Sabra Health Care REIT Inc. has reached a deal to sell its bankrupt hospital in Frisco, Texas, to a subsidiary of HCA Holdings Inc. for $96.25 million, and with that sale will take a steep loss on its investments in the property, according to an announcement from Sabra on Wednesday.
Investors suing KaloBios, which hit Chapter 11 weeks after its ousted CEO Martin Shkreli was charged with securities fraud, have taken aim at the embattled and bankrupt drug developer’s employee bonus plan, arguing it’s unnecessary for a company with uncertain prospects for any future revenues.
A bondholder group holding $17.3 billion in Puerto Rico debt floated a restructuring proposal on Wednesday as the White House continued to push Congressional Republicans to back legislation that would give the island’s municipalities the ability to seek bankruptcy.
An Australian financier and investor who lost $1.7 million in retirement funds because he took allegedly negligent advice from his attorneys and granted a loan to a now-defunct company has standing to sue DLA Piper under longstanding state law, the Texas Supreme Court was told in oral arguments Wednesday.
The onetime owners of a hurricane-damaged Virginia hotel have accused LeClairRyan of breach of contract and malpractice in insurance coverage litigation, telling a New Jersey court the firm colluded with creditors and improperly spearheaded an involuntary bankruptcy against the hotel.
Cravath Swaine & Moore LLP confirmed Wednesday that Argentina has picked the firm to take over as the country’s lead counsel in long-running bondholder litigation in New York stemming from its 2001 debt default.
A Texas appeals court found Tuesday that when a plaintiff drops claims to avoid having them dismissed as baseless under Texas law, this doesn't make the defendant a prevailing party entitled to attorneys' fees, tossing fees awarded to a real estate blog in a fight with the former president of a homeowners association.
Arch Coal said Tuesday that it has reached a $75 million agreement with Wyoming environmental regulators that would resolve a dispute over the company’s need to post bonds in order to continue operating its coal mines within the state as it moves to restructure billions in debt.
The post-bankruptcy iteration of General Motors known as New GM claimed in New York federal court Tuesday that a bankruptcy judge erred by allowing a man to sue the company for a fatal accident that occurred before it took over for its now-defunct predecessor, Old GM, based on a mistaken reference.
A Detroit-area automotive dealership told a Michigan federal court Tuesday that Chrysler is telling lies about its refusal to honor a sales agreement that would reboot the dealership’s business after a protracted court battle, asserting that the automaker should be sanctioned.
International music festival promoter SFX Entertainment Inc. scrambled through a revised Chapter 11 funding agreement Tuesday in Delaware federal court, after creditors in the Netherlands moved against a subsidiary there before the company could complete its interim financing deals.
The plan by Chicago’s Yellow Cab unit to sell off its bankrupt business appears to be a poorly disguised attempt by its owners to free themselves from $40 million in liabilities in order to repurchase the company for a pittance, according to objections filed by Clifford Law Offices and the company’s unsecured creditors committee Monday.
Multiple creditors of Life Partners Holdings Inc. on Monday came out against its current Chapter 11 reorganization plan, with one informal group of investors telling a Texas bankruptcy court the estate trustee essentially forced their objection by insisting that he be appointed to control several trusts proposed in the plan.
The trustee for two defunct Madoff feeder funds asked a New York federal judge on Tuesday to reconsider his ruling denying the trustee's bid to intervene in a $55 million deal settling investors' claims that PricewaterhouseCoopers LLP negligently overlooked signs of the massive Ponzi scheme.
The owner of the Orange County Register on Monday sought a California bankruptcy judge’s permission to implement bonuses worth up to $1.5 million for a group of executives and a severance package worth $1.8 million for the newspaper’s employees, saying that both are needed to boost morale and stem turnover.
The U.S. routinely destroys banks without giving them a chance to defend themselves, like one in Andorra that failed after being deemed a prime risk for use by terrorists and criminals to launder money, lead investors in the collapsed bank argued Monday.
Argentina’s proposed $6.5 billion settlement with holdout bondholders was attacked Monday in New York court by plaintiffs' counsel overseeing a series of separate class action lawsuits over the country’s 2001 default, saying the deal would undermine injunctions intended to make sure parties are treated equally.
Former U.S. Bankruptcy Judge Donald Steckroth has been formally tapped to serve as the examiner in the Chapter 11 case of Zucker Goldberg & Ackerman LLC and investigate possible claims against current and former members of the foreclosure law firm and related “insiders,” according to an order Monday.
A Delaware bankruptcy judge on Monday refused to allow Kirkland & Ellis LLP and Klehr Harrison Harvey Branzburg LLP to seek reimbursement from Samson Resources Corp. for any expenses from defending their fees, noting a recent Delaware decision blocked similar cost requests.
Denver-based oil and gas producer Warren Resources said Tuesday that it will file for bankruptcy if it can’t strike an out-of-court restructuring deal with creditors that hold approximately $453 million in outstanding debt, saying it will need financial concessions in order to survive a weak energy market.
A recent Delaware decision in the bankruptcy case of Boomerang Tube shows that the impact of the U.S. Supreme Court's fee defense ruling in Baker Botts v. Asarco will not be easily circumvented, says Benjamin Feder of Kelley Drye & Warren LLP.
Analyzing the reasons why clients choose certain firms reveals a great deal about what is important and valued in the marketplace. Based on interviews with a random sample of over 600 heads of legal in the largest U.S. organizations, Elizabeth Duffy, vice president of Acritas US Inc., identifies the core brand drivers of Skadden Arps Slate Meagher & Flom LLP.
In a recent Law360 article it was suggested that promotion to partner was a competition between associates and that taking maternity, paternity or family medical leave could impact an associate's chances at promotion. But this sort of ethos — which may have contributed to law firms’ success in the past — is not the best way to secure the industry's future, says Daniel Butcher, managing partner of Strasburger & Price LLP.
In PSN Liquidating Trust v. Intelsat, the Eleventh Circuit held that in the context of constructive fraudulent transfers, “value” may take the form of an economic benefit, either direct or indirect, conferred upon the insolvent debtor by the transferee. The ruling may cause trustees and debtors in possession to pause before deciding to bring constructive fraudulent transfer suits, says Linda Young of Buchanan Ingersoll & Rooney PC.
The key question that many exploration and production companies currently face is what the best strategic options to survive the depressed crude oil price market are. The most notable development in 2015 in out-of-court restructurings has been the use of junior-lien financings and “uptiering” transactions, say attorneys with Haynes and Boone LLP.
The bankruptcy case of Sentinel Management should be required reading for all lenders since, in a matter before the Seventh Circuit, two banks’ failure to investigate their borrower’s questionable activity caused them to lose their security and have their secured loans reduced to unsecured claims, say Mark Salzberg and Jeff Cole of Squire Patton Boggs LLP.
A considerable area in solvency analysis relates to fraudulent conveyances in bankruptcy, but a similar analysis can arise in derivative instruments drafted under the International Swaps and Derivatives Association forms. Determining when a corporation actually became insolvent can be crucial to the characterization of payments as either preferential or potentially fraudulent, says Jeffrey Baliban of Citrin Cooperman & Co. Ltd.
The Second Circuit's decision in Schaeffler v. U.S., which involved Schaeffler Group withholding privileged debt restructuring documents from the IRS, falls in line with an emerging consensus of jurisdictions flexibly applying the common interest doctrine to commercial and corporate transactions, says Stephen Ram of Stradling Yocca Carlson & Rauth PC.
The idea of a bankruptcy sale of substantially all of a firm's assets under Section 363 of the Bankruptcy Code usually brings to mind a depressed company with potential buyers waiting in the wings to buy the assets at a substantial discount. This does not have to be the case, as evident in the case of California-based DigitalSound, say Steve Gubner and Reed Bernet of Brutzkus Gubner.
The Delaware Supreme Court’s decision in SIGA Technologies v. PharmAthene — stemming from a bridge loan and merger agreement between the two when SIGA was in dire financial straits — changes the calculus for a party considering whether to breach an obligation to negotiate an agreement in good faith as there is now a potential for expectation damages, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.