Bankruptcy

  • July 29, 2014

    Bondholders Make 11th-Hour Bid To Stop Argentine Default

    Investment firms holding euro-denominated restructured Argentine debt on Tuesday asked the U.S. federal judge overseeing Argentina’s fight with hedge funds holding about $1.5 billion in government bonds for more time to reach a settlement, as Argentina teeters on the brink of default.

  • July 29, 2014

    Bankrupt Ship Co. CEO Casts $100M IP Suit Over Vessel Sale

    The CEO of troubled Taiwanese shipping firm TMT Group launched a suit in Texas federal court Monday, alleging that a planned bankruptcy sale of three company ships to Mega International Commercial Bank Co. Ltd. will strip him of intellectual property worth more than $100 million.

  • July 29, 2014

    Lehman Trustee Erases Ex-Broker's $5.5M Arbitration Claim

    A New York bankruptcy judge on Monday wiped out a former Lehman Brothers Inc. broker’s $5.5 million bankruptcy claim seeking to hold the defunct investment firm responsible for covering a 2008 arbitration award in favor of ex-clients who accused her of churning their accounts.

  • July 29, 2014

    $150B Forfeiture Claims May Delay Madoff Aides' Sentencing

    The sentencing of five former Bernard L. Madoff Investment Securities LLC employees convicted of aiding the Ponzi scheme could be delayed yet again as defense attorneys dispute the government's $150 billion forfeiture claim, a New York federal judge said Tuesday.

  • July 29, 2014

    EU Approves $260M Aid For Struggling Polish Airline LOT

    The European Commission on Tuesday approved Poland’s plan to aid struggling airline LOT, the country’s flagship carrier, with €193.6 ($259.6 million) to support a restructuring program intended to stave off bankruptcy, ruling the money will not unduly distort competition.

  • July 29, 2014

    Suit Alleging Shareholder Caused ProxyMed Bankruptcy Is Cut

    A Delaware federal judge on Monday tossed one claim and left the other two intact in a suit alleging that the actions of private equity firm General Atlantic LLC and its managing director led to the bankruptcy of ProxyMed Inc., which provided information technology services to doctors, pharmacies and labs.

  • July 29, 2014

    Detroit Audit Finds City Was Insolvent Prior To Bankruptcy

    The city of Detroit released a long-overdue audit finding it was insolvent when it requested Chapter 9 protection last year in the face of its $18 billion debt pile and a $130 million budget deficit that forced a series of creditor defaults, while the bankruptcy judge on Tuesday delayed its hotly anticipated confirmation trial by a week.

  • July 29, 2014

    Convicted CFO Agrees To Pay $1.7M Back To Bankrupt Co.

    The former chief financial officer of bankrupt Fair Finance Co., currently serving a 10-year prison sentence, has agreed to pay $1.76 million to the company's bankruptcy trustee after participating in a $200 million scam involving the CEO of movie company National Lampoon Inc.

  • July 29, 2014

    Love Culture Calls Insider's E-Commerce Sell-Off A 'Ruse'

    Love Culture Inc. on Monday launched an adversary case in New Jersey bankruptcy court against one of its directors over what it said was a bogus $2.5 million sale of the clothing retailer's e-commerce assets to a company that he purportedly owns.

  • July 29, 2014

    Chase Beats Rocker Rundgren's Mortgage Suit In 9th Circ.

    The Ninth Circuit on Tuesday tossed '70s rocker Todd Rundgren's suit contending JPMorgan Chase Bank NA is liable for defunct Washington Mutual Bank FA's allegedly fraudulent handling of his $3 million mortgage, saying the musician failed to exhaust his administrative remedies before suing.

  • July 29, 2014

    Garlock Claimants Call Foul Over $125M Asbestos Liability

    The asbestos claimants committee in Garlock Sealing Technologies LLC’s bankruptcy lobbed new accusations Monday that the manufacturer manipulated evidence about its knowledge of victims’ sources of exposure, which the overseeing judge relied on in a landmark ruling slashing its personal injury liability.

  • July 29, 2014

    Withholding Taxes Can't Be Dumped In Bankruptcy: NJ Court

    New Jersey's Tax Court on Tuesday ruled that the head of a bankrupt construction company must pay over $175,000 to satisfy his company's past due withholding taxes because the sums aren't dischargeable in bankruptcy.

  • July 29, 2014

    Pa. GC To Hire Outside Counsel For Foxwoods Casino Case

    The Pennsylvania Office of General Counsel said Monday that it will hire an outside law firm to defend the state in a case brought by the operator of the defunct Foxwoods casino, since the attorney general and the general counsel declined to take the case.

  • July 29, 2014

    Soldiers' Consumer Debt Cleared In Rome Finance Shutdown

    Rome Finance Co., which financed purchases for some 18,000 soldiers across the country, has been shuttered by regulators for a slew of abuses in an action that returns service members $92 million in value, New York's attorney general said Tuesday after joining state and federal authorities in an investigation.

  • July 28, 2014

    'Girls Gone Wild' Founder Says Judge Can't Jail Him

    “Girls Gone Wild” founder Joe Francis told a California bankruptcy court on Monday that he should not be jailed after the judge found him in contempt for entering the offices of his bankrupt company, arguing the court couldn't lawfully hand down such a sanction.

  • July 28, 2014

    Pipe Maker PSL NA Gets Final Nod For $11.5M DIP

    A Delaware bankruptcy judge granted PSL North America LLC final approval of an $11.5 million debtor-in-possession package Monday after the industrial pipe manufacturer reached a deal with secured creditors concerned that their liens were being primed by the loan.

  • July 28, 2014

    Detroit Ch. 9 Plan Calls For Monitor With Subpoena Power

    Less than three weeks ahead of a blockbuster confirmation trial, the city of Detroit on Friday submitted a new version of its bankruptcy exit plan that envisions for the first time an extended period of financial oversight by an independent, court-appointed monitor.

  • July 28, 2014

    Plant Insulation Reorg Plan Flouts 9th Circ., Insurers Say

    Insurer creditors for bankrupt Plant Insulation Co. urged a California federal judge on Monday to reverse a bankruptcy court's approval of Plant's latest reorganization plan, arguing that the plan flouts a Ninth Circuit order by forcing Plant's trust to purchase a majority of Plant's shares at four times their value. 

  • July 28, 2014

    Lehman Can't Subordinate CMBS Fraud Claims In Ch. 11

    A New York bankruptcy judge on Monday ruled that Lehman Brothers Holdings Inc. cannot de-prioritize a number of securities fraud claims relating to certain collateralized mortgage-backed securities in its Chapter 11 bankruptcy, saying the MBS are not securities "of the debtor or of an affiliate of the debtor."

  • July 28, 2014

    Argentina Gets OK For Bond Payments On Technicality

    With less than 56 hours left to solve a debt-repayment impasse, Argentina got permission Monday evening to make interest payments on certain bonds because of a newly discovered technicality — but the clock will keep ticking, and the special master for the country's debt crisis announced a new round of talks for Tuesday.

Expert Analysis

  • Death Rattle For Unfinished Business Claims?

    Angelo G. Savino

    In a departure from Jewel v. Boxer, the decisions in the cases of Thelen LLP and Heller Ehrman LLP reflect a shift in the manner by which courts treat trustees’ claims for post-dissolution fees, say Angelo Savino and Julie Moeller Albright of Cozen O'Connor.

  • How To Successfully Get Engaged By A Cayman Liquidator

    Jeremy Snead

    Recent shifts in Cayman Islands law mean that Cayman liquidators are now able to retain foreign lawyers for the liquidation of Cayman-registered funds on more flexible terms, and utilize methods of funding that are not otherwise permissible in the territory, say Tony Heaver-Wren and Jeremy Snead of Appleby (Cayman) Ltd.

  • SDNY Weighs In On Third-Party Releases In Bankruptcy

    Frank Grese

    U.S. Bankruptcy Judge Sean Lane of the Southern District of New York in the case of Genco Shipping & Trading Limited waded into the controversy by considering the appropriateness of third-party releases — and nonconsensual ones at that, says Frank Grese of Weil Gotshal & Manges LLP.

  • 11th Circ. Extends FDCPA To Bankruptcy Proofs Of Claim

    Jarrett L. Hale

    The Eleventh Circuit’s ruling in Crawford v. LVNV Funding leaves open the possibility that the Fair Debt Collection Practices Act and related state corollary statutes may be applicable to bankruptcy proofs of claim, which will likely result in increased litigation against debt collectors and, potentially, actual creditors, say attorneys with Hunton & Williams LLP.

  • 6 Years In, Why Haven't FRE 502(d) Orders Caught On?

    John A. Rosans

    In this e-discovery era, why aren't more litigants using Federal Rule of Evidence 502(d) orders and affording themselves basic protection of their most sensitive information? Or, if they are moving for such orders, why are they doing it wrong? asks John Rosans of Katten Muchin Rosenman LLP.

  • Rakoff's Foreign Fund Clawback Ruling Has Limitations

    Raniero D’Aversa

    Judge Jed Rakoff’s recent ruling in the case of Madoff Securities gives comfort to foreign investors that the proceeds of their indirect investments in U.S. companies will not likely be clawed back, but it does not come without certain warnings and limitations — especially considering a contradictory Ninth Circuit ruling issued a mere three days prior to Rakoff’s decision, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • Code Trumps Contract In The 5th Circ.

    Debra McElligott

    The Fifth Circuit opinion in Goldsby v. 804 Congress suggests that even where parties agree upon foreclosure-related fees, costs and charges before a bankruptcy, Section 506(b) of the Bankruptcy Code may still trump the provisions of their contract, says Debra McElligott of Weil Gotshal & Manges LLP.

  • Trial-Ready In 180 Days: Prepare For SDNY's Rocket Docket

    Isaac S. Greaney

    A growing trend in the Southern District of New York akin to a sua sponte rocket docket can provide defendants with an opportunity to set the tone of discovery and shift the burden and risks of the schedule to their adversaries, say Isaac Greaney and Jackie Lu of Sidley Austin LLP.

  • When You Are Responsible For Your Book Of Business

    Jennifer Topper

    Finding prospective clients and retaining them has little to do with your legal training and expertise, and yet you have no practice without successful client acquisition and retention. There is no reason you cannot apply your basic legal training to successful sales efforts hinging upon your practice strength and experience, says independent law firm consultant Jennifer Topper.

  • 4th Circ. Provides Guidance On Nondebtor Releases

    Jason W. Harbour

    The Fourt Circuit's second opinion in the case of National Heritage Foundation shows that it is imperative for the proponent of a nonconsensual nondebtor release to provide appropriate evidence to justify approving such a release, although the court did not draw a bright line as to how many of the six Dow Corning factors must be satisfied, say Jason Harbour and Tara Elgie of Hunton & Williams LLP.