Apple Inc. supplier GT Advanced Technologies Inc. expects to reach an agreement shortly that would resolve its onetime partner’s worries about publicly airing information on the companies' falling-out that abruptly drove it into Chapter 11, attorneys said Tuesday morning.
Energy Future Holdings Corp. caught heavy flak Monday over the proposed auction of its valuable stake in Oncor Electric Delivery Co. LLC, with creditors of the bankrupt power giant questioning the timing and structure of the sale process.
The U.S. government’s bankruptcy monitor slammed GT Advanced Technologies Inc.’s request for $25 million in spending power to keep supplies coming from vendors it has refused to identify because of a confidentiality pact with its estranged partner Apple Inc.
Lender Beach Point Capital Management LP and debtor Variant Holding Co. LLC, which accused the creditor of a loan-to-own scheme, resolved their differences Monday in a deal that would have the lender that once accused the real estate company of “complex fraud” providing up to $10 million in debtor-in-possession financing.
A New Jersey bankruptcy judge on Monday formally rebuffed a motion to invalidate the auction of Atlantic City’s bankrupt Revel Casino Hotel, dismissing a losing bidder’s claims of a tainted auction days after the bidder filed notice of appeal.
Texas tycoon Sam Wyly sought Chapter 11 protection Sunday, saying he can't afford a potential $198 million government penalty for allegedly using secretive offshore trusts to trade stocks while evading taxes.
A recent Ninth Circuit ruling that extravagant spending habits aren't enough to prove willful tax evasion appears to hurt one of the IRS's key litigation strategies, but attorneys say the impact will likely be blunted by the circuit's outlier stance.
A Delaware bankruptcy judge agreed Monday to greenlight Specialty Products Holding Corp.'s disclosure statement for its Chapter 11 plan, allowing the home-repair products company besieged by asbestos-related claims to solicit creditors and putting it in the home stretch to exit bankruptcy after four and a half years.
The judge presiding over Detroit’s bankruptcy case said Monday that the city will likely find out in less than three weeks if it can exit the largest Chapter 9 in history under a plan that would erase more than $7 billion in debt and reinvest in essential services to reverse a half-century of civic decline.
Sears Holdings Corp. on Monday announced a $625 million rights offering and said it would lease out more than 500,000 square feet of retail space to European fashion retailer Primark as the retailer continues its struggle to shore up its financial footing.
The U.S. Supreme Court said Monday it will not review a First Circuit ruling regarding a construction company's allegations that the Puerto Rican government drove it into bankruptcy by yanking contracts after an unrelated plea deal.
The trustee tasked with winding down Bernie Madoff’s investment fund reached a deal valued at $62 million with a group of investors who were paid out of funds tainted by the Ponzi scheme, according to a motion filed in New York bankruptcy court on Friday.
Energy Future Holdings Corp. urged a Delaware bankruptcy judge on Friday to bless a proposal to auction its prized stake in Oncor Electric Delivery Co. LLC but faced resistance from various creditor groups who contend the auction scheme would deprive them of billions of dollars.
A group of former US Airways Group Inc. pilots are nearing a settlement with the airline’s pension plan trustee over accusations it takes too long to hand out lump-sum benefits, a D.C. federal judge revealed on Friday in a class certification order five months after the D.C. Circuit revived the case.
The Delaware Supreme Court ruled Friday that a secured lending interest is terminated simply by filing the appropriate paperwork, regardless of the party's intent or understanding, answering a question from the Second Circuit over a challenge involving a JPMorgan Chase & Co. unit in the General Motors Corp. bankruptcy case.
A New Jersey federal judge on Thursday dismissed a Los Angeles firm, since acquired by Venable LLP, from a suit over $590 million in movie financing, agreeing the absolute litigation privilege shields the firm from claims it aided and abetted a client's fraudulent activity.
A Delaware federal judge on Friday denied defunct packaging company Radnor Holdings Co.'s motion to move an adversary case out of bankruptcy court, after its former executive failed to convince judges that Skadden Arps Slate Meagher & Flom LLP conspired with a hedge fund to sell off its assets.
Corinthian Colleges Inc.’s lenders have agreed to hold off on taking action to seize assets after a loan default last month, according to a Friday statement from the for-profit college operator, which is spinning off its assets in a government-ordered wind-down.
A New York federal judge on Friday refused a challenge to a bankruptcy court’s approval of a collective bargaining agreement between American Airlines and a pilots’ union that scaled back benefits, finding a group of disgruntled pilots nearing retirement lack the standing to object.
Bankrupt container shipping venture Nautilus Holdings Ltd. secured more time to cut deals with bank syndicate lenders skeptical of its proposed restructuring plan, which is purportedly being challenged by a mystery investor who wants to acquire a blocking position in its debt.
Identifying Cayman Islands-held assets of a defendant or proposed defendant is something of a mixed bag — straightforward in some respects, but difficult, bordering on the impossible, in other respects, say Christopher Russell and Jane Hale-Smith of Appleby Global Group Services Ltd.
A traditional directors and officers insurance policy risks dilution where the company also faces a covered claim. And when the company has filed for bankruptcy, payment of the proceeds for claims against the directors and officers may be delayed, and even impaired, says Mary McCutcheon of Farella Braun & Martel LLP.
The Second Circuit in the case of Fairfield Sentry Ltd. missed the point that applying Section 363 to the sale of a Securities Investor Protection Act claim — in the context of a Chapter 15 ancillary proceeding — to the same extent that it would apply to property of an estate does not eliminate the principles of comity that infuse Chapter 15, say Daniel Glosband and Kizzy Jarashow of Goodwin Procter LLP.
Many legal briefs are written in impenetrable jargon and begin with an introduction telling the court what it already knows, using words that stem from the 18th century, such as “hereinafter.” Instead, we should approach briefs the way novelists approach their writing, says Michael Rubin of McGlinchey Stafford PLLC.
All is not lost when a general contractor files bankruptcy — subcontractors may be able to perfect their construction liens post-petition, as in the case of Branch Banking & Trust Co. v. Construction Supervision Services Inc., says Vicki Harding of Pepper Hamilton LLP.
In a recent Madoff-related decision, the Second Circuit took a relatively aggressive stance on U.S. court review of asset sales in Chapter 15 cases, and the ruling may have effects in bankruptcy cases outside Chapter 15, say George Shuster and Benjamin Loveland of WilmerHale.
Before the Delaware Supreme Court’s landmark Gheewalla ruling, application of the business judgment rule to actions by directors of insolvent companies had been controversial, given the concern that directors might be inclined to engage in high-risk strategies while creditors bear the risk of failure. A recent Chancery Court decision highlights this concern, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.
Today, information intersects every practice area, making all lawyers effectively information governance practitioners in one way or another. The issue is whether you will consciously embrace this emerging discipline — and capitalize on it to the benefit of your clients and your practice, says Ann Snyder of the Information Governance Initiative.
Shareholders of financially troubled S corporations may now be able to avoid the flow-through of taxes when the S corporation or its subsidiary files bankruptcy, thanks to a Third Circuit ruling in the Chapter 11 case of Majestic Star Casino LLC. The losers are the corporation’s unsecured creditors, says Chad Coombs of Greenberg Glusker Fields Claman & Machtinger LLP.
Given a recent bankruptcy court decision in the case of FMB Bancshares Inc., bank-holding companies should be aware that trust-preferred securities holders may have some support for a further or direct power in their efforts to realize a return on their investment, say attorneys with Arent Fox LLP.