Bankruptcy

  • November 21, 2014

    Aereo's Gone, But Internet TV Is Here To Stay

    Aereo Inc. ended its three-year copyright battle with a bankruptcy filing, but the trend that the streaming startup so publicly represented — the increasing popularity of novel, Internet-based services for access to video content — isn't going anywhere.

  • November 21, 2014

    Phoenix Seeks To Cap $10M Software Claim At $500K

    Phoenix Payment Systems Inc. told a Delaware bankruptcy judge Thursday that a $10 million claim lodged by a rival card transaction company over old software code should be capped at $500,000, saying it should not be forced to set aside the full sum while litigation plays out.

  • November 21, 2014

    UniTek Investors Win Access To Emails In Ch. 11 Fight

    Red Oak Partners LLC, a shareholder aiming to challenge UniTek Global Services Inc.'s prepackaged Chapter 11 plan, won access Friday to emails related to the bankrupt company's prepetition marketing but lost a bid to get additional documents from the telecommunications services contractor.

  • November 21, 2014

    LDK Solar Wins Ch. 11 Confirmation, Ch. 15 Recognition

    A Delaware bankruptcy judge granted Chinese solar cell manufacturer LDK Solar Co. Ltd Chapter 15 recognition Friday, and confirmed the Chapter 11 plan for its U.S. affiliates after the debtor resolved objections from the U.S. Trustee’s Office that the prepackaged reorganization strategy shielded too many from liability.

  • November 21, 2014

    Lawyer Called Sociopath By Judge Suspended From Pa. Bar

    A Pennsylvania attorney who was called a sociopath by a federal judge, and is facing a bankruptcy court investigation into allegations he overcharged retainer fees, was suspended for three years Friday over separate claims he mismanaged client trust accounts.

  • November 21, 2014

    AmFin Asks High Court To Review $170M Tax Refund Dispute

    AmFin Financial Corp. has asked the U.S. Supreme Court to review a Sixth Circuit reversal that rescinded a $170 million tax refund sought by the Federal Deposit Insurance Corp., saying the ruling created a circuit split over what property is excludable from a bankruptcy estate.

  • November 21, 2014

    IBRC Gets Thumbs-Up For Sale Of Blackrock Clinic Loans

    A Delaware bankruptcy judge gave Irish Bank Resolution Corp. the nod Friday to sell loans secured by equity in Ireland's Blackrock Clinic to a company owned by beef mogul Larry Goodman, rejecting opposition from a hospital shareholder and saying the evidence the sale was fair was “overwhelming.”

  • November 21, 2014

    Garlock Says Asbestos Racketeering Claims Not Time-Barred

    Garlock Sealing Technologies LLC on Thursday fired back against Simon Greenstone Panatier Bartlett PC, telling a North Carolina judge that the bankrupt gasket sealer’s filings support its claims that the law firm engaged in racketeering while settling personal injury asbestos claims, and that its complaint is not time-barred.

  • November 21, 2014

    SEC Says It Can Pursue Wyly Widow In $261M Judgment

    The U.S. Securities and Exchange Commission urged a New York federal judge on Thursday not to drop tycoon Charles Wyly's widow as one of 16 newly named relief defendants for a currently $261 million judgment, saying it's well established that she can be named in that role despite her current bankruptcy.

  • November 21, 2014

    Aereo Files For Ch. 11 In Bid To Dodge Copyright Suits

    TV streaming service Aereo Inc., whose targeted signals were ruled by the U.S. Supreme Court in June to violate copyrights by retransmitting broadcasts without permission, filed for bankruptcy in a move CEO Chet Kanojia said Friday would allow it to avoid civil copyright litigation liability.

  • November 20, 2014

    Ex-Quiznos Brass Fight To Keep Indemnification Claims Alive

    Former executives of Quiznos, who want subsidiaries of the sandwich chain to indemnify them against fraud claims from ex-stakeholders stemming from the company's bankruptcy, fought to keep their Delaware Chancery case alive Thursday, arguing the units' are wrong in their reading of an indemnification agreement with the brass.

  • November 20, 2014

    Bankrupt Windsor Wins Nod For $189M Debt-For-Equity Plan

    Oil shipper Windsor Petroleum Transport Corp. got the blessing of Delaware bankruptcy judge Thursday for its Chapter 11 restructuring plan, which will hand the helm to bondholders via a $188.6 million debt-for-equity swap.

  • November 20, 2014

    Porter Hayden, AIG Insurers Ink $15M Asbestos Coverage Deal

    Defunct Porter Hayden Co. sought approval Thursday for a $15 million settlement of its asbestos injury coverage dispute with two American International Group Inc. insurers, telling a Maryland federal judge the deal will shield the insurers from future litigation over the asbestos claims and immediately benefit claimants.

  • November 20, 2014

    Exide Gets Nod For Plant Pact With Calif. Enviro Regulator

    A Delaware bankruptcy judge signed off on a settlement between battery maker Exide Technologies Inc. and a California environmental regulator Thursday that paves the way for Exide to restart its idled Vernon, California, lead-recycling plant.

  • November 20, 2014

    Detroit Ch. 9 Empowers Cities To Tackle Soaring Pensions

    The city of Detroit’s emergence from bankruptcy with significant concessions from its retirees offers renewed hope for municipalities across the country to address the accounting gimmickry used to avoid confronting huge employment-related liabilities, experts said at a panel discussion Wednesday.

  • November 20, 2014

    US Bank Must Face Trial Over Role In $215M Peregrine Fraud

    U.S. Bank NA must face at trial claims from the Commodities Futures Trading Commission for almost $36 million in restitution, an Iowa federal judge ruled Wednesday, in a lawsuit accusing the lender of helping bankrupt Peregrine Financial Group Inc.’s former CEO misappropriate $215 million in customer funds.

  • November 20, 2014

    Trump, Icahn Want Atlantic City's Tax Debt Auction Nixed

    Trump Entertainment Resorts Inc. and its top lender, Carl Icahn, objected Thursday to Atlantic City, New Jersey's request to auction tax certificates for $22 million the company allegedly owes, arguing its turnaround plan could be derailed if it's saddled with tax liabilities that aren't yet finally adjudicated.

  • November 20, 2014

    Top NY Court Shoots Down Ch. 7 Bid To Sell Widow's Lease

    An elderly woman's rent-stabilized lease cannot be sold to her Manhattan landlord to satisfy her bankruptcy debt, New York's top court ruled on Thursday, holding that such cut-rate leases amount to a public assistance benefit that is exempt from creditors.

  • November 19, 2014

    Caesars Reveals Plan To Turn Largest Unit Into REIT

    Troubled casino operator Caesars Entertainment Corp. on Wednesday disclosed a proposal to convert its primary arm into a real estate investment trust, a plan floated by the company as part of its closed-door restructuring talks with key creditors.

  • November 19, 2014

    Apple Deal Looks Bad For Bankrupt GT, Noteholders Say

    Noteholders of GT Advanced Technologies Inc. objected Tuesday to a settlement between the bankrupt company and Apple Inc., saying “extraordinary allegations” of Apple's anti-competitive dealings in a recently unsealed document raise questions about the fairness of the settlement.

Expert Analysis

  • Differentiate Your Litigation Practice With Data Security

    Jennifer Topper

    Despite the significant tilt toward technology in how litigation is now conducted, many senior lawyers still delegate tech-related issues to e-discovery specialists or associates at their firms. This is a missed opportunity not just for client development, but also for shaping the way the firm and lawyer are seen in the eyes of corporate counsel, says legal industry business development specialist Jenn Topper.

  • Do Lawyers Enjoy Immunity In Drafting Orders For Judges?

    Matthew J. O’Hara

    Not only does the Ninth Circuit decision in Burton v. Infinity Capital Management create a circuit split, but it also exposes lawyers who act at the direction of judges to potential liability — and thereby has the potential of undermining what is ordinarily an orderly process to assist in the administration of the judicial system, says Matthew O’Hara, co-leader of Hinshaw & Culbertson LLP's lawyers professional liability practice group.

  • Chipping Away At WaMu's Rigid Exculpation Ruling

    Edmon L. Morton

    Recently, in the Laboratory Partners Inc. and Fisker Automotive Holdings Inc. Chapter 11 cases, Washington Mutual’s ruling on the exculpation of nonestate fiduciaries has come into question, and some Delaware bankruptcy judges appear to be departing from the rigid bar in favor of a more flexible standard, say attorneys with Young Conaway Stargatt & Taylor LLP.

  • Stay Violations And 'The Computer Did It' Defense

    Doron Kenter

    Bankrupt Wedco Manufacturing Inc. may have been within its rights to assert automatic stay violation claims against one of its creditors as a result of the creditor's computer error, but the bankruptcy court may ultimately decide that any damages suffered by Wedco — in the form of time spent by counsel on the contempt motion — were entirely of its own doing, says Doron Kenter of Weil Gotshal & Manges LLP.

  • The Print Room: How To Spend Less And Get More

    Senthil Rajakrishnan

    Our estimates indicate that some law firms spend up to $8,000 per attorney each year on print-related costs. Although we live in a digital world, hard copy printing will remain an important part of business for years to come. Changing technology, however, offers opportunities to improve efficiencies and save money, say Senthil Rajakrishnan and Ryan Mittman of HBR Consulting LLC.

  • 9th Circ. Limits Twombly, Iqbal Pleading Standards

    Steven Wilamowsky

    In addition to establishing limits on the equitable mootness doctrine in bankruptcy, the Ninth Circuit’s Mortgages Ltd. decision last week confirms that the tightened federal pleading standards ushered in by Twombly and Iqbal do not give courts license to summarily disregard a party’s factual allegations at the pleading stage simply because they choose not to believe those allegations, say Steven Wilamowsky and Alix Brozman of Bing... (continued)

  • MBS Investors Entitled To Increased Bankruptcy Recoveries

    Shan A. Haider

    In addition to securities litigation, the financial crisis yielded many bankruptcy filings by parties connected to the issuance of mortgage-backed securities. MBS investors, however, have found some solace through increased recoveries in decisions reached in the Washington Mutual and Lehman Brothers bankruptcy cases, says Shan Haider of Perkins Coie LLP.

  • Dewey Partner Clawback Ruling May Hurt New York Law Firms

    Evan C. Hollander

    Unless the recent ruling in the Dewey & LeBoeuf LLP bankruptcy case is overturned on appeal or the New York Legislature amends the state’s fraudulent transfer and partnership laws, partners of New York firms will bear greater risk if their firms fail than will members of many non-New York partnerships. This risk factor might even affect decisions by prospective lateral partners about which firms to join, say attorneys with Arnold & Porter LLP.

  • Crumbs Decision Protects TM Licensees’ 365(n) IP Rights

    Norman S. Rosenbaum

    A recent District of New Jersey decision in the case of Crumbs Bake Shop Inc. is significant because it further illuminates alternative solutions for key unresolved legal questions regarding the treatment of rejected trademark licenses in bankruptcy. Crumbs also has practical implications for the sale of intellectual property portfolios in bankruptcy cases, say attorneys with Morrison & Foerster LLP.

  • A New Playing Field For Distressed Municipalities

    Benjamin D. Feder

    The perception that public employee pension obligations cannot be impaired in bankruptcy suffered a damaging blow nearly a year ago in the Detroit bankruptcy case, and has now been fatally wounded by a ruling in the Chapter 9 case of Stockton, California. While public employee pensions are no longer sacrosanct, impairment will require a lengthy, expensive and determined effort, says Benjamin Feder of Kelley Drye & Warren LLP.