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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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)
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.