Bankruptcy RSS

  • April 24, 2014

    Dolan Co.'s Ch 11. Plan Missing Crucial Info, US Trustee Says

    The U.S. Trustee’s Office blasted Dolan Co.’s Chapter 11 plan and related disclosure statement Thursday in Delaware bankruptcy court, arguing that it is missing crucial financial information and “challenges notions of due process and good faith” by seeking to be fast-tracked even though some claims are impaired.

  • April 24, 2014

    Pittsburgh Riverhounds Ch. 11 Case Won't Get Trustee

    A Pennsylvania bankruptcy judge on Thursday denied a bid by an original stakeholder in the now-bankrupt Pittsburgh Riverhounds soccer stadium to appoint a trustee to oversee the case, saying sufficient cause had not been shown.

  • April 24, 2014

    GM Buyers Ask NY Judge For Recall Info After Calif. Dismissal

    California residents who own General Motors Co. cars asked a New York bankruptcy judge on Wednesday to let their investigation of the company and its recalled cars move forward after a California district judge put their litigation on hold.

  • April 24, 2014

    Verizon Urges High Court To Review IRS' WorldCom Claim

    A Verizon Communications Inc. unit has asked the U.S. Supreme Court to review an Internal Revenue Service claim for millions in excise taxes filed against against WorldCom Inc.'s bankruptcy estate, arguing the claim defied both legal and IRS precedent.

  • April 24, 2014

    Ex-Airline Exec Asks High Court To Ax $8.5M Tax Liability

    A former officer of defunct National Airlines Inc. asked the U.S. Supreme Court on Monday to squash a Ninth Circuit ruling that held him liable for over $8.5 million of National Airlines' unpaid federal excise taxes, saying there was ambiguity over what kinds of behavior trigger the liability.

  • April 24, 2014

    US Airways Pilots Ask High Court To Review ERISA Appeal

    A group of former U.S. Airways pilots on Wednesday told the U.S. Supreme Court that the D.C. Circuit wrongly ruled against them in a dispute over the Pension Benefit Guaranty Corp., which allegedly illegally cut their benefits short when it went bankrupt in 2002.

  • April 24, 2014

    US Seeks To Wrest Control Of Bankruptcy From TelexFree

    The government watchdog tasked with overseeing the bankruptcy of accused Ponzi schemer TelexFree LLC asked Tuesday that a trustee be appointed to take over the Chapter 11 proceedings, in light of allegations that the telecommunications company is nothing more than an elaborate pyramid scheme that preys on immigrants.

  • April 24, 2014

    PBGC Rips Revstone Creditors' 'Wasteful' Bid To Oust It

    The Pension Benefit Guaranty Corp. pushed back Wednesday against an attempt to kick it off the unsecured creditors committee for its proposed deal to settle $95 million in pension-related claims in the Revstone Industries LLC bankruptcy, calling the move “wasteful and unproductive.”

  • April 24, 2014

    Tokyo Court Orders Mt. Gox To Begin Liquidation

    Mt. Gox has begun its liquidation proceedings after a Tokyo court ordered it to do so, and the lawyer tasked with winding down the bitcoin operator’s estate says it’s unlikely that the business will ever operate again, according to a statement released on Thursday.

  • April 23, 2014

    Green Field's Battle-Forged Ch. 11 Plan Gets The Go-Ahead

    A Delaware bankruptcy judge gave the thumbs-up Wednesday to oil field services company Green Field Energy Services Inc.'s Chapter 11 plan, after the major parties in the once-contentious case came to an agreement on how asset-sale proceeds should flow to creditors.

  • April 23, 2014

    Ex-DBSI Execs Say Jurors 'Misled' Amid Acquittal Push

    Four former executives convicted of running a Ponzi-like scheme through bankrupt real estate firm DBSI Inc. on Tuesday asked an Idaho federal court to toss the verdicts against them or grant a new trial, saying prosecutor missteps tainted the jury's decision.

  • April 23, 2014

    Judge Taps Trustee To Oversee Money Centers Ch. 11

    A Delaware bankruptcy judge on Wednesday granted a request by creditors of casino check-cashing firm Money Centers of America Inc. to have a Chapter 11 trustee appointed for ruling that the evidence of financial impropriety “overwhelmingly” supported the need for an outsider to steward the case.

  • April 23, 2014

    Global And Domestic Hurdles May Rattle Auto Parts Sector

    Auto parts maker bankruptcies have largely dwindled since the 2009 industry crisis, but experts say that growing global competition and long-standing pension obligations could lead to a shake-up in the parts manufacturing sector.

  • April 23, 2014

    NJ Judge Trims Attys' Charges In Lucchese Racketeering Case

    A New Jersey federal judge on Wednesday declined to toss racketeering charges against a pair of reputed Lucchese crime family associates accused of draining $12 million from a mortgage lender and forcing its bankruptcy but dismissed counts against two attorneys and another defendant.

  • April 23, 2014

    GM Bankruptcy Cover Violates Due Process, Plaintiffs Say

    Plaintiffs in proposed class actions against General Motors Co. over its infamous ignition switch defect on Tuesday argued that the automaker denied them their constitutional due process rights by hiding the defect for 10 years and then seeking cover from litigation now by invoking its bankruptcy shield.

  • April 23, 2014

    Chartis Can't Dodge Suit Over Losses On $103M Hotel Loan

    A New York judge on Friday refused to dismiss a suit accusing Chartis Specialty Insurance Co. of failing to cover an investment firm for losses from a $103 million loan to a Mexican hotel venture that went belly-up, saying she suspects the Mexican borrowers are shielding themselves through a sham bankruptcy proceeding.

  • April 22, 2014

    Brookstone's Unsecured Creditors Blast $96M DIP Loan

    Unsecured creditors of bankrupt Brookstone Holdings Corp. objected in Delaware bankruptcy court Monday to the specialty retailer’s proposed $96.3 million debtor-in-possession facility, contending that the package benefits the lenders while burdening the company with fees and expenses.

  • April 22, 2014

    Bankrupt Revstone Seeks Approval Of $14M Subsidiary Sale

    Bankrupt auto parts conglomerate Revstone Industries LLC urged a Delaware bankruptcy judge on Monday to approve the more than $14 million sale of Revstone Wallaceburg Canada Inc., a subsidiary that owns more than 25 million shares of diecast tooling manufacturer Aarkel Tool & Die Inc.

  • April 22, 2014

    Money Centers CEO Says Ch. 11 Trustee Would Hurt Recovery

    Bankrupt casino check-cashing firm Money Centers of America Inc.'s CEO and sole director said Tuesday that allegations of mismanagement from creditors hoping to have a trustee appointed were inaccurate and that the court's assignment of an outside overseer would only squash potential recoveries.

  • April 22, 2014

    Event Rentals Plans Sale To Apollo Following Ch. 11 Auction

    Bankrupt party planner Event Rentals Inc. announced Tuesday it would sell itself as a going concern to funds managed by investment giant Apollo Global Management LLC, which beat out the $124 million stalking horse bidder at a Chapter 11 auction.

Expert Analysis

  • What Next For The Detroit Institute Of Arts?

    Kevin P. Ray

    One of the highest-profile aspects of Detroit’s Chapter 9 case has been the intense discussion of the fate of the city-owned Detroit Institute of Arts. While much of the early debate played out in terms of “art versus pensions,” the dynamic of this public conversation has shifted, and the question of the DIA’s fate increasingly lies in a dispute over the value of its art (and how — in fact, whether and to what extent — that value may be unlocked), says Kevin Ray of Greenberg Traurig LLP.

  • Legal Evolution: Back To Business

    Michael S. Lipps

    More often, smaller rivals are taking market share from the largest law firms. In this context, these smaller rivals are not small — they are super-regional firms with between 201 and 750 attorneys, large enough to serve the needs of a global corporation at a better value. And as they grow, they need to be sure they don’t make the same mistakes as the firms from which they’ve taken market share, says Michael Lipps of LexisNexis.

  • Following Fisker, Your Credit Bid Rights May Be Impaired

    Douglas M. Foley

    Although the opinion is fact-specific and the decision is nonprecedential, the Delaware Bankruptcy Court ruling in the case of Fisker Automotive Holdings Inc. may aid debtors and committees looking to oppose a secured lender’s credit bid, say Douglas Foley and Shara Cornell of McGuireWoods LLP.

  • Understanding Various Aspects Of A Bankruptcy Trust

    Excerpt from Lexis Practice Advisor
    Ilan D. Scharf

    In order for a bankruptcy trustee to establish standing to prosecute claims and interests post-confirmation, a plan must specifically describe the claims and interests being retained. However, there are differing opinions as to the required degree of specificity that is needed when identifying such claims, which opens the door to potential legal challenges, says Ilan Scharf of Pachulski Stang Ziehl & Jones LLP.

  • Mandatory Pro Bono Is Not The Answer For Practitioners

     Amanda D. Smith

    The State Bar of California has decided to follow New York's lead and require prospective attorneys to record 50 hours of pro bono service in order to be eligible for admission. While we applaud the intentions behind these initiatives, there are a number of reasons why state bars should limit any mandatory pro bono requirement to this context, rather than extend it to licensed attorneys as some have suggested, say attorneys with the Association of Pro Bono Counsel.

  • Lehman Court Imposes New Limitations On Professional Fees

    Richard L. Epling

    A recent ruling in Davis v. Elliot Management Corp. (In re Lehman Brothers Holdings Inc.) steadfastly asserts that payment of creditors committee members’ professional fees must be subject to the “substantial contribution” standard, even when such payments are agreed upon by the relevant constituencies. This means that payment of indenture trustees’ legal fees could be controversial in future Chapter 11 cases in the Southern District of New York, say attorneys with Pillsbury Winthrop Shaw Pittman LLP.

  • Fla. Court Tips Scales In Favor Of Involuntary Bankruptcy

    James P. S. Leshaw

    In light of a recent Florida state court decision in Sargeant v. Al-Saleh, there is now a question as to whether a Florida court has authority to direct a Florida judgment debtor to turn over any asset physically located outside the state, thus tipping the scales in favor of filing involuntary bankruptcy petitions as a method to invoke the broad powers of a bankruptcy court, says James Leshaw of Leshaw Law PA.

  • 1st Circ. Sets Precedent On Post-Petition Interest

    Hugh McCullough

    The First Circuit’s decision in In re SW Boston Hotel Venture is significant for lenders because it demonstrates that a lender’s right to post-petition interest may change during the course of a bankruptcy case. Importantly, it provides a precedent for lenders to obtain post-petition interest, even when they happen to be undersecured on the date of the filing of the petition, say Hugh McCullough and Bradley Duncan of Davis Wright Tremaine LLP.

  • The Future Of Law Firm PR: The Good, Bad And Ugly

    Paul Webb

    There has been a dramatic change in how public relations professionals interact with the news media to promote or protect a law firm’s brand and reputation. But content is queen and has a bright future in law firm PR — it all begins with a plan that should include goals, performance indicators and a system of assessment, say Paul Webb, director of marketing at Young Conaway Stargatt & Taylor LLP, and Kathy O'Brien, senior vice president at Jaffe PR.

  • Light On The Horizon For 'Bad Boy' Guarantors

    Janice Mac Avoy

    In keeping with commercial real estate guarantors’ expectations of what it means to sign a “bad boy” guaranty, the Southern District of New York’s ruling in CP III Rincon Towers v. Cohen has turned the tide against recent decisions that purport to apply “plain language” in a way that causes commercially unreasonable and absurd results, say Janice Mac Avoy and Gregg Weiner of Fried Frank Harris Shriver & Jacobson LLP.