda of Huron Consulting Group.
The overlap of Section 503(b)(9) of the Bankruptcy Code and the new-value defense gives rise to an interesting question, and the Eastern District of Virginia has been clarifying the law in this area, including most recently in Siegel v. Sony Electronics Inc. — related to the Circuit City Stores Inc. bankruptcy. However, case law on this topic remains unresolved, says Debora Hoehne of Weil Gotshal & Manges LLP.
Lenders and their attorneys are conditioned to believe that being oversecured is as good as life gets for a creditor. But post-closing confidence in a job well done can quickly evaporate if the borrower files a bankruptcy case intending to sell the collateral, say Michael Venditto and Sarah Kam of Reed Smith LLP.
The Massachusetts high court’s interpretation of the state’s fine art consignment law — in a case involving a bankrupt art dealer — should bolster artists’ rights, and the case should be a strong encouragement for all sides to get a consignment agreement in place, says Nicholas O'Donnell of Sullivan & Worcester.
It is advisable for hospitals entering Chapter 11 for the purpose of effectuating a sale or other transaction to have a potential strategic partner lined up at the time of filing, which will provide much-needed certainty for not only the hospitals, but also patients, residents, physicians, employees and suppliers, say attorneys with DLA Piper.
Like "big data" and other effective software marketing buzzwords, “cloud” makes something that is very complex sound simple — and even friendly. Most attorneys are not prepared to dig into the distinctions between public, private and hybrid cloud models, or the niceties of how or where their data is transmitted and stored, says David Houlihan of Blue Hill Research Inc.
Nothing makes an in-house counsel feel like they are being nickeled-and-dimed more than receiving a $3.50, stand-alone invoice. Forcing anyone to spend time on a $3.50 invoice is, quite frankly, just not cool, says Francis Drelling, in-house counsel at Specialty Restaurants Corp.
Judge Robert Drain’s ruling in Momentive Performance Materials provides yet another stake in the ground that telegraphs to creditors that their underlying contracts need to be more explicit regarding when they are entitled to a make-whole claim, says Jessica Liou of Weil Gotshal & Manges LLP.
Decisions interpreting subordination agreements often serve as a reminder of the importance of using precise language. In the Chapter 11 case of Momentive Performance Materials, potential ambiguity created by four words — “junior in any respect” — opened the door to litigation, says Charles Persons of Weil Gotshal & Manges LLP.