Bankruptcy

  • July 2, 2015

    Molycorp Gets Nod For $22M Interim Loan From Oaktree

    A Delaware bankruptcy judge gave Molycorp Inc. the green light for $22 million in much-needed financing on Thursday, allowing the rare-earth company go with a interim debtor-in-possession loan from secured creditor Oaktree Capital Management LP rather than a competing financing package offered by bondholders.

  • July 2, 2015

    Auto Supplier Chassix's Ch. 11 Plan Gets Green Light

    A New York bankruptcy judge said Thursday he will approve Chassix Inc.'s strategy for slashing $463 million in debt as it looks to emerge from Chapter 11, rejecting two creditors' last-minute objection that the deal gave owner Platinum Equity LLC a sweetheart release.

  • July 2, 2015

    JPMorgan Asks FCC To Back LightSquared Bid Despite Felony

    JPMorgan Chase & Co. urged the Federal Communications Commission in a filing made public Thursday not to block its bid to take an equity interest in LightSquared Inc. following a recent antitrust settlement, saying the relevant conduct was not communications-related and had been rectified.

  • July 2, 2015

    Golden County Foods Gets Nod For $37M Bankruptcy Sale

    A Delaware bankruptcy judge on Thursday blessed Golden County Foods Inc.'s $37.2 million sale to industry rival Monogram Appetizers LLC, the result of an auction that boosted the sticker price by more than $15 million.

  • July 2, 2015

    Borders Gift Card Holders Ask Justices To Fix Mootness Split

    Borders Group Inc. customers who lost out on $210 million in gift cards after the company went bankrupt have asked the Supreme Court to hear their case, saying the 11 circuit courts have 11 different rule sets governing when to dismiss a bankruptcy claim appeal.

  • July 2, 2015

    Montgomery McCracken Adds 2 Litigation Partners In Philly

    Montgomery McCracken Walker & Rhoads LLP announced on Wednesday that it has expanded its litigation department in Philadelphia with the addition of two partners coming from Anderson Kill PC and Kaufman Coren & Ress PC with several decades' worth of experience in commercial litigation and related fields.

  • July 2, 2015

    Atkinson Andelson Adds Fox Rothschild IP Litigator

    California firm Atkinson Andelson Loya Ruud & Romo has bolstered its commercial and complex litigation group with the addition of a Fox Rothschild LLP attorney with a specialty in intellectual property law and experience in entertainment, real estate and bankruptcy cases.

  • July 1, 2015

    Dreier Trustee Settles With Diamond McCarthy In Fee Row

    Former Diamond McCarthy LLP attorney Sheila M. Gowan settled a dispute in Texas state court with her former firm over $1.4 million in fees she generated as Dreier LLP's Chapter 11 trustee, Gowan confirmed on Wednesday.

  • July 1, 2015

    $3.5B Bahamas Resort Gets Interim Nod For $80M DIP

    Unfinished Bahamas resort complex Baha Mar got the blessing of a Delaware bankruptcy judge Wednesday for a slate of first-day motions, including preliminary approval of an $80 million financing package, designed to carry the ambitious $3.5 billion project through its final stages.

  • July 1, 2015

    Straub Sues Stockton University Over Showboat Dispute

    As the clock ticks toward the would-be $26 million sale of shuttered Showboat Atlantic City, embattled casino buyer Glenn Straub has taken seller Stockton University to state court over confusion on whether the boardwalk property can operate as a casino.

  • July 1, 2015

    Creditors Can Challenge Completed Ch. 11 Plan, 9th Circ. Says

    An appeal by an objector to a bankruptcy plan may still be heard after the plan takes effect, so long as the objector tried diligently to pursue its line of objection and there might be a solution for relief that wouldn't harm any innocent third parties, the Ninth Circuit ruled Wednesday.

  • July 1, 2015

    PREPA, Creditors Strike $415M Deal To Avert Default

    Distressed energy provider Puerto Rico Electric Power Authority said Wednesday that it will make a $415 million payment to cover the principal and interest on outstanding power revenue bonds and that it obtained extensions on other outstanding debt.

  • July 1, 2015

    Banks Face Pressure To Improve Living Wills

    Big banks are facing pressure to improve the clarity in living wills they submitted Wednesday to federal banking regulators, and are likely to face punishments if the resolution plans do not improve from previous efforts, a former top Federal Deposit Insurance Corp. official said.

  • July 1, 2015

    Boomerang Tube Floats Ch. 11 Plan To Swap Out $214M Debt

    Boomerang Tube LLC filed its Chapter 11 plan and disclosure statement on Tuesday, proposing to split the company in two and convert $214 million in term debt into equity and notes in the new companies.

  • July 1, 2015

    Freedom Likely To Win Judge's Approval Of $2.5M Deal

    A West Virginia federal judge said Wednesday he’s likely to approve a $2.5 million deal that Freedom Industries Inc. reached in its Chapter 11 proceedings with creditors and the state Department of Environmental Protection, according to a news report.

  • July 1, 2015

    5th Circ. Wants Texas Court's Take On Golf Channel Ponzi Ads

    The Fifth Circuit on Tuesday asked the Texas Supreme Court to clarify a Texas Uniform Fraudulent Transfer Act section, after the Golf Channel urged the circuit to reconsider allowing the R. Allen Stanford Ponzi scheme receiver to sue the channel for about $6 million over advertising payments.

  • July 1, 2015

    Greece Sends Creditors Mixed Messages As Debt Vote Nears

    Greece Prime Minister Alexis Tsipras sent the nation's creditors mixed messages Wednesday, urging citizens to reject a bailout package floated by European Union leaders hours after he said in a letter that the country would accept the basic framework of the deal.

  • July 1, 2015

    Coal Miner Says Regulation Pushed It Into Ch. 11

    Coal miner JW Resources Inc. filed for Chapter 11 bankruptcy protection Tuesday, saying in court papers that “burdensome” regulations on the coal industry have decreased demand for the product and made the company’s operations too costly.

  • June 30, 2015

    EFH Creditors Want Plan For Asbestos Claims Retooled

    Unsecured creditors of Energy Future Holdings Corp. told a Delaware bankruptcy judge on Monday that the power giant must improve its program for dealing with asbestos-related injury claims, saying EFH's proposed bar date process threatens to harm creditors' rights.

  • June 30, 2015

    Greek IMF Default Not 'Another Lehman,' But Worries Linger

    After Greece’s historic default on a €1.55 billion ($1.7 billion) International Monetary Fund payment that was due Tuesday, experts say fallout from the high-stakes showdown isn’t likely to disturb European capital markets in the near term, though long-term uncertainties linger.

Expert Analysis

  • Collateral Interests In Insurance: Confusing Territory

    Peter C. Blain

    Collateral interests in insurance policies often significantly enhance a lender's secured position and having a valid interest in an insurance policy may be important in determining the extent of a lender's rights in a bankruptcy proceeding. However, there is no single established set of ground rules for a lender to follow to create and perfect liens in the debtor's life or commercial insurance policies, says Peter Blain at Reinhar... (continued)

  • Del. Defines Derivative Standing Of Creditors Committees

    Sharon L. Levine

    Given a recent decision in the Standard Register Chapter 11 case allowing a creditors committee to pursue claims in connection with an acquisition, it now seems likely that in certain cases, a debtor’s officers and directors cannot claim they are justified in deciding not to bring suit against themselves, say Sharon Levine and Anthony De Leo of Lowenstein Sandler LLP.

  • A New Option For Restructuring Bonds?

    Devi Shah

    A recent English High Court decision in the case of DTEK Finance BV shows that European and U.S. issuers of bonds governed by New York and other U.S. law may be able to use an English scheme of arrangement to restructure them, say Devi Shah and Henry Glen of Mayer Brown LLP.

  • What Bankruptcy Trustees Need To Know About Bitcoin

    Andrew M. Hinkes

    Bitcoin and other digital currencies are revolutionary mediums of exchange. Understanding how to identify, trace, analyze and liquidate bitcoin and digital currencies will be a requirement for any bankruptcy trustee in the 21st century, say Andrew Hinkes and Isaac Marcushamer of Berger Singerman LLP.

  • Filing Class Actions Against Wage-Dodging Trucking Cos.

    Brian S. Kabateck

    Truck drivers pursuing class actions against trucking companies should not be discouraged by the recent trend of these companies attempting to avoid paying wages owed by filing for bankruptcy. Attorneys should investigate which individual controls employees’ wages, hours or working conditions and name that individual as a second employer-defendant, say Kabateck Brown Kellner LLP's Tsolik Kazandjian and Brian Kabateck, a former pres... (continued)

  • The Top 3 New Do’s And Don’ts For Law Firm Websites

    Stephan Roussan

    In legal marketing circles, there are few topics peddled about more than “hot tips” for improving your law firm’s website. Google it. You’ll find more advice than you could ever digest. However, there are larger trends in technology, culture and user behavior that are impacting firms in very significant ways and are not being talked about nearly as much as they should be, says Stephan Roussan, founder of consulting and web developm... (continued)

  • A Battle In The Making: Second-Lien Vs. High-Yield Debt

    Raniero D’Aversa

    As oil and gas companies become increasingly leveraged in an effort to alleviate liquidity constraints, parties such as holders of second-lien debt and high-yield bonds will be front and center in negotiating a company’s restructuring plan — a process that will likely be contentious as they attempt to allocate unencumbered assets between them, say Raniero D’Aversa and Peter Amend of Orrick Herrington & Sutcliffe LLP.

  • Retail Distress In The 2015 Buying Season

    Sara Chenetz

    The ongoing ramp-up to the 2015 holiday season includes a seeming record number of retail and mall closures and bankruptcies. This should put retailers, their vendors, suppliers and landlords on alert, say Sarah Chentz and John Penn at Perkins Coie LLP.

  • Bankruptcy Avoidance Risks In Oil And Gas Transactions

    Elizabeth Y. Spencer

    Over the past several months, the economics of the oil and gas industry have changed dramatically. With lower energy prices, so too have profit margins and working capital fallen, highlighting two often confused provisions of bankruptcy law that may potentially impact relationships with distressed companies — fraudulent transfers and preferences, say attorneys at Holland & Hart LLP.

  • Continuing Care Communities Reform Comes To Florida

    Beth A. Vecchioli

    In the last 10 years, there have been reports of a number of continuing care communities failing and declaring bankruptcy throughout the country. This has led to a greater regulatory focus on the solvency of CCCs and the terms of the contracts they offer. Particularly in Florida, state regulators have increased their scrutiny of CCC refundable-type contracts, says Holland & Knight LLP's Beth Vecchioli, a former staffer in the Flori... (continued)