European lenders who have agreed to provide a bailout of up to 86 billion euros ($94.9 billion) to Greece struck a hopeful chord Tuesday about brokering a deal by Aug. 20, the deadline for the cash-strapped nation to make a massive debt payment to the European Central Bank.
Trafigura AG, Dutch commodities trader and creditor in the Mineral Park Inc. family of bankruptcy cases, argued Tuesday that Mohave County, Arizona, is improperly trying to shift a $15 million tax claim onto the debtor’s power provider, also under court protection, in the guise of an amended claim.
Government contractor SIGA Technologies Inc. asked a New York bankruptcy judge for a third extension of the exclusivity period, saying it needs breathing room to hammer out with its creditors what it hopes will be a consensual reorganization plan.
Citing the U.S. Supreme Court’s recent landmark ruling on fee shifting, the U.S. trustee objected Monday to applications by unsecured creditors in oil and gas piping manufacturer Boomerang Tube’s Delaware bankruptcy case to use the debtors’ estate to pay Brown Rudnick LLP and others to defend their own fees.
Caesar Entertainment Operating Corp. will have to wait until the end of September to find out whether it can speed up an appeal of a recent decision that threatens to throw its parent company into bankruptcy, as the district judge overhearing the company’s appeal set out a schedule Tuesday.
Bankruptcy and appellate courts can rely on an influential report advocating an overhaul of Chapter 11 to clear up circuit splits over the interpretation of the Bankruptcy Code, including legal quandaries over third-party releases and the sale of intellectual property licenses, a panel of jurists said Tuesday in Washington, D.C.
A Delaware bankruptcy judge declined Monday to put the Chapter 11 plan for power plant company Optim Energy LLC, owned by Bill Gates' Cascade Investment LLC, on hold while self-professed largest creditor Walnut Creek Mining Co appeals confirmation of a reorganization it says includes gerrymandered claims.
The litigation trust for Ocala Funding LLC launched an adversary suit Monday in Florida bankruptcy court against USAmeriBank Inc. over an allegedly fraudulent $5 million transfer executives of parent Taylor Bean & Whitaker Mortgage Corp. made to the bank in 2009 to cover up a massive fraud.
The liquidating trustee for Lehman Brothers Inc. got approval from a New York bankruptcy judge Tuesday to distribute approximately $1.89 billion for customers of Lehman's brokerage business, pushing the total payout for unsecured general creditors to $7.8 billion.
A New York federal judge tossed a suit Tuesday alleging General Electric Capital Corp. knew about and helped facilitate the $3.6 billion Ponzi scheme orchestrated by Tom Petters, finding that plaintiff Ritchie Capital Management LLC’s claims lacked merit and were already covered by the Petters bankruptcy trustee.
A subsidiary of FairPoint Communications Inc. was relieved from having to pay $103,000 in property taxes to the city of Concord, New Hampshire, on Tuesday after the Second Circuit ruled that a 2009 lien on the properties expired when the company’s bankruptcy plan was approved.
The Eighth Circuit refused to revive a suit by a former Farmers Insurance Group agent who defaulted on a loan from his employer and was forced to resign to pay off his debt with a severance bonus on Monday.
New Jersey foreclosure law firm Zucker Goldberg & Ackerman LLC has followed through on its lead-up to bankruptcy, filing a Chapter 11 petition Monday that listed $11.5 million in assets eclipsed by liabilities of $53 million.
Curtis James Jackson III, better known as 50 Cent, filed a statement of his financial affairs in Connecticut bankruptcy court on Monday, following the rapper’s mid-June Chapter 11 filing.
Puerto Rico officials confirmed Monday that they will be unable to make a multimillion-dollar bond payment that came due on the first of the month, marking the first time the territory has defaulted on its obligations as it attempts to restructure $73 billion in debt.
A former oil company executive ordered to face shareholder allegations he pumped Delta Petroleum Corp.'s stock before its plunge into bankruptcy has asked the U.S. Supreme Court to address circuit disagreement over what investors must prove to link stock losses with misrepresentation by executives.
The Borders Group Inc. liquidating trust is urging the U.S. Supreme Court to pass on an appeal seeking to revive class action litigation over $210.5 million in unredeemed customer gift cards, saying the plaintiffs sat on their claims against the shuttered bookstore for too long.
A Delaware bankruptcy judge said Monday he would weigh requests later this month by the Chinese export-import bank and a state-owned construction company to scrap the unfinished $3.5 billion Baha Mar resort's Chapter 11 case in favor of a parallel proceeding in the Bahamas.
The California Department of Consumer Affairs pushed the Delaware bankruptcy court Friday to find that its disciplinary action against Corinthian Colleges Inc. isn't barred by the for-profit educator's Chapter 11 filing, joining several state agencies seeking a definitive ruling on whether their enforcement actions can go forward.
Gold mining operation Premium Exploration USA Inc. filed for Chapter 11 on Friday in Idaho, becoming the latest U.S.-based mining operation in recent months to seek bankruptcy protection.
The debtor’s filing of a petition is the first significant event in a bankruptcy case that may give rise to a reasonable expectation of litigation and, thus, the duty to preserve evidence. Where the debtor and its creditors are engaged in prepetition litigation or such litigation is contemplated, the duty to preserve evidence has already been triggered, say William O’Bryan Jr. and Adam Langley of Butler Snow LLP.
Amid various circuits' movement away from the equitable mootness doctrine, a recent decision in the Chapter 11 case of One2One Communications LLC cries out for the Third Circuit to reconsider the equitable mootness portion of Continental Airlines en banc, say Bruce Buechler and Cassandra Porter of Lowenstein Sandler LLP.
Trial lawyers should approach direct examination with the same excitement as cross-examination. If you do not, the jury will notice and your case will suffer. An effective direct examination backs the lawyer out of the action and puts the witness front and center to tell the story in a conversational, comforting, interesting fashion, says James Murray of Dickstein Shapiro LLP.
The Fifth Circuit’s recent dismissal of a federal securities fraud class action that arose out of the failure of Guaranty Bank serves as a reminder that even where some specific allegations tend to support an inference of scienter, they may not invariably lead to a finding of the required “strong inference,” says David Dodds of Haynes and Boone LLP.
A recent Seventh Circuit decision in a case related to Tom Petters' Ponzi scheme establishes the viability of in pari delicto as a defense potentially available to pre-bankruptcy advisers to a debtor, even in cases where the claims against the outside professionals go beyond an alleged failure to discover misconduct, say Lisa Schweitzer and Grace Kurland of Cleary Gottlieb Steen & Hamilton LLP.
Opportunities for distressed debt funds to buy attractively priced distressed corporate assets have been few and far between in recent terms, but do not expect activity levels to be quiet forever. One market that funds have been eyeing closely is Italy, say attorneys with Orrick Herrington & Sutcliffe LLP.
While current law indicates that claims of affiliated lenders may be treated as separate to the extent documented by different proofs of claim, allowing affiliates to count as different creditors for numerosity purposes in bankruptcy, change may be ahead, say attorneys with Chapman and Cutler LLP.
Creditors are often tempted to file an involuntary bankruptcy petition against their debtor as a way to compel the payment of a debt. But as a recent Second Circuit affirmation in the TPG Troy LLC case shows, the involuntary bankruptcy petition is not just another collection device, says Michael Cook of Schulte Roth & Zabel LLP.
An increasing number of colleges and universities find themselves defending litigation initiated by Chapter 7 trustees administering bankruptcy cases of the parents of past or present students. One congressman is seeking to reverse this trend, says Lynne Xerras of Holland & Knight LLP.
The Eleventh Circuit, in the case of hotel owner Sagamore Partners, expressly rejected the notion that under Florida and federal bankruptcy law, late fees and default interest are somehow inconsistent remedies. The case also reflects an increasing reluctance on the part of appellate courts to dismiss appeals of consummated, confirmed plans, say Steven Wilamowsky and Laura Appleby of Chapman and Cutler LLP.