The bankruptcy trustee for Bernard Madoff’s investment fund asked a New York bankruptcy judge on Thursday for time to replead cases against Credit Suisse Group AG and others in light of new standards handed down from the district court.
The Ninth Circuit on Friday determined a Chapter 13 debtor should be repaid for attorneys' fees incurred defending a creditor's appeal of a bankruptcy court ruling, finding the fees were recoverable because they constituted actual damages resulting from a violation of the automatic stay.
More than Detroit’s financial future is at stake in the battle royale that will kick off Tuesday on the city’s proposed restructuring, attorneys say — it will also dictate how distressed municipalities nationwide can fix their lopsided balance sheets in the face of runaway pension costs.
Ernst & Young LLP has agreed to return $100,000 in fees it received from the Revel Casino Hotel prior to its second bankruptcy filing in order to resolve prepetition claim concerns, according to court documents filed days before the beleaguered Atlantic City casino closes its doors.
The U.S. Tax Court on Thursday said a couple who loaned more than $4 million to a now-defunct mortgage company cannot deduct the money as a bad debt or a loss caused by theft because they had an avenue to try to recover the money.
The International Capital Market Association on Friday issued revised guidelines for sovereign debt securities in order to avoid a repeat of Argentina’s long-running fight with holdout creditors, which led to the country’s second default in 13 years.
Syncora Holdings Ltd. made “scandalous and defamatory” claims against two mediators, one a sitting federal judge, who brokered an $816 million settlement at the heart of Detroit’s restructuring plan, the city’s bankruptcy judge ruled Thursday, opening the bond insurer’s team at Kirkland & Ellis LLP up to possible sanctions.
Pennsylvania told a bankruptcy court Thursday that the bankrupt developer of a planned Foxwoods casino project that fell through in 2010 is now improperly trying to revive a $50 million gaming license dispute with the state and sought dismissal of the debtor's adversary proceeding.
The Chapter 7 trustee winding down energy investment holding company Ampal-American Israel Corp. lobbed a lawsuit on Wednesday demanding a combined $39 million from former executives who allegedly swung imprudent consulting and loan payments to the Ampal CEO’s Israeli firm.
Trusts seeking to kill a $10 million clawback suit by Madoff wind-down trustee Irving Picard have reiterated their case for dismissal on grounds that Picard’s failure to allege bad faith dooms the suit, based on their reading of an April ruling by Judge Jed Rakoff.
Victims of Bernard Madoff's Ponzi scheme launched a putative securities class action in Florida federal court Thursday seeking $11 billion in damages from the estate of Jeffry Picower, alleging he help perpetuate and conceal the fraud.
Noteholders that lost a closely watched battle for some $200 million in make-whole payments from bankrupt Momentive Performance Materials Inc. formally requested their votes be switched to support its Chapter 11 exit plan, a maneuver aimed at scoring cash recoveries instead of refinanced debt.
The Third Circuit on Thursday affirmed a district court’s ruling that Visteon Corp. retirees formerly belonging to the United Auto Workers were not entitled to a reinstatement of health care benefits, saying the union made the “calculated choice” to not appeal a bankruptcy court order allowing the company to terminate the benefits.
LightSquared Inc. won approval Thursday from a New York bankruptcy court for $120.6 million in post-petition financing, the latest step in the wireless networking company's drawn-out attempt to reorganize its finances.
New York state has withdrawn a $1.9 million proof of claim it had lodged in textbook publisher Cengage Learning Inc.’s Chapter 11 bankruptcy case, a state tax representative told a federal bankruptcy court on Thursday.
A New York bankruptcy judge on Wednesday enforced a reorganization plan that pays 25 cents on the dollar to U.S. noteholders in distressed Brazilian utility Rede Energia SA, dashing their claims that the foreign workout offends U.S. bankruptcy principles.
TD Bank NA on Tuesday objected to the enforcement of a $7 million settlement with a former investor in Scott Rothstein's $1.2 billion Ponzi scheme, saying that though they had agreed in principal on a deal, the parties had not yet hammered out an order enforcing the terms of the settlement.
A New York federal judge on Wednesday refused to dismiss a complaint brought by liquidators of Australia-based Octaviar Administration Pty Ltd. against Fortress Investment Group LLC and affiliates over an allegedly fraudulent conveyance, finding defendants’ willingness to move the case to Australia a contradiction of an earlier position.
Power giant Energy Future Holdings Corp. said Wednesday that within weeks it intends to unveil to the Delaware bankruptcy court details of a plan to auction off the equity in a reorganized company, a day after NextEra Energy Inc. withdrew its proposal for a comprehensive reorganization.
A Swedish court on Thursday rejected National Electric Vehicle Sweden AB's bid for a reorganization, which the company — owner of Saab's assets after its 2012 bankruptcy — had said earlier in the day was necessary to avoid surrendering assets to impatient creditors and buy time for negotiations.
Creditors considering an involuntary bankruptcy filing with the goal of buying a debtor’s assets in a Section 363 sale or seeking a strategic advantage over the debtor will need to consider an Eleventh Circuit ruling in the case of Global Energies LLC before embarking on such a strategy, say Harris Winsberg and Stephen Roach of Troutman Sanders LLP.
The departure of attorneys from large firms is a trend that has increased as a result of the Great Recession and its aftermath, and boutique firm partners who previously worked at large firms understand the potential large-firm pitfalls, say attorneys with Levine Kellogg Lehman Schneider & Grossman LLP.
A series of discrete amendments to the Uniform Fraudulent Transfer Act — now renamed the Uniform Voidable Transactions Act — should promote better uniformity across secured lending and bankruptcy practices and provide better guidance to both courts and litigants about how avoidance actions should be adjudicated, say Jonathan Korman and Laura Amato of Reed Smith LLP.
For jurisdictions where the tax authority first “forecloses” on property in satisfaction of outstanding property taxes and then resells the property, there is a clear risk that the authority could be forced to pay “market value” less the amount of the delinquent property taxes, particularly if the property owner subsequently files for bankruptcy, says Vicki Harding of Pepper Hamilton LLP.
Nearly 70 years before the U.S. Supreme Court decided Stern v. Marshall, oil tycoon J. Howard Marshall undertook a data-driven analysis of the then-existing bankruptcy regime that was well-ahead of its time, so as to initiate some proposals for reform and make the bankruptcy process more fair and efficient, say Doron Kenter and Kyle Ortiz of Weil Gotshal & Manges LLP.
Much has been written recently about the unfinished-business doctrine, but what does it all mean for firms that are not planning on going out of business? asks Mark Zebrowski of Morrison & Foerster LLP.
In U.S. Bank National Association v. Verizon Communications, the Fifth Circuit found competing valuations helpful in dismissing a litigation trustee’s $2.5 billion fraudulent transfer suit against a Chapter 11 debtor’s corporate parent. An adversarial system, therefore, not ideology, worked for the defendants, says Michael Cook of Schulte Roth & Zabel LLP.
"If you follow the philosophy of saving everything you're just multiplying exponentially the costs and risks of litigation and investigations," says Robert Owen, partner in charge of Sutherland Asbill & Brennan LLP's New York office and president of the Electronic Discovery Institute.
The Delaware bankruptcy court’s holding in the case of Ormet Corp. that the express provisions of Section 363(f) are not trumped by the policy considerations embodied in the Employee Retirement Income Security Act and the Multiemployer Pension Plan Amendments Act should give comfort to debtors and purchasers of assets in a free-and-clear sale, says Christopher Hopkins of Weil Gotshal & Manges LLP.
The Second Circuit ruling that Bernard L. Madoff bankruptcy trustee Irving Picard may not block two large settlements involving Madoff feeder funds is welcome news for institutions that invested in “intermediate” funds that are still solvent. Commentators, however, fully expect that Picard will continue to appeal adverse decisions, including this most recent ruling, say Jonathan Sablone and Danielle McLaughlin of Nixon Peabody LLP.