Bankruptcy

  • October 24, 2014

    Exide Unsecured Creditors Blast Extension For $560M DIP

    The unsecured creditors committee in battery maker Exide Technologies Inc.’s bankruptcy blasted late Thursday the debtor’s move to push back the maturity date on its $560 million debtor-in-possession financing package, arguing it forces the case into a position that only benefits a select few secured noteholders.

  • October 24, 2014

    Bankrupt Olive Oil Co.'s Owners Dodge False Labeling Suit

    A New York federal judge on Friday threw out a class action targeting the owners of bankrupt Kangadis Food Inc. personally for the company’s alleged misleading claims about the purity of its olive oil, citing a lack of evidence linking the Kangadis family to the alleged fraud.

  • October 24, 2014

    Harbinger Slams LightSquared's Bid To Halt $1.9B Suits

    Philip Falcone’s Harbinger Capital Partners LLC said Thursday that the judge presiding over LightSquared Inc.’s never-ending bankruptcy should not rule on the debtor’s bid to halt litigation against the federal government and the global positioning industry over Harbinger’s failed $1.9 billion investment in the wireless venture.

  • October 23, 2014

    Citigroup, Argentina Gird For New Court Date In Bond Fight

    A New York federal judge has set a court date for Argentina's fight to make payments on $8.4 billion in Argentine law-governed bonds — payments whose blockage custodian Citigroup Inc. says could expose it to criminal sanctions in the South American nation.

  • October 23, 2014

    Bankrupt Ormet Gets Nod To Dismiss Ch. 11 Case

    A Delaware bankruptcy judge on Thursday agreed to dismiss former aluminum smelter Ormet Corp.'s Chapter 11 case after approving a credit bid deal to sell its residual assets to private equity lender Wayzata Investment Partners LLC.

  • October 23, 2014

    Apple May Not Be Done With GTAT After It Clears Ch. 11

    Apple Inc. said Thursday that a now-finalized settlement with bankrupt GT Advanced Technologies Inc. could pave the way for the two to resume doing business once GT exits the sapphire production business responsible for its abrupt collapse.

  • October 23, 2014

    San Bernardino Creditors Demand Deadline For Ch. 9 Plan

    A bank and an insurer urged the judge handling San Bernardino, California’s two-year-old bankruptcy case on Wednesday to fix a March 1 deadline for the city to submit a Chapter 9 exit plan, saying that a firm timeline will pressure recalcitrant unions into accepting benefit cuts.

  • October 23, 2014

    Conex Trustee Fails In $2.6M Tax Suit Against Parent Co.

    A Delaware bankruptcy judge on Thursday dismissed a complaint brought by the Chapter 7 trustee for bankrupt oil services contractor Conex International LLC seeking to recover $2.6 million from its parent CopperCom Inc. over its allegedly improper use of Conex's net operating losses for its own tax benefit.

  • October 23, 2014

    Bank Of England Shields Taxpayers In Failed-Bank Plan

    The Bank of England laid out a plan to handle future bank failures Thursday, saying it would act unilaterally over a “resolution weekend” to replace management and initiate stabilization transactions — a regime aimed at shielding taxpayers and the broader financial system from bearing the costs of the collapse. 

  • October 23, 2014

    Bankrupt Vitamin Maker Natrol Gets Nod For Nov. Auction

    A Delaware bankruptcy judge on Thursday gave Natrol Inc. the green light to hold a November auction, blessing a process that allows potential suitors to submit offers either to acquire the nutritional supplement maker's assets or refinance its debt.

  • October 23, 2014

    Wyly Wife Seeks Ch. 11 Protection In Face Of $101M SEC Debt

    The widow of Charles Wyly Jr. filed for bankruptcy protection Thursday, in the wake of a judgment worth hundreds of millions of dollars against the estate of the late Texas tycoon and his brother, Sam Wyly, for allegedly using secretive offshore trusts to trade stocks while evading taxes.

  • October 23, 2014

    SEC Wins Asset Freeze Against Wyly Despite Bankruptcy

    The U.S. Securities and Exchange Commission on Thursday secured a freeze on Texas tycoon Sam Wyly’s assets a day after he filed for bankruptcy in Texas in the face of a looming offshore-trading penalty the SEC has pegged at $198 million.

  • October 23, 2014

    Trump Resorts Gets Final OK To Fund Case With Icahn Cash

    A Delaware bankruptcy judge gave Trump Entertainment Resorts Inc. final approval Thursday to fund its case with cash collateral that secures credit from companies controlled by Carl Icahn after the casino operator resolved issues from unsecured creditors who worried it might dash any hope of a recovery.

  • October 23, 2014

    Backstreet Boys To Recover Master Tapes In Settlement

    The Backstreet Boys have finally put to bed their bankruptcy dispute with boy-band entrepreneur Lou Pearlman and will be given back many masters as well as some cash.

  • October 22, 2014

    Union Blasts Trump Resorts' Bid To Stifle Communications

    An union representing employees at New Jersey's Trump Taj Mahal urged a Delaware bankruptcy judge Wednesday to reject a motion aimed at controlling its communications with casino customers, saying the relief sought by Trump Entertainment Resorts Inc. violates the Constitution and federal labor law.

  • October 22, 2014

    Variant Hearing Delayed After Ch. 11 Deal Draws Fire

    Bankrupt real estate company Variant Holding Co. LLC and creditor Beach Point Capital Management LP had their hopes dashed Wednesday for fast-track approval of a settlement that promised to streamline the case after an interested party's objection prompted a Delaware bankruptcy judge to postpone consideration of the deal.

  • October 22, 2014

    'Real Housewives' Star Can't Serve Term In Halfway House

    A New Jersey federal judge on Wednesday declined to partially convert a 15-month prison sentence for Teresa Giudice, the “Real Housewives of New Jersey” star convicted on fraud and tax evasion charges, saying the court didn't intend for Giudice to serve time in a halfway house.

  • October 22, 2014

    Boart To Recapitalize Under Deal With Centerbridge

    Distressed Australian oil drilling services provider Boart Longyear Ltd. on Wednesday announced a restructuring led by its largest shareholder, Centerbridge Partners LP, that will deleverage its balance sheet by $120 million and loosen the terms of its short-term financing.

  • October 22, 2014

    3rd Circ. Affirms Dismissal Of Virgin Islands Telecom Case

    The Third Circuit on Tuesday upheld a lower court's decision to transfer a complicated settlement dispute involving Norton Rose Fulbright, investment firm Greenlight Capital Inc., a group of insolvent Virgin Islands telecommunications firms and others to bankruptcy court, which then recommended that the case be thrown out.

  • October 22, 2014

    Bankrupt Seegrid Gets Nod For Dec. Hearing On Ch. 11 Plan

    Robotics developer Seegrid Corp. on Wednesday won the blessing of a Delaware bankruptcy judge to present its prepackaged Chapter 11 plan for confirmation in December, despite opposition from its former CEO who sought additional time to fight the plan.

Expert Analysis

  • Economic Impact On Mortgage Lenders From Strip-Off Law

    Ilyse M. Homer

    Recent circuit court case law allowing “Chapter 20” debtors to strip off valueless junior liens on their homes may result in mortgage lenders having their junior-lien rights eviscerated, rendering them general unsecured creditors with no recourse to the collateral securing their indebtedness, say Paul Avron and Ilyse Homer of Berger Singerman LLP.

  • An Associate's Perspective On Business Development

    Jason Idilbi

    Let’s face it: taking friends or acquaintances to Justin Timberlake concerts or golf at the Ocean Course is not how we as law firm associates are going to develop business. Our primary value comes not from out-of-office networking jaunts but from bearing a laboring oar for our partners. Which is why our best approach to business development is more likely from the inside out, says Jason Idilbi of Moore & Van Allen PLLC.

  • NY Court Limits Rights Of Assignees, Indenture Trustees

    David M. Zensky

    A New York state court decision in Cortlandt St. Recovery Corp. v Hellas Telecommunications will complicate the ability of noteholders to pursue a fraudulent conveyance action — one of several reasons the decision is concerning, say attorneys with Akin Gump Strauss Hauer & Feld LLP.

  • New Jurisdictional Issues When Moving To Quash A Subpoena

    Steven Luxton

    The Nevada federal court's recent ruling in Agincourt Gaming LLC v. Zynga Inc. is an important reminder that a nonparty wanting to challenge a civil subpoena should consider carefully the appropriate jurisdiction in which to file a motion to quash under recently enacted Rule 45, say Steven Luxton and Brad Nes of Morgan Lewis & Bockius LLP.

  • 1st Circ. Injects Uncertainty Into Stay Relief Denials

    Douglas R. Gooding

    Both the majority and dissent in a First Circuit ruling in Pinpoint IT Services LLC v. Rivera could be accused of drawing an arbitrary line in the sand — their positions bring uncertainty to bankruptcy appeals of stay relief denials even prior to any consideration of the merits of such appeals, say Douglas Gooding and Meg McKenzie Feist of Choate Hall & Stewart LLP.

  • The Cayman Way Of Identifying, Enforcing Against Assets

    Christopher Russell

    Identifying Cayman Islands-held assets of a defendant or proposed defendant is something of a mixed bag — straightforward in some respects, but difficult, bordering on the impossible, in other respects, say Christopher Russell and Jane Hale-Smith of Appleby Global Group Services Ltd.

  • Accessing The D&O Liability Coverage Of A Bankrupt Corp.

    Mary E. McCutcheon

    A traditional directors and officers insurance policy risks dilution where the company also faces a covered claim. And when the company has filed for bankruptcy, payment of the proceeds for claims against the directors and officers may be delayed, and even impaired, says Mary McCutcheon of Farella Braun & Martel LLP.

  • 2nd Circ. Fails To See The Comity In Chapter 15

    Daniel M. Glosband

    The Second Circuit in the case of Fairfield Sentry Ltd. missed the point that applying Section 363 to the sale of a Securities Investor Protection Act claim — in the context of a Chapter 15 ancillary proceeding — to the same extent that it would apply to property of an estate does not eliminate the principles of comity that infuse Chapter 15, say Daniel Glosband and Kizzy Jarashow of Goodwin Procter LLP.

  • What Litigators Can Learn From Novelists

    Michael H. Rubin

    Many legal briefs are written in impenetrable jargon and begin with an introduction telling the court what it already knows, using words that stem from the 18th century, such as “hereinafter.” Instead, we should approach briefs the way novelists approach their writing, says Michael Rubin of McGlinchey Stafford PLLC.

  • When Your General Contractor Files Bankruptcy

    Vicki R. Harding

    All is not lost when a general contractor files bankruptcy — subcontractors may be able to perfect their construction liens post-petition, as in the case of Branch Banking & Trust Co. v. Construction Supervision Services Inc., says Vicki Harding of Pepper Hamilton LLP.