Meatpacker Quantum Foods LLC said Wednesday that it has canceled its planned Chapter 11 auction and is set to seek court approval for the $54 million stalking horse bid from a unit of private equity firm Oaktree Capital Management LP called Raging Bull Acquisition Co. LLC.
In turning to a bankruptcy court for cover from an avalanche of lawsuits over faulty ignition switches, General Motors Co. is setting up a high-profile test of whether post-bankruptcy companies should be allowed to rid themselves of product liability claims through a Chapter 11 asset sale without offering plaintiffs anything in return.
Money Centers of America Inc. and its senior secured lender pushed back against attempts to have a Chapter 11 trustee appointed in its Delaware bankruptcy case, arguing Thursday that do so would scuttle the proposal to sell the debtor's assets in a bankruptcy auction.
A Minnesota federal judge on Wednesday found that Jackson Walker LLP must return to the Federal Insurance Deposit Corp. the remaining amount on a retainer paid by a Minnesota-based bank that collapsed after it tried to convert to a Texas state savings bank.
A U.K. appeals court decided Wednesday that Fairfield Sentry Ltd., which fed billions of investor dollars into Bernard Madoff's notorious Ponzi scheme, couldn't recover payments made to investors who redeemed their shares before the scheme collapsed because certificates documenting the transactions were binding.
A reputed Lucchese crime syndicate associate on Monday sought a mistrial in his prosecution for allegedly draining $12 million from a mortgage lender and forcing its bankruptcy, claiming a New Jersey federal judge infringed his rights and tainted the jury by ejecting him from court.
The U.S. Commodity Futures Trading Commission asked an Illinois federal court on Wednesday to hit bankrupt Peregrine Financial Group Inc. with a monetary penalty of $645 million, nearly three times the amount of total investor losses from the brokerage firm’s nearly 20-year fraud and embezzlement scheme.
An MF Global Inc. customer seeking at least $100 million in damages over the brokerage firm’s collapse may pursue some claims against Jon Corzine and five other top executives, a New York federal judge ruled Wednesday.
Whether he’s representing debtors, creditors, investors or disgruntled former Dewey & LeBoeuf LLP partners, Jeffrey R. Gleit of Kasowitz Benson Torres & Friedman LLP plants himself wherever litigation and corporate work converge, earning him a spot among Law360’s top eight bankruptcy attorneys under 40.
An Ohio federal judge on Monday denied a request by attorneys with Womble Carlyle Sandrige & Rice LLP for $155,725 in reimbursement for representing bankrupt defense contractor Star Dynamics Corp. in its ongoing Chapter 11 case.
Bankrupt Japanese bitcoin exchange Mt. Gox has abandoned its plans to seek civil rehabilitation under bankruptcy protection and is moving forward with plans for liquidation in Tokyo bankruptcy court, the company said Wednesday.
General Motors said Tuesday it will ask a bankruptcy judge to bar plaintiffs in litigation related to the automaker's ignition switch defect debacle from bringing their claims, saying the 2009 sale order that allowed it to exit bankruptcy protects it from such actions.
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.
The rights, powers and duties of the bankruptcy trustee should be as broad as possible in order to allow the trustee flexibility to operate and address various issues as they arise. While a trust agreement may simply state that a trustee is authorized to carry out the objectives of the trust and implement the terms of the plan, the better practice is to both provide a broad grant of authority and to also identify specific duties, says Ilan Scharf of Pachulski Stang Ziehl & Jones LLP.
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.