The owners of American Media Inc., which recently acquired all issued and outstanding shares of the National Enquirer publisher, said Monday that they would convert $121.3 million of second lien notes into common equity and that they have taken efforts to minimize the fallout from the bankruptcy of distribution partner Source Interlink Cos.
Detroit on Monday fired back at bond insurer Syncora Holdings Ltd. for saying the city's plan for exiting bankruptcy $7 billion lighter in debt is a conspiracy to defraud the city's creditors, urging a Michigan bankruptcy judge to sanction Syncora for its “falsehoods.”
American Realty Investors Inc. was slapped with a lawsuit in Texas federal court Tuesday by a Michigan real estate mogul who said the company abused the bankruptcy process and is hiding assets to avoid paying a $63 million judgment stemming from a soured apartment complex deal.
A Delaware bankruptcy judge ruled Tuesday that an adversary action against an Energy Future Holdings Inc. subsidiary should be handled in two stages, since tackling the senior bondholders’ claim for a $665 million make-whole premium first could eliminate the need for a drawn-out fight over the company’s ability to pay.
Daehan Shipbuilding Co. Ltd. asked a New York bankruptcy court on Monday to recognize its Korean bankruptcy proceeding, saying it needs protection from a U.K. court’s $54.5 million judgment as it attempts to restructure debts following a liquidity crisis.
Nearly 2,500 U.K.-based former Lehman Brothers bankers will receive their pension benefits in full under a $306 million settlement that will see Lehman Brothers International (Europe) fund the pensions with contributions from other companies in the group, a British regulator said Tuesday.
A California federal judge closed the door Monday on the Anna Nicole Smith estate's fight to claim more than $44 million from her late son-in-law, E. Pierce Marshall, saying he found no basis for sanctioning Marshall's estate for allegedly interfering with her inheritance claims.
A Delaware federal judge refused Tuesday to dismiss a lawsuit against private equity firm Navigation Capital Partners Inc. over layoffs at a bankrupt unit in 2013, ruling the former employees had adequately alleged the firm had de facto control over its affiliate and could thus be liable.
A California federal judge on Monday rejected protests from a group of Plant Insulation Co.'s insurance carriers to a Chapter 11 plan that creates an asbestos injury compensation trust, ruling the plan offers the trust a viable path for taking control of the reorganized entity.
Former officers and directors of MF Global Holdings USA Inc., including ex-CEO Jon Corzine, on Tuesday doubled down on their bid for additional access to their liability insurance policies, telling a New York bankruptcy court that doing so will ultimately benefit the estate by reducing potential indemnification claims.
Edison Mission Energy on Monday urged an Illinois bankruptcy judge to deny Chicago Bears Football Club Inc.'s claim against EME's estate for fees tied to a license agreement for an executive stadium suite, saying EME itself doesn't owe the Bears anything and that CBFC failed to mitigate its damages.
Ford Motor Co., Honeywell International Inc. and numerous other companies asked a North Carolina federal judge Monday to let them inspect sealed court records in Garlock Sealing Technologies LLC’s asbestos-related bankruptcy case, which they say involve claims against lawyers who allegedly engaged in fraud in settling mesothelioma claims.
Goldman Sachs & Co., Deutsche Bank Securities Inc. and several other banks on Monday dodged the remnants of a lawsuit brought in Texas federal court by the Federal Deposit Insurance Corp. on behalf of defunct Guaranty Bank, which alleged it paid $2.1 billion to acquire 20 shoddy mortgage-backed securities from the banks
A Delaware federal judge on Thursday affirmed a bankruptcy court’s $4 million fee award to Skadden Arps Slate Meagher & Flom LLP for its work representing defunct packaging company Radnor Holdings Corp., rejecting the former Radnor CEO's appeal stemming from the company's sale to a hedge fund.
The U.S. Department of Defense on Monday took issue with bankrupt outfitter Tactical Intermediate Holdings Inc.'s planned $13 million stalking horse sale of its military apparel line, saying the possible inclusion of the debtor's U.S. Army contract violates federal regulations.
The city of Detroit's plan to exit bankruptcy will result in growth in taxable income and employment in the city, a tax expert said in Michigan bankruptcy court Monday as part of the city's blockbuster Chapter 9 confirmation trial.
The Eleventh Circuit on Friday ruled that the bankruptcy petition of Boca Raton, Florida-based Global Energies LLC was filed by one of the company's shareholders in bad faith and said that the bankruptcy court erred in failing to consider new evidence and void the sale of the company's assets.
A trio of hedge funds filed suit against Lehman Brothers Holdings Inc. in New York bankruptcy court on Friday, seeking a declaration they are entitled to set the interest rate on payments due from a Lehman subsidiary under terminated swaps and derivative contracts that they purchased during the Chapter 11 case.
Irving Picard has wowed the investment world by recovering more than $9 billion for victims of the Bernard L. Madoff Ponzi scheme, but attorneys say the superstar trustee's juggernaut may finally be losing steam as a judicial backlash against his tactics emboldens the remaining holdouts.
A New York bankruptcy judge ruled Monday that “threshold issues” in the General Motors Co. bankruptcy-shield dispute, including whether GM violated customers' due process rights by concealing an ignition switch defect, will have to wait until after motorists file a consolidated complaint in parallel multidistrict litigation, rejecting what he called a piecemeal approach.
The Second Circuit ruling that Bernard L. Madoff bankruptcy trustee Irving Picard may not block two large settlements involving Madoff feeder funds is welcome news for institutions that invested in “intermediate” funds that are still solvent. Commentators, however, fully expect that Picard will continue to appeal adverse decisions, including this most recent ruling, say Jonathan Sablone and Danielle McLaughlin of Nixon Peabody LLP.
The Chapter 11 case of Genco Shipping & Trading Ltd. presented the Southern District of New York with a complex question of value. Unfortunately for the official committee of equity holders, the only valuation that put equity in the money was a rejected discounted cash flow, say Daniel Glosband and Thomas Good of Goodwin Procter LLP.
With all attention focused on Executive Benefits Insurance Agency v. Arkison, the U.S. Supreme Court's Daimler AG v. Bauman decision could represent the real sea change in jurisdiction over noncore actions, say attorneys with Latham & Watkins LLP.
To this day, I have yet to see a litigation hold letter that was written by someone who understands the realities of how a business is actually run. In-house counsel cannot issue decrees to business units that read like they are issued by the king to his subjects, says Francis Drelling, in-house counsel at Specialty Restaurants Corp.
To avoid the risk of multiple depositions or inadmissible testimony, all counsel should focus prior to a deposition — and before designating a witness — on knowledge and hearsay issues that may arise at Rule 30(b)(6) depositions, say Susan DiCicco and Stephen Scotch-Marmo of Bingham McCutchen LLP.
The ways that multiple accounts may be set up for individuals investing in a Ponzi scheme are endless, and numerous questions arise when the scheme has ended up in an insolvency proceeding. Unfortunately, courts' divergent views only create opportunities for yet more litigation, says Kathy Bazoian Phelps of Diamond McCarthy LLP.
On average, a legal professional forwards content to 14 different people per week. Yet many attorneys and staff lack an understanding of copyright and their firm’s specific policies regarding shared third-party materials, says Roy Kaufman of Copyright Clearance Center.
Given the expedited nature of the 2008 sale of Lehman Brothers’ brokerage business to Barclays Capital, it is not entirely surprising that ambiguities existed, but market participants can take comfort in a Second Circuit examination of the “commercial reality” of the transaction in a ruling that may affect future payouts to Lehman creditors, say Adam Friedman and Jonathan Koevary of Olshan Frome Wolosky LLP.
Puerto Rico’s motion to dismiss a complaint seeking to invalidate the commonwealth’s recently enacted restructuring law contains little firepower on what is likely to be the central issue — the federal Bankruptcy Code’s statutory prohibition on nonfederal debt composition statutes that purport to bind nonconsenting creditors, say Leonard Weiser-Varon and William Kannel of Mintz Levin Cohn Ferris Glovsky and Popeo PC.
In addition to significantly reducing costs incurred in the preparation of privilege logs, the new categorical approach to privilege logs in New York will allow parties to identify and frame legal issues requiring the court’s attention more clearly — thus positively impacting the efficiency of the dispute resolution process as well, say Joseph Schmit and Aaron Schue of Phillips Lytle LLP.