The lead plaintiffs in a shareholder class action against bankrupt OCZ Technology Group Inc.’s former brass in California federal court blasted on Thursday an effort by the estate’s liquidation trust to halt consideration of a $7.5 million settlement by asking the Delaware bankruptcy court to enforce Chapter 11’s automatic stay.
A Delaware bankruptcy judge on Thursday granted a preliminary injunction sought by real estate company Variant Holding Co. LLC, temporarily blocking a foreclosure sale of properties owned by one of its non-debtor subsidiaries.
The New York bankruptcy judge handling LightSquared Inc.’s knotty Chapter 11 case held Thursday that Harbinger Capital Partners LLC, the debtor’s top equity holder, cannot eliminate a guaranty on $1.7 billion in debt owed to a group of secured lenders.
The city of Stockton, California, won court approval Thursday for its plan to exit Chapter 9 bankruptcy, with a judge rejecting holdout creditor Franklin Templeton Investments' argument that the plan was unfair because it would satisfy the city's pension obligations in full while forcing Franklin to accept a recovery of less than 1 percent.
A Long Island attorney has been indicted on charges of forging a New York bankruptcy judge's signature in a phony 2013 order, prosecutors said Thursday.
The United States on Wednesday asked the Ninth Circuit to revisit en banc a September decision by a three-judge panel that lavish spending habits aren't enough to prove willful tax evasion, saying that the reversal created a split with several other circuit courts.
MF Global Inc. has reached settlements in two class action lawsuits alleging price manipulation in the palladium and platinum markets that will allow plaintiffs to file $21.1 million in claims in MF Global’s bankruptcy and receive over $6 million in cash, according to Wednesday New York federal court filings.
The judge presiding over GT Advanced Technologies Inc.’s secretive bankruptcy on Thursday endangered a settlement of the contract dispute with Apple Inc. that destroyed GT's business, saying that a key document both companies want sealed should be made public.
The equity committee for bankrupt AgFeed Industries Inc. launched an adversary action Wednesday alleging ex-business partner Hormel Foods Corp. made “false representations” and knew about claims it had asserted against the hog production company that led to an arbitration award that the debtor says ultimately pushed it into Chapter 11.
An Akin Gump Strauss Hauer & Feld LLP bankruptcy attorney left the firm to become a partner at Gardere Wynne Sewell LLP, where he had started his legal career as an associate, the firm announced Wednesday.
A former client of Houston's Pendergraft & Simon LLP has sued two of the firm's lawyers for $3 million in a case that accuses the lawyers of a laundry list of alleged flubs in a dispute between a doctors' group and its former president and improperly advised the group to pursue Chapter 11 bankruptcy.
Counsel representing Sam Wyly in his bankruptcy told a New York federal judge in a letter made public Wednesday that the Texas tycoon hasn’t been liquidating assets unbeknownst to them, firing back against the U.S. Securities and Exchange Commission’s bid for an extended asset freeze that would apply to Wyly’s family members and third parties.
The federal bankruptcy watchdog threw its support Wednesday behind bids to throw out Global NAPs Inc.'s Chapter 11 petition, arguing creditors will be better served by the receivership in Massachusetts, already in its fourth year, and that the debtor filed in “bad faith.”
A Delaware bankruptcy judge on Wednesday blessed cooperative food distributor Associated Wholesalers Inc.'s $288.1 million sale to stalking horse C&S Wholesale Grocers Inc., which outlasted industry rival SuperValu Inc. at an auction last week.
An unnamed investor holding senior debt in Caesars Entertainment Corp.’s largest subsidiary has pulled out of negotiations around the seemingly inevitable restructuring of the casino operator’s balance sheet, according to a Wednesday securities disclosure.
Real estate mogul Donald Trump took aim Wednesday at the Chapter 11 plan disclosure statement for the casino operator that bears his name, arguing that Trump Entertainment Resorts Inc. doesn't reveal what it plans to do if it loses a court battle over use of the moniker.
The Second Circuit on Wednesday upheld a dismissal of appeals by customers seeking refunds for unredeemed gift cards they hold from bankrupt book retailer Borders Group Inc., saying the $210.5 million in claims were moot because they were filed after the liquidation plan was "substantially consummated."
Bankrupt special effects company Digital Domain Media Group Inc. agreed to release $18 million of the $20 million in film project tax credits it received from Florida back to the state, the Florida Department of Economic Opportunity announced Wednesday.
Bankrupt Nautilus Holdings Ltd. launched an investigation Wednesday into whether York Capital Management Global Advisors LLC had built up a blocking position in the debt of an operating unit in order to sabotage the container shipping venture’s restructuring efforts.
RadioShack Corp., which has flirted with bankruptcy amid growing financial problems, said Wednesday that it has brought on former U.S. Department of the Treasury senior adviser Harry Wilson to lead the electronics retailer's turnaround efforts.
Buyer-landlords in multiproperty sale-leasebacks usually assume that the seller-tenant cannot selectively terminate sites from the lease, leaving the buyer-landlord with ownership of underperforming sites and no related rental stream. Unfortunately for buyer-landlords, bankruptcy courts provide an opportunity for seller-tenants to achieve exactly this result, say Edward Prokop and John Patrick White of Sidley Austin LLP.
The somewhat problematic issue in a bankruptcy sale is determining what rights or obligations, if any, do the parties have under the agreement between the date of execution and the date the court enters an order approving the sale. This is precisely the issue the parties encountered in the Chapter 11 case of Hot Dog on a Stick, says Jeffrey Krieger of Greenberg Glusker Fields Claman & Machtinger LLP.
As conscientious professionals who are required to address problems with notoriously elusive dimensions, lawyers should consider securing second opinions in a much wider array of circumstances than has been the norm, says Judge Wayne Brazil, a neutrual with JAMS and former magistrate judge in the U.S. District Court for the Northern District of California.
A Delaware district court ruling in the case of SemCrude LP is an important reminder that in determining whether a debtor had unreasonably small capital to support a fraudulent transfer claim, a court’s analysis must be based on reasonable foreseeability regarding whether the debtor would be able to continue to generate sufficient cash flow after the transaction, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.
The takeaway from California Department of Toxic Substances Control v. Jim Dobbas Inc. is that government agencies that mismanage response actions may now be exposed to — at the very least — cost recovery or contribution litigation where there is evidence the agency made management decisions that led to contamination, or allowed it to continue to be released, say attorneys at Perkins Coie LLP.
Courts remain largely skeptical about allowing litigants to serve and notify evasive parties of legal proceedings through their social media accounts. A recent split ruling by the Oklahoma Supreme Court shows the competing considerations, say Steven Richard and Britt Killian of Nixon Peabody LLP.
Recent circuit court case law allowing “Chapter 20” debtors to strip off valueless junior liens on their homes may result in mortgage lenders having their junior-lien rights eviscerated, rendering them general unsecured creditors with no recourse to the collateral securing their indebtedness, say Paul Avron and Ilyse Homer of Berger Singerman LLP.
Let’s face it: Taking friends or acquaintances to Justin Timberlake concerts or golf at the Ocean Course is not how we as law firm associates are going to develop business. Our primary value comes not from out-of-office networking jaunts but from bearing a laboring oar for our partners. Which is why our best approach to business development is more likely from the inside out, says Jason Idilbi of Moore & Van Allen PLLC.
A New York state court decision in Cortlandt St. Recovery Corp. v Hellas Telecommunications will complicate the ability of noteholders to pursue a fraudulent conveyance action — one of several reasons the decision is concerning, say attorneys with Akin Gump Strauss Hauer & Feld LLP.
The Nevada federal court's recent ruling in Agincourt Gaming LLC v. Zynga Inc. is an important reminder that a nonparty wanting to challenge a civil subpoena should consider carefully the appropriate jurisdiction in which to file a motion to quash under recently enacted Rule 45, say Steven Luxton and Brad Nes of Morgan Lewis & Bockius LLP.