Bankruptcy

  • March 26, 2015

    State AGs Keep Eye On RadioShack Consumer Data

    With the personal data of 117 million customers potentially up for grabs in RadioShack Corp.’s bankruptcy auction, state attorneys general are keeping a close watch on the auction.

  • March 26, 2015

    Moody's Says Default Still Possible For Atlantic City

    In light of a recent state-sponsored report outlining Atlantic City, New Jersey's troubled financial condition, credit rating agency Moody's Investor Services Inc. issued comments Wednesday saying it believes the proposals made for recovery are credit negative because they leave open the possibility of a default.

  • March 26, 2015

    Former Dolan Co. Execs Sidestep Class Action Over BofA

    A Minnesota federal judge on Wednesday dismissed a proposed class action against former executives of business information provider Dolan Co. accusing them of misleading investors over the company’s deteriorating relationship with one of its largest customers, Bank of America Corp., ahead of its March 2014 bankruptcy.

  • March 26, 2015

    LightSquared Wins Approval To Exit Marathon Ch. 11

    LightSquared Inc. secured a judge’s approval Thursday for a bankruptcy reorganization that lets the wireless startup slash billions in debt, try to revive its failed nationwide network and retain an ownership stake for Philip Falcone’s hedge fund after three years of intense confrontations with creditors.

  • March 25, 2015

    Watchdog Eyes Fees In $275M Standard Register Ch. 11 Sale

    The U.S. Trustee’s Office targeted on Wednesday the breakup fee in bankrupt Standard Register Co.'s proposed $275 million stalking horse sale to a group led by Silver Point Capital LP, arguing it ought to be nixed and the proposed expense reimbursement reduced more than fivefold.

  • March 25, 2015

    Karmaloop Gets Interim Nod For $31M DIP Package

    A Delaware bankruptcy judge on Wednesday blessed a slate of first day motions for Karmaloop Inc., including preliminary approval of a nearly $31 million debtor-in-possession loan, designed to keep the online clothing retailer going while it pursues a sale in Chapter 11.

  • March 25, 2015

    Ex-Watergate Atty Gets Nod As Caesars Bankruptcy Examiner

    An Illinois federal judge on Wednesday approved former assistant Watergate prosecutor Richard J. Davis to oversee the much-anticipated probe of Caesars Entertainment Operating Co.’s prebankruptcy dealings with its parent company that have led to accusations of corporate looting from junior creditors.

  • March 25, 2015

    9th Circ. Denies IRS En Banc Review Of Lavish Spending Case

    The Ninth Circuit has denied an Internal Revenue Service request to revisit en banc a September ruling by a three-judge panel that lavish spending habits are not enough to prove willful tax evasion, in a case involving an insolvent ex-video game executive accused of hiding capital gains from stock sales.

  • March 25, 2015

    Morgan Stanley, RBS Stuck With FDIC's United Western Suit

    A Colorado federal judge refused Tuesday to dismiss Morgan Stanley & Co. LLC and RBS Securities Inc. from a Federal Deposit Insurance Corp. suit over their alleged role in the demise of United Western Bancorp Inc., saying the FDIC's claims about the nature of the mortgage-backed securities deals are solid enough to be pursued further.

  • March 25, 2015

    FDIC's $140M RMBS Suit Time-Barred Under High Court Ruling

    A New York federal judge on Tuesday dismissed a Federal Deposit Insurance Corp. suit seeking $140 million from RBS Securities Inc. and others over soured residential mortgage-backed securities sold to two banks, ruling a recent U.S. Supreme Court decision rendered the suit time-barred. 

  • March 25, 2015

    MF Global Trustee Floats $461M General Creditor Payout

    The trustee winding down MF Global Inc. sought court approval on Wednesday to return $461 million to unsecured creditors of the failed broker-dealer and boost the recovery rate on their allowed claims to almost three-quarters.

  • March 25, 2015

    Ergen Makes Peace With LightSquared's Ch. 11 Exit

    Dish Network Corp. Chairman Charlie Ergen on Tuesday formally ceased opposing LightSquared Inc.’s departure from bankruptcy protection now that the wireless venture has come up with $1.5 billion in fresh financing to repay his hotly disputed debt claim in cash.

  • March 25, 2015

    States Bypass Congress On Asbestos Bankruptcy Overhaul

    West Virginia has become the fourth state to enact legislation aimed at helping bankrupt asbestos manufacturers obtain mitigating evidence from personal injury claimants, signaling a growing eagerness in statehouses to embrace transparency reform measures snubbed by Congress.

  • March 25, 2015

    Salus Demands Hearing On Its 'Superior' RadioShack Bid

    RadioShack Corp. lender Salus Capital Partners LLC on Wednesday urged the judge handling the retailer’s bankruptcy auction to block lawyers from accepting fellow creditor Standard General LP's $128 million offer and rejecting a “materially superior” liquidation bid from Salus.

  • March 24, 2015

    NJ Judge Shoots Down Lucchese Fraudster's Recusal Request

    A New Jersey federal judge on Tuesday refused to recuse himself from sentencing a reputed associate of the Lucchese crime family convicted in the $12 million looting of a mortgage lender, rejecting claims that his comments in another case gave the appearance of partiality.

  • March 24, 2015

    Ocwen Announces Delisting Threat Amid Delayed 2014 Report

    Ocwen Financial Corp.'s stock could soon be removed from the New York Stock Exchange because of financial troubles that have prevented the mortgage servicer from filing its 2014 annual report, it told the U.S. Securities and Exchange Commission on Tuesday, the same day it announced a sale of servicing rights to $25 billion worth of mortgages.

  • March 24, 2015

    Atlantic City Manager Rules Out Bankruptcy For $101M Deficit

    An emergency manager for Atlantic City, New Jersey — which is facing a $101 million budget deficit because of its shrunken tax base — floated $129 million in potential cuts, revenue increases and delayed payments as part of an interim report Tuesday that doesn't mention bankruptcy.

  • March 24, 2015

    Bankrupt Ski Club Founder On Hook For $56M In Back Taxes

    The co-founder of bankrupt private resort Yellowstone Mountain Club LLC must pay more than $56 million in back taxes on hundreds of millions of dollars that he allegedly siphoned from the ski club for personal use, Montana tax officials said on Tuesday.

  • March 24, 2015

    Pillsbury Snags Bankruptcy Pro Who Repped Howrey Partners

    Pillsbury LLP on Monday said it brought on a seasoned bankruptcy veteran who has carved out a niche helping Howrey LLP and Dewey & LeBoeuf LLP partners avoid clawback claims as partner in its insolvency and restructuring practice in San Francisco.

  • March 24, 2015

    RadioShack Refutes Watchdog Scrutiny Over Ch. 11 Advisers

    RadioShack Corp. urged the Delaware bankruptcy court Tuesday to overrule the U.S. trustee’s objections to the debtor's hire of Harry Wilson's MAEVA Group LLC as a restructuring adviser, contending that the bankruptcy watchdog has not identified anything the firm actually did wrong.

Expert Analysis

  • The Difficulties In LIHTC Loan Sales

    Mark V. Bossi

    Because there is currently a very robust market for distressed debt, a lender's first option for dealing with any nonperforming loan is often to look to sell the loan. However, the pool of potential buyers for low-income housing tax credit loans will likely consist only of strategic buyers, says Mark Bossi, co-chairman of Thompson Coburn LLP's financial restructuring group.

  • EMIR's Effectiveness Is Doubtful

    Stephen Phillips

    If a “Lehman-like” collapse were to happen again tomorrow or if a central clearing counterparty becomes insolvent, it is questionable whether regulators would glean useful insights from the costly and far-reaching reporting requirements imposed on the derivatives market by the European Market Infrastructure Regulation, say attorneys with Orrick Herrington & Sutcliffe LLP.

  • 7th Circ. Title Policy Ruling Brings Risks For Lenders

    Sarah R. Borders

    The Seventh Circuit’s recent interpretation of Exclusion 3(a) in the standard-form construction lender’s title policy, in the context of a failed project, places the risk of loss associated with unpaid subcontractors arising from a lender’s decision to stop funding squarely on the construction lender, not the title insurer. There are, however, steps that a lender can take to mitigate this risk of loss, say Sarah Borders and Jeffrey... (continued)

  • Beware Attorney Charging Liens On California Real Property

    Jessica Bagdanov

    Charging liens are valid provisions of a fee contract in California, and such “secret” liens take effect and are perfected upon execution of the contract creating the lien. Yet in the context of a bankruptcy case, a Chapter 7 trustee plays a prominent role in the ultimate treatment of the lien with respect to property of the bankruptcy estate, says Jessica Bagdanov of Ezra Brutzkus Gubner LLP.

  • A Brief History Of Subordination And Recharacterization

    Excerpt from Lexis Practice Advisor
    Ira L. Herman

    In this latest excerpt from Lexis Practice Advisor, Ira Herman of Thompson & Knight LLP offers a brief tutorial on the mechanics and history of equitable subordination and recharacterization.

  • Litigation Or Estimation? A Bankruptcy Court Tutorial

    Doron Kenter

    Well before Anna Nicole Smith, bankruptcy courts were sensitive to the proper disposition of prepetition nonbankruptcy actions against the debtor. A recent decision provides useful benchmarks for understanding the types of disputes that should be resolved in bankruptcy court, rather than the nonbankruptcy courts in which they are otherwise pending, says Doron Kenter of Weil Gotshal & Manges LLP.

  • A Test For The Banking Recovery And Resolution Directive

    Peter J.M. Declercq

    One important question a recent decision by Austrian regulators raises is whether the Banking Recovery and Resolution Directive contemplates the application of its very broad and far-reaching resolution tools to so-called "winding-up vehicles" like the Heta Asset Resolution AG. Heta may indeed prove to be the first test case for the BRRD, say Peter Declercq and Sonya Van de Graaff of Schulte Roth & Zabel LLP.

  • Insurers Should Learn From CoOportunity Health Collapse

    David E. Kopans

    CoOportunity Health’s path toward liquidation does not appear to be the result of any particular problem with the Affordable Care Act's Consumer Operated and Oriented Plan program. Rather, its downfall is a reminder of the uphill battle insurers face when entering a market with little to no claims data to predict accurate rates alongside experienced and established competition, says David Kopans of Jones Day.

  • An Ongoing Tax Refund Saga For Bank Holding Companies

    Andrew I. Silfen

    The Third Circuit recently waded into the ongoing debate over the ownership of tax refunds generated by a failed bank in FDIC receivership but paid to a failed bank holding company due to the existence of a tax sharing agreement. The decision deepens the circuit court divide regarding this issue, which will likely need to be resolved by the U.S. Supreme Court, say Andrew Silfen and Jeffrey Rothleder of Arent Fox LLP.

  • OPINION: Not All That Is Public Should Be Publicized

    Adam C. Sherman

    Although court decisions are public records, that doesn’t mean they should be publicized by the courts on search engines, such as Google. Access alone isn’t the problem. The issue is that these decisions appear prominently atop search results — even when browsing parties are not looking for them. Courts have opened their doors, but they need not remove them entirely, says Adam Sherman of Vorys Sater Seymour and Pease LLP.