Bankrupt quarrier Victor Oolitic Stone Co., which does business as Indiana Limestone Co., canceled the scheduled Chapter 11 auction and is set to go with the $26 million stalking horse offer from a unit of private equity firm Wynnchurch Capital, an attorney for the debtor said Tuesday.
Two investors in Oak Rock Financial LLC slapped the auditor of the bankrupt lending company with a suit in New York court Friday over failing to detect a four-year fraud that resulted in more than $100 million in losses.
Seventh Circuit Chief Judge Diane Wood talks to Law360 about managing a court in crisis, surviving two U.S. Supreme Court near-misses, and tailoring crafty dissenting opinions that can change the mind of even the staunchest of ideological opponents.
Telecommunications and marketing company TelexFree Ltd. on Monday sought bankruptcy protection in Nevada, blaming a compensation plan for associates that has sucked the company’s liquidity dry.
An Ohio federal judge on Monday refused to block an attempted clawback of bonuses earned by three former executives of bankrupt Antioch Co., finding there to be a disputed issue of fact as to whether the company was insolvent when the bonuses were awarded.
Energy Future Holdings Corp., the Dallas-based utility company at the center of bankruptcy rumors for several weeks, announced Tuesday that it would miss its deadline to file an annual financial report and that it is still discussing debt restructuring options with creditors.
The city of Detroit has reached an agreement with the organized labor group representing its retired police and firefighters that will trim annual cost-of-living increases to the retirees but spare their current pensions from any cuts, a mediator said Tuesday.
Former Bernie Madoff associates, whom a jury found guilty of aiding the $65 billion Ponzi scheme, asked a New York federal court Tuesday to acquit them, saying there wasn't enough evidence to show criminal knowledge or intent to participate in any crime.
Global Geophysical Services Inc. on Monday announced a settlement that brokers peace between two warring groups of lenders and will provide the seismic data provider with $151.8 million in bankruptcy financing.
At just 37, Damian Schaible of Davis Polk & Wardwell LLP has built a resume that would be the envy of lawyers twice his age, piloting major airlines through Chapter 11 restructurings and helping Wall Street giants craft “living wills” after the financial crisis — work that earns him a spot on Law360's list of rising legal stars.
An Idaho federal jury on Monday found the former top brass of bankrupt real estate firm DBSI Inc. guilty on dozens of fraud charges, following accusations they were running a Ponzi scheme under the guise of an investment company supposedly worth $105 million.
Private equity-owned data technology company Edgenet Inc. asked the Delaware bankruptcy court Friday to approve an auction plan for a portion of its assets, with a unit of Parallax Capital Partners LLC putting in a stalking horse bid of $6.5 million plus certain assumed liabilities.
Bankrupt electric-car maker Fisker Automotive Holdings Inc. reached an agreement to pay creditor Hybrid Tech Holdings LLC and other secured lenders $8 million to cover administrative claims and to put another $20 million into a liquidating trust, according to a Friday filing in Delaware bankruptcy court.
At just 35, Cleary Gottlieb Steen & Hamilton LLP's Luke Barefoot has already advised on various complex bankruptcies and restructurings, including the Overseas Shipholding Group Inc. case in which Barefoot helped get a U.S. Chapter 11 proceeding recognized in South African courts for the first time, cementing his spot on Law360's list of top young bankruptcy attorneys.
Momentive Performance Materials Inc., a silicone and quartz producer controlled by private equity firm Apollo Global Management LLC, on Sunday filed for bankruptcy protection in New York, with a prenegotiated plan to cut its debt by $3 billion.
A Delaware bankruptcy judge gave women’s clothing retailer Coldwater Creek Inc. the interim OK on Monday for up to $75 million in post-petition financing, and the green light to make speedy preparations for its plan to liquidate its inventory in going-out-of-business sales to start before Mother's Day.
GMAC Mortgage LLC and bankrupt Residential Capital LLC have agreed to pay $2 million to settle a wage-and-hour class action alleging they stiffed workers on proper meal and rest breaks in violation of the Fair Labor Standards Act, according to documents filed in Washington federal court.
Whether winding down a managed care provider in receivership or successfully defending a nightclub operator from a $5 million clawback suit, Jeffrey Snyder has shown himself a dab hand at insolvency issues, earning the Bilzin Sumberg Baena Price & Axelrod LLP partner a place among eight young bankruptcy attorneys recognized by Law360.
A Delaware bankruptcy judge on Friday approved debtor-in-possession financing that private-equity owned mobile phone activator Simplexity LLC says is crucial to fund its planned $10 million stalking horse sale to Wal-Mart Stores Inc., despite objections from unsecured creditors that say the facility solely protects lender Fifth Third Bank.
The First Circuit on Friday reinstated a bankruptcy court order confirming the Chapter 11 reorganization plan of the developers of the luxury W Boston Hotel, rejecting the Mortgage Bankers Association's claims that the confirmation should remain vacated based on an interest calculation error.
Jewel litigation has been filed after every major law firm bankruptcy in the past 10 years, including Lyon & Lyon, Brobeck, Coudert, Thelen, Heller and Howrey. These lawsuits have produced years of litigation, with similar suits expected in the Dewey bankruptcy. Despite the legal uncertainties surrounding such claims, hiring firms can take steps now to minimize their Jewel risk for any lateral hire, say attorneys with Arnold & Porter LLP.
While the actual breaches are unknown, Heartbleed has the potential to expose all of a lawyer's files stored or transmitted online. The bug raises professional responsibility questions and offers confirmation of the greatest anxieties that the legal industry has about online practice. In fact, the timing is poor for many legal tech providers, following a general industry warming to cloud offerings, says David Houlihan of Blue Hill Research Inc.
The outcome of any conflict between Sections 363 and 365 of the Bankruptcy Code would likely turn on the approach adopted by the bankruptcy court. Although in the Spanish Peaks Holdings II matter the court appeared to side with cases holding that Section 363 trumps 365, the facts were unique enough that most courts applying a similar fact-intensive framework might decide that the 365 rights of a lessee or a licensee should be preserved instead, says Kate Doorley of Weil Gotshal & Manges LLP.
In a distinct trend, federal courts have found that, depending on the text of the underlying plan documents, unpaid employer contributions due under a collective bargaining agreement may be viewed as plan assets, such that the representatives of an employer who exercise fiduciary control over those plan assets can be held individually liable for the unpaid amounts — together with interest and penalties — under the Employee Retirement Income Security Act, say Neal Schelberg and Aaron Feuer of Proskauer Rose LLP.
Why do the majority of speakers get polite claps at the end of their talks while a few select others receive rousing applause? Having given more than 375 presentations to legal groups, bar associations, Fortune 500 companies and corporate gatherings, I’ve learned a few things about what not to do. Remember, great speakers don’t tell “war stories.” They don’t even give examples from their own practice, says Michael Rubin of McGlinchey Stafford PLLC.
A Seventh Circuit opinion in a dispute related to the Sentinel Management Group bankruptcy reinforces the importance of the portability of investment accounts carrying commodity customer funds, and recognizes the choice made by Congress to prioritize the stability of the financial markets ahead of other creditors when an investment firm becomes insolvent, say attorneys with Foley & Lardner LLP.
Many debtors feel that they are at the mercy of the credit markets when it comes to negotiating an exit facility. However, with proper foresight and planning, a debtor can substantially improve its prospects for obtaining successful exit financing. Whenever possible, a corporate borrower should begin working with its restructuring advisers even before entering Chapter 11, say Paul Keenan Jr. and Nancy Mitchell of Greenberg Traurig LLP.
A canvass of approved consensual cash collateral orders in recent large bankruptcy cases, including In re Residential Capital LLC, suggests the rarity, even nonexistence, of preordained methodologies for valuing collateral for the purpose of calculating an adequate protection claim, say attorneys with Morrison & Foerster LLP.
Multiple defendants are frequently jointly sued in avoidance actions, and there is no federal statutory provision that insulates a settling defendant from indemnity and contribution claims from co-defendants. But incorporating the California Code of Civil Procedure’s Section 877.6 into the case might do the trick, says Barry Freeman of Jeffer Mangels Butler & Mitchell LLP.
The last thing lawyers want to worry about is fumbling with trial exhibits once they get to the courtroom. Luckily, there are a wide variety of options for using technology to facilitate trial presentation. Each has benefits and drawbacks, but the most important thing is finding software that the trial lawyer is comfortable and confident running, say David Russell and Jeffrey Atteberry of Jenner & Block LLP.