• October 6, 2015

    Tax Court Says Shareholders Still Owe Defunct Co.'s Debts

    The U.S. Tax Court on Tuesday said it had agreed to reconsider an earlier opinion finding that shareholders in a defunct construction company were on the hook for their share of $5 million of the company’s debts, but did not alter its prior conclusions.

  • October 6, 2015

    Coyotes Ex-Owner Slams NHL's Claims Over Reorganization

    Former Phoenix Coyotes team owner Jerry Moyes and his wife said Monday that an Arizona federal judge should back a bankruptcy court’s finding that the NHL can’t keep pursuing roughly $120 million for claims stemming from the Coyotes’ reorganization, in part because bankruptcy preemption bars some claims.

  • October 6, 2015

    Company Behind W.Va. Spill Gets Nod On Ch. 11 Plan

    The company responsible for a massive chemical spill that contaminated drinking water in West Virginia got a bankruptcy judge to sign off Tuesday on a reorganization plan which will divvy up about $6.1 million to compensate creditors and victims and help fund remediation efforts.

  • October 6, 2015

    Patriot Coal, W.Va. Reach $50M Bankruptcy Cleanup Deal

    Patriot Coal Corp. has reached a deal to set aside more than $50 million to cover the bankrupt coal company’s environmental cleanup responsibilities in West Virginia, including keeping some of the company’s union and nonunion miners employed, the state’s Department of Environmental Protection said Tuesday.

  • October 6, 2015

    Texas Atty Says Deal With Firm Can't Ax Claim Against Client

    A Texas lawyer argued Tuesday that Shore Chan DePumpo LLP cannot use a settlement releasing patent litigation referral-fee claims against the firm and its clients, to block a $3 million claim against a Shore Chan client in an unrelated bankruptcy matter.

  • October 6, 2015

    Allied Nevada Gold Wins Confirmation Of Ch. 11 Plan

    A Delaware bankruptcy judge agreed to confirm Allied Nevada Gold Corp.'s Chapter 11 plan, which aims to hand over equity in a reorganized company to unsecured creditors and swap in new first-lien debt, despite certain individual shareholders voting against the turnaround strategy.

  • October 6, 2015

    NJ Water Agency Sues Ex-Employees Over Bankruptcy Claims

    A defunct Newark, New Jersey, water infrastructure agency on Tuesday sued dozens of onetime employees to sink demands for severance-related compensation in its bankruptcy, claiming settlement agreements or incentive packages bar those claims and that the employees are looking to enforce an illegal severance policy.

  • October 6, 2015

    American Apparel Gets Interim Nod On $90M DIP Facility

    A Delaware bankruptcy judge gave American Apparel interim approval Tuesday to tap a portion of $90 million in debtor-in-possession financing as the beleaguered clothing retailer kicked off a Chapter 11 process it hopes will significantly reduce its nearly $400 million in total debt.

  • October 6, 2015

    Relativity Gets Green Light For $125M Sale Of TV Business

    A New York bankruptcy judge signed off Tuesday on the sale of Relativity Media's television business to a group of the company's senior lenders, including hedge funds Luxor Capital and Anchorage Capital, for $125 million.

  • October 6, 2015

    A&P Defends Proposed $40M Wakefern Sale

    The owner of A&P supermarkets defended on Monday the proposed sale of 12 grocery store locations in New York, Pennsylvania and Connecticut to competitor Wakefern Food Corp. for $40 million, responding to the objections of a disgruntled party that is slated to lose a lease for a Pathmark in Philadelphia.

  • October 6, 2015

    50 Cent Lobs $75M Malpractice Suit At Garvey Schubert

    Rapper 50 Cent accused of malpractice Garvey Schubert Barer and the attorneys who represented him in licensing negotiations and arbitration disputes with a headphones maker in which the now-bankrupt entertainer had invested, saying in a complaint on Tuesday that the firm and its attorneys owe him $75 million.

  • October 6, 2015

    NJ High Court To Mull Riker Danzig Win In Mortgage Row

    The New Jersey Supreme Court said Monday that it will consider whether Riker Danzig Scherer Hyland & Perretti LLP should have priority over the mortgages of another creditor of certain camera sales businesses and their owners, who allegedly owed the law firm more than $3 million in fees.

  • October 6, 2015

    SEC Hits Former OCZ CEO With Accounting Fraud Suit

    Federal securities regulators filed suit in California federal court on Tuesday against the former chief executive of OCZ Technology Group, accusing him of conducting a scheme to artificially inflate the computer hardware maker’s financial results.

  • October 6, 2015

    Alter-Ego Tax Case Doesn't Warrant Review, High Court Told

    The federal government told the U.S. Supreme Court it needn't review a Ninth Circuit decision holding a couple liable for taxes owed by their company, which owned and operated their Midas franchise stores, because the rule for alter-ego determinations in tax cases is firmly established.

  • October 6, 2015

    Snell & Wilmer Wants 'Indecipherable' Racketeering Suit Axed

    A racketeering suit accusing Snell & Wilmer LLP and others of conspiring to bankrupt an electronic payment terminal venture is "indecipherable" and doesn’t allege anything more than a business dispute, the firm told a Florida federal court Monday, asking that the suit be dismissed.

  • October 5, 2015

    American Apparel Gets Time To Sort Out Litigation In Ch. 11

    American Apparel's move into bankruptcy Monday gives the clothing retailer breathing room to sort out a mountain of lawsuits brought in recent months by former employees, shareholders and its deposed founder Dov Charney, and should give the company's new management a chance to implement a stalled turnaround strategy, experts say.

  • October 5, 2015

    Supreme Court Snubs Texas Atty Fighting Contempt Order

    The U.S. Supreme Court declined Monday to review a Texas attorney’s challenge to a civil contempt order for her failure to pay a $25,000 sanction, leaving intact a bankruptcy court ruling that the lawyer said violated the prohibition on imprisonment for a debt.

  • October 5, 2015

    Justices Asked To Revive Goldman & Rosen Malpractice Row

    A former Consolidated Freightways employee who won an $800,000 discrimination verdict against the company has asked the Supreme Court to revive his malpractice suit against the attorney who represented his claim in Consolidated Freightways' bankruptcy, saying the underlying opinion makes it difficult for clients to pursue malpractice claims.

  • October 5, 2015

    Trial Fires Up Over Dueling Caesars Bankruptcies

    Junior noteholders went to trial Monday to force Caesars Entertainment Operating Co. Inc. into bankruptcy in Delaware, arguing their involuntary petition should be respected in light of $255 million in unpaid debts CEOC accrued before filing its Chapter 11 three days later in Illinois.

  • October 5, 2015

    High Court Turns Down $210M Borders Gift Card Spat

    Borders Group Inc. customers who missed out on $210 million in gift cards after the company went bankrupt lost their bid Monday to revive the dispute after the U.S. Supreme Court denied their petition to consider the suit.

Expert Analysis

  • Cayman Eviscerates Liquidation Option For Fund Investors

    Jonathan Sablone

    With a recent decision in the case of Rhone Holdings LP, the insertion of boilerplate language can now obviate an important and powerful tool of the Cayman Islands Companies Law and invest even more power in offshore funds, say Jonathan Sablone and Danielle McLaughlin of Nixon Peabody LLP.

  • 5 Things Clients Never Tell Their Lawyers


    Given the times we live in, it is almost inevitable that everyone will, sooner or later, need to consult with legal counsel. With that in mind, I thought it might be interesting to discuss a few things that clients just won't tell their lawyers, says Francis Drelling, general counsel of Specialty Restaurants Corp.

  • Lehman Ruling Offers Much-Needed Guidance On 'Loss'

    Fred Sosnick

    A Southern District of New York decision in a Lehman Chapter 11 suit, holding that Intel Corp.’s loss calculation resulting from a failed transaction was appropriate, is significant both because of the dearth of judicial interpretation of International Swaps and Derivatives Association closeouts, and because it affirms the general understanding that a nondefaulting party has broad discretion in calculating “loss,” say attorneys wit... (continued)

  • EFH Bankruptcy Yet To Face Its Biggest Hurdles

    Benjamin D. Feder

    Energy Future Holdings has cleared all of the preliminary hurdles in its path as it moves toward the confirmation of its plan of reorganization. But EFH has reached this point mainly by successfully deferring the battle on certain crucial issues, says Benjamin Feder of Kelley Drye & Warren LLP.

  • Can Alphabet Soup Fix Puerto Rico’s Debt Service Issues?

    Leonard Weiser-Varon

    Last week, the Working Group for the Fiscal and Economic Recovery of Puerto Rico gave the broadest hint yet of the next tactic in Puerto Rico’s ongoing quest to deleverage itself — a negotiated exchange that stirs together an alphabet soup of issuers and creditors. As the saying goes, good luck with that, say Leonard Weiser-Varon and William Kannel of Mintz Levin Cohn Ferris Glovsky and Popeo PC.

  • Questions Remain Over Chapter 11 Application Of Bullard

    Derek L. Wright

    Since the U.S. Supreme Court’s opinion in Bullard v. Blue Hills Bank came down in May, lower courts have cited it with, at best, mixed results. While such courts have begun relying on Bullard in Chapter 11 cases, they’ve done little to uniformly answer the question of what effect, if any, Bullard has on the finality of Chapter 11 bankruptcy orders, says Derek Wright of Foley & Lardner LLP.

  • What Attys Need To Know About Restructuring A Zombie Fund

    Neil F. Luria

    Zombie fund restructurings don’t happen often, but when they occur, there are significant challenges for attorneys to navigate given the large asset base, complicated litigation issues and urgent need for monetization strategies. Oddly, the process is most efficient when things are at their worst, says Neil Luria, senior managing director at Solic Capital Advisors LLC.

  • 10 Marketing Tips From A Young Partner Perspective

    Richard Segal.jpg

    No one ever told you in law school that once you received the highly coveted associate job in a big firm, that to really succeed at that job and climb the ranks quickly you need to take on a second job — marketing, says Richard Segal of Kluger Kaplan Silverman Katzen & Levine PL.

  • The Deception In Balance Sheet And Liquidation Analysis

    Kenneth A. Rosen

    As a bankruptcy attorney, I have learned that balance sheets and liquidation analyses can be very deceptive and that value is much more of an art than a science. Certain liabilities, such as contract rejection claims, do not show up on a balance sheet, says Kenneth Rosen, chairman of the bankruptcy and creditors' rights practice at Lowenstein Sandler LLP.

  • OPINION: Have Big Law Firms Lost Their Way?

    Dennis R. Suplee

    My hope is that this article will not be seen as a rant by a senior trial lawyer. The truth is that some things get worse with the passage of time and it should be fair to comment upon such deterioration, says Dennis Suplee, a partner and former chairman of Schnader Harrison Segal & Lewis LLP.