A Delaware bankruptcy judge on Friday declined to consider a bid by Endeavour Operating Corp. unsecured creditors for standing to sue lenders over $440 million in obligations, saying it belonged on the back burner in light of the energy company's recent move to ditch its prearranged Chapter 11 plan.
A California appellate court on Friday shot down a bid by film producer David Bergstein to revive claims against Stroock & Stroock & Lavan LLP and Levene Neale Bender Yoo & Brill LLP for allegedly eliciting secrets from Bergstein’s longtime attorney, ruling the claims were barred by litigation privilege.
Paul Hastings LLP has hired a pair of restructuring partners away from DLA Piper, it said Friday, including a former vice chairman of DLA's restructuring practice who had arrived there only years ago.
Two lawyers suspected of fraud posted a $52,000 bond Friday after a Missouri bankruptcy judge said they would be arrested if they did not comply with a court order to return legal fees to a Chapter 7 debtor and pay sanctions.
Federal bankruptcy watchdogs on Friday urged the judge presiding over Natrol Inc.’s liquidation to deny the supplement maker’s proposal for doling out the proceeds from a $132.5 million sale to India’s Aurobindo Pharma Ltd., saying the repayment scheme elevates Natrol’s former owner over creditor claims.
Australian satellite company NewSat Ltd. on Friday received relief from a Delaware bankruptcy judge that shields it from creditors while its Chapter 15 petition is pending, and reached a deal that keeps Lockheed Martin Corp. working on its key project for the near future.
Environmental testing lab Spectrum Analytical Inc. and a related company filed for Chapter 11 bankruptcy Thursday in Massachusetts after its bank and primary lender discovered a falsified document connected to a $40 million contract to build a lab in Saudi Arabia.
Defunct retailer C. Wonder LLC was slapped Friday with an adversary class action in New Jersey bankruptcy court, accusing the former clothing and accessories purveyor of failing to give its employees 60 days' advance notice of termination before shuttering its doors.
The indenture trustee for certain Energy Future Holdings Corp. junior bondholders on Thursday urged a Delaware bankruptcy judge to nix senior lenders' request for proceeds from a $750 million early repayment of second-lien notes, saying the funds are not subject to an outstanding make-whole obligation.
ERG Resources LLC joined the growing list of oil and gas exploration firms to succumb to slumping energy prices, filing for Chapter 11 protection in Texas on Thursday with a prearranged strategy in hand to sell its assets in an auction process bankrolled by a $17.5 million financing commitment.
Jones Day has hired a leading project finance attorney, who has worked around the globe on projects involving energy, banking, restructuring and real estate, as a partner in its Tokyo and London offices.
Hedge fund creditors attempting to deny Brazilian construction outfit OAS SA’s application for U.S. bankruptcy protection requested Thursday that Morgan Lewis & Bockius LLP be barred from advocating for a separate group of noteholders until the firm stops hiding the identity of its clients.
A Delaware bankruptcy judge on Thursday authorized Karmaloop Inc. to bring Burns & Levinson LLP aboard as counsel in its Chapter 11 case despite opposition from the U.S. Trustee's Office, finding no conflicts of interest that would prevent the firm from working for the online retailer.
Florida-based Kelley Kronenberg has added a bankruptcy practice group in its Tampa office by acquiring the three-attorney firm Dennis LeVine & Associates, the firm announced Thursday.
A Delaware bankruptcy judge on Thursday blessed Saladworks LLC's chosen stalking horse bidder, a unit of private equity firm Centre Lane Partners LLC, setting a floor price of $16.9 million for the casual restaurant chain's upcoming asset auction.
The government of Puerto Rico asked the First Circuit on Wednesday to overturn a ruling that struck down a commonwealth bankruptcy law for public entities, arguing it’s not preempted by federal bankruptcy provisions because Puerto Rico is not protected by the portion of federal Bankruptcy Code reserved for municipalities.
Puerto Rico’s House of Representatives on Thursday killed a consumption-based tax plan critical to easing the commonwealth’s liquidity crisis, a crushing defeat for Gov. Alejandro Garcia Padilla that heightens the likelihood of a second government shutdown since 2006.
A Delaware bankruptcy judge gave Quicksilver Resources Inc. the green light Thursday on its plan to spend $11 million to drill four new wells with a unit of fellow oil and gas company Eni SpA, over objections from the unsecured creditors committee that the move made little business sense.
The parent company of First Bank and Trust Company of Illinois, a community bank located in the northwest suburbs of Chicago, filed a prepackaged Chapter 11 reorganization plan Wednesday that looks to rein in approximately $51 million in debt.
Paul Weiss Rifkind Wharton & Garrison LLP on Thursday told a New York federal judge that the liquidator probing an alleged $355 million fraud at China Medical Technologies Inc. incorrectly cited SEC v. Carrillo Huettel LLP in an attempt to obtain privileged documents concerning the firm’s representation of the company’s audit committee.
An Eleventh Circuit opinion in Rosenberg v. DVI Receivables XIV LLC stands as a stark warning to creditors considering using an involuntary bankruptcy petition as a collection strategy. Bankruptcy Code Section 303 provides for sanctions in the event a petition is dismissed, which could result in a very expensive surprise, says Peter Blain of Reinhart Boerner Van Deuren SC.
Although he wasn't a trial attorney, Dale Carnegie knew a thing or two about persuasive speaking. As litigators, much of our communication tends to be persuasive, but never more so than in a jury trial. There, the rule of thumb should be to "tell the audience what you're going to say, say it, then tell them what you've said," says Katherine Lawler of Miles & Stockbridge PC.
The nature and extent of a debtor’s interest in property is determined under applicable nonbankruptcy law, typically state law. However, whether a property interest falls within the categories included in the estate under Section 541 of the Bankruptcy Code is determined by application of the federal bankruptcy law, says Ira Herman of Thompson & Knight LLP.
Loan-to-own investors still have the ability to mitigate or even circumvent the credit-bid limitations of the Delaware bankruptcy court’s Fisker Automotive Holdings decision. A prudent investor can try to establish the validity and extent of its claim amounts and liens prior to an auction, whether by stipulation or otherwise, says Oscar Pinkas of Dentons.
The matter of Medpoint Management LLC highlights the risks and difficulties faced not only by marijuana businesses, but by their creditors too. Despite Medpoint’s income not directly arising from marijuana and the Cromnibus Act limiting prosecution of marijuana-related offenses, the court still dismissed Medpoint’s case, says John Spires of Dinsmore & Shohl LLP.
A recent Southern District of New York decision in the General Motors bankruptcy case raises important bankruptcy policy questions, including whether the outcome creates improper incentives for debtors that are subject to product liability and latent defect claims, and how the rights of creditors who are affected by lack of a claims bar date notice are to be dealt with in future cases, say Henry Jaffe and Lesley Welwarth of Pepper Hamilton LLP.
The ultimate implications of the U.S. Supreme Court’s Stern v. Marshall decision continue to unfold. But one implication is clear — bankruptcy courts are increasingly deciding state law claims by issuing proposed findings of fact and conclusions of law for the district court’s final review, as evident in Gomez v. Lone Star National Bank, a Southern District of Texas case stemming from a failed restaurant, says Kevin Hembree of Alston & Bird LLP.
What is the correct way to treat investors in a fund operated as a Ponzi scheme? Two decisions suggest the beginnings of a significant divergence between approaches in the U.S. and in the English common law world. That would be surprising and unwelcome, says Peter McMaster of Appleby Global Group Services Ltd.
“Litigate or settle” is the dispute resolution choice generally available in American courts, including bankruptcy courts. But Tribune and a series of post-Tribune investigations have shown that inquisitorial methods make sense in certain large bankruptcy cases involving complex legal disputes, says Dan Bussel, a professor at UCLA School of Law.
There are numerous issues to be taken into consideration regarding leases of personal property, including equipment leases, in the context of a bankruptcy filing. Such leases can be recharacterized as financing agreements rather than true leases, with disputes frequently occurring regarding the correct categorization of an equipment finance transaction as either a true lease or a veiled financing, says Ira Herman of Thompson & Knight LLP.