Beleaguered clothing retailer American Apparel filed for bankruptcy Monday in Delaware amid a prolonged sales slump, unable to right persistent financial problems that have plagued the company while it has been busy battling its controversial founder Dov Charney for control of the business.
Defunct banking company FBOP Corp. on Friday said in Illinois federal court that it should not have to pay a portion of a $265.3 million tax refund to the Pension Benefit Guaranty Corp., arguing the federal government-created retirement income agency is trying to renege on a settlement agreement.
The federal government, regulators in four states, creditors and environmental groups have all voiced their opposition to Patriot Coal Corp.'s latest Chapter 11 reorganization plan, ahead of Monday's hearing on the plan's approval.
Puerto Rico Electric Power Authority has negotiated another two weeks to work with cooperating debtholders as part of an ad hoc effort to handle its $8.9 billion share of the territory's crushing debt without access to a court bankruptcy regime.
A former chief bankruptcy judge has joined Bailey & Glasser LLP’s Washington, D.C., office as partner, bringing his expertise in municipal bankruptcy, mediation and complex commercial litigation, the firm said Friday.
The ex-CEO of LightSquared Inc. bought some time for his appeal of the bankruptcy court’s approval of the wireless startup’s reorganization plan when the Second Circuit on Friday granted an emergency stay in the case.
The Fifth Circuit said Friday it would not rehear a once-bankrupt whistleblower’s appeal of a Texas federal judge’s dismissal of a $50 million False Claims Act case against a U.S. Air Force contractor, likely queuing up a U.S. Supreme Court petition.
Oil and gas driller Miller Energy Resources Inc. filed for bankruptcy on Thursday in Alaska amid an ongoing fraud investigation by securities regulators, saying that it has a prepackaged Chapter 11 plan in place with second lien noteholders Apollo Investment Corp. and affiliates of Highbridge Capital Strategies.
A bankruptcy attorney launched a putative class action in California federal court Thursday against financial service and mobile payment company Square Inc. for allegedly discriminating against bankruptcy attorneys and other business on its so-called Bad List of prohibited users.
A group of senior American Airlines pilots taxied into the Second Circuit on Friday in a last-ditch attempt to undo a bankruptcy court’s approval of a collective bargaining agreement that trimmed their benefits, but three judges showed little appetite to accept their proposed interpretation of a key bankruptcy-labor statute.
Two companies targeted by a lawsuit alleging Snell & Wilmer LLP and others aided and abetted a racketeering enterprise that conspired to bankrupt a payment terminal company urged a Florida federal court Thursday to dismiss them from the suit, saying it’s unclear why they were included.
General Motors LLC defended its argument Wednesday that plaintiffs suing the automaker over ignition switch defects can’t hold it liable for the actions of the prebankruptcy version of the company, telling a New York bankruptcy court that the plaintiffs have stated no independent claims against New GM.
Dozens of investment companies that withdrew funds from Bernie Madoff’s $65 billion Ponzi scheme before it collapsed asked a New York bankruptcy court Wednesday to toss the Madoff trustee’s clawback bid because the transfers took place outside the U.S.
One of the directors of bankrupt rare earth miner Molycorp Inc. told a Delaware bankruptcy judge Thursday that the company's senior executives would be fairly compensated compared with industry standards under an up to $3 million incentive pay plan that is under fire from several corners in the case.
The former chief marketing officer for Quiksilver filed an objection Wednesday in Delaware bankruptcy court indicating that the sportswear retailer is attempting to nix severance agreements it has with executives who have left the company.
Caesars Entertainment Operating Co. on Wednesday asked an Illinois bankruptcy judge to approve an $8 million penalty for what federal regulators describe as “willful violations” of an anti-money laundering law at the company's Las Vegas casino.
Paul Weiss Rifkind Wharton & Garrison LLP must give the liquidator scrutinizing an alleged $355 million fraud at China Medical Technologies Inc. privileged information from an internal investigation the firm oversaw for the bankrupt medical device maker, a New York federal judge ruled Wednesday.
A New York federal judge on Thursday axed most of a suit in which Lehman Brothers Holdings Inc. accused JPMorgan Chase Bank NA of extorting an $8.6 billion “slush fund” through unjustified collateral demands in the frenzied days before Lehman’s demise.
A New Hampshire bankruptcy judge on Wednesday denied GT Advanced Technologies' bid to set aside bonuses for the company's chief and other top executives, saying the extra compensation would be for work they should already be doing as they guide the manufacturer through Chapter 11.
A Delaware federal court Wednesday affirmed a bankruptcy judge’s rebuff of a potential settlement between Allied Systems Holdings Inc.'s unsecured creditors and private equity owner The Yucaipa Cos. LLC, saying the creditors had long withdrawn their support for the deal.
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.
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.
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.
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.
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.
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.
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.
The Uniform Voidable Transactions Act, which has already been enacted in eight states including California, is the Uniform Fraudulent Transfer Act with a new name and the legal equivalent of a fresh coat of paint. Among other things, the new and improved model statute addresses the mislabeling of transactions due to use of the word “fraudulent,” says Lawrence Peitzman of Orrick Herrington & Sutcliffe LLP.
The Second Circuit recently ruled in favor of Argentina’s central bank in one of the many proceedings initiated by unpaid bondholders, reinforcing the statutory presumption in favor of states’ instrumentalities sovereign immunity and setting a very high threshold for rebutting it, say Laurence Shore and Daniela Paez of Herbert Smith Freehills LLP.
Picking the low-hanging fruit of old backups, archives and legacy data is an excellent starting point for better information governance, says Helen Geib, general counsel for QDiscovery.