Michigan's attorney general has told the U.S. Supreme Court that it should grant an appeal of a Second Circuit decision freeing two insurers from certain workers' compensation liabilities of previously bankrupt Delphi Corp., saying this exercise of judicial power supplanted the state’s administrative regime.
The Texas State Senate on Thursday passed a bill that would require plaintiffs alleging asbestos damages against a bankrupt company to file a trust claim before lodging a suit, while giving asbestos courts more leeway to stay a trial in such a case, clearing a final hurdle before the bill is sent to the governor's desk to be signed into law.
Westchester Fire Insurance Co. took issue Friday with precious metal miner Allied Nevada Gold Corp.’s Chapter 11 plan disclosure statement, arguing that it appears to mistakenly presume that $52 million in surety bonds it provided can be assumed by the reorganized debtor without the insurance company’s consent.
A Delaware bankruptcy judge agreed Friday to delay consideration of Variant Holding Co. LLC’s real estate portfolio sale at the reduced price of $205 million but will hear a bid from the debtor’s CEO and several entities to be paid $50 million from the proceeds.
The IRS asked the U.S. Supreme Court on Thursday to reject a petition filed by three debtors who claim tax debts can still be discharged in bankruptcy when the applicable tax return has been filed late, saying there's a limit to allowable lateness.
A Delaware bankruptcy judge on Friday blessed Natrol Inc.'s Chapter 11 plan to pay creditors in full from the proceeds of a $132.5 million sale of its nutritional supplement business, rejecting the Internal Revenue Service's contention that funds shouldn't be handed out until the debtor calculates its tax bill.
The liquidating trustee of Bernie Madoff's bogus investment firm on Thursday defended his clawback suit seeking $900 million from the two operators of Madoff's first feeder fund and their families, saying the pair were instrumental in growing the Ponzi scheme and concealing the fraud from government investigators.
Prosecutors are seeking leniency for a father-son duo who worked at Bernie Madoff's securities firm and cooperated with the government’s investigation into the largest Ponzi scheme in U.S. history.
The former U.S. Investigations Services LLC employee who blew the whistle on alleged fraud at the government background-check contractor filed a complaint Thursday in parent company Altegrity Inc.'s bankruptcy, seeking protection for his lawsuit and the hefty award he stands to reap if he wins his case.
The Second Circuit said Friday it would not resurrect a class action accusing PricewaterhouseCoopers LLP of failing to properly audit MF Global Inc. before the brokerage firm spiraled into bankruptcy in 2011.
Lockheed Martin Corp. urged a Delaware bankruptcy judge Thursday to formally reject its $267 million contract to build a satellite for Chapter 15 petitioner NewSat Ltd., saying the Australian satellite company effectively killed the deal by failing to act on it by the agreed-upon deadline.
Bankrupt RadioShack Corp. has agreed to severely limit its sale of customer data in order to resolve privacy concerns raised by 38 state attorneys general, setting a bar that businesses will need to meet in order to avoid regulatory scrutiny of future customer data transfers.
The Delaware bankruptcy judge presiding over the U.S. arm of Nortel Networks Corp.’s massive Chapter 11 rejected $18 million in severance claims Thursday from ex-employees of its Canadian parent filed three years after the deadline, ruling the workers hadn’t shown they were late because of excusable neglect.
Twelve hundred truckers fired abruptly by Jevic Transportation Inc. were unable to bend the Bankruptcy Code to their aid Thursday, when a U.S. appeals court approved a priority-toppling settlement that favored banks and private equity firms while leaving the truckers, and their $12.4 million wage claim, in the cold.
A New Jersey federal judge ruled Wednesday that Cayman Islands law applies to a lawsuit accusing a former Sphinx hedge fund director of improperly depositing $312 million into offshore Refco Inc. accounts days before the brokerage firm's high-profile bankruptcy, ruling that the case was contractually bound to the islands.
Wells Fargo & Co. asked a Georgia federal judge Wednesday to dismiss a $30 million lawsuit alleging it has reneged on a mortgage forbearance agreement, arguing all damages were speculative and that bankruptcy proceedings would have prevented it from foreclosing regardless.
A Delaware bankruptcy judge agreed Thursday to allow Karmaloop Inc. to hand itself over to senior secured lenders after no bids were fielded to purchase the online apparel seller, and the top creditors also reached a settlement with unsecured creditors who had previously criticized the transaction.
Fox Rothschild LLP has added two partners to its expanding Chicago office, one in its bankruptcy and litigation departments and another in its real estate department, the firm said Thursday.
Ampal-American Israel Corp.'s trustee on Thursday denied accusations from the debtor's CEO that his law firm's prior representation of a major creditor in the case should be cause to remove him from the proceedings, saying at a hearing in New York that there is no conflict that would prevent him from administering the case fairly.
The trustee monitoring the bankruptcy of Life Partners Holdings Inc. on Wednesday said the company engaged in a multiyear “wide-ranging” fraud in his emergency motion in Texas bankruptcy court to control the distribution of death benefits payable on the policies held by its customers.
While the particular Bankruptcy Code sections most implicated by the U.S. Supreme Court decision in Harris v. Viegelahn are not ones corporate restructuring attorneys generally grapple with, any insight into the Supreme Court’s statutory interpretation framework is always useful. In addition, there are broader lessons to be learned from this one, says Abigail Lerner of Weil Gotshal & Manges LLP.
Developers in today’s South Florida condominium market need to convince their investors to accept a more hands-off approach as major decisions for which investors could traditionally exert control are now subject to the lender’s consent. In addition, many lenders have taken the position that routine bankruptcy-remote safeguards are no longer sufficient, says Rebecca Abrams Sarelson of Arnstein & Lehr LLP.
The nebulous zone of insolvency for nonprofits demands the exercise of proper corporate governance, but for whose benefit? Lemington III is a warning that the insolvency zone can span years during which directors’ actions will be scrutinized. Sweet Briar College, on the other hand, is a demonstration of the difficulties directors face when they perceive the rapid approach of financial calamity and act as they see fit, say attorneys... (continued)
Property held in an entireties estate is held by each spouse in the whole, so neither spouse can unilaterally sever the estate. By extension, such property is generally protected from execution by creditors of one of the spouses. This concept can become particularly interesting — and troublesome, from the perspective of creditors — when spousal guaranties are involved, say George Cass and Tyler Dischinger of Buchanan Ingersoll & Rooney PC.
There has been a rapid and robust growth in the number of companies offering electronically stored information collection, management and processing services. But a recent survey indicated that not all service providers offer the level of expertise needed in today’s world of big data, the cloud and mobile devices, says Barry O’Melia, chief operations officer at Digital WarRoom.
A valid, perfected security interest generally will be enforced by the bankruptcy courts. However, a lender with collateral faces various risks that could defeat its senior status. Adherence to the technical requirements for perfection is essential, says Ira Herman of Thompson & Knight LLP.
Coupled with other recent developments, the Southern District of New York decision in the Chapter 11 case of MPM Silicones LLC, or Momentive, may suggest a turn toward harsher treatment of secured lenders in bankruptcy, say Ron Meisler and Christopher Dressel of Skadden Arps Slate Meagher & Flom LLP.
The Tessera Inc. patent case highlights a useful procedure seldom used in the federal court system — Federal Rule of Evidence 706, which allows for a court-appointed expert. But Rule 706 provides little guidance on when to use such an expert, how to select one or how to work with one. Here are some tips, say Philip Woo and Nathan Greenblatt of Sidley Austin LLP.
Although scant, there is case law authority which stands for the proposition that rejection of unexpired oil and gas leases would prove futile in light of the protections provided lessees under Bankruptcy Code section 365(h). Debtor lessors desiring to use bankruptcy as a way to cleanse themselves of unwanted oil and gas leases should think twice, says Camisha Simmons, founder of Simmons Legal PLLC.
A Texas bankruptcy court's ruling in the matter of CTLI Inc. that the use of social media to advertise company sales and inventory, link to company web pages and post phrases relating to a business all supported the conclusion that social media accounts were company — not employee — property in bankruptcy, says Jackie Ford of Vorys Sater Seymour and Pease LLP.