The Colorado Supreme Court said Tuesday that bankrupt Morgan Drexen Inc. is subject to state debt-manager regulations and does not fall under the regulations' exclusion of legal services because the company exercises comprehensive control over the services its contract attorneys provide, reversing a lower court's decision.
The unsecured creditors committee for one of Energy Future Holdings Corp.’s two major divisions argued Tuesday that the debtor should only remain in exclusive control of its Chapter 11 case until August, suggesting the units could reorganize under separate plans instead of one overarching strategy.
The New Jersey Division of Taxation on Monday urged a federal bankruptcy court to deny Revel AC Inc.’s objection to its $20 million claim, saying its request is based on a tax credit that was not properly earned and must be repaid.
On Tuesday, the Supreme Court overturned a Seventh Circuit decision and held that bankruptcy courts have the authority to make final decisions on certain legal claims that help liquidate a debtor or adjudicate a bankruptcy proceeding. Here, attorneys tell Law360 why the decision in Wellness International Network Ltd. v. Sharif is significant.
The U.S. Supreme Court on Tuesday endorsed the authority of bankruptcy judges to make final rulings on a slew of issues, averting the upheaval to the bankruptcy scheme that attorneys feared would come if the justices had determined the Constitution prevented the courts from making binding decisions.
The European Banking Authority on Tuesday released final guidelines for when European Union member states can begin unwinding a failed bank, completing a process aimed at providing uniformity for national supervisors across the political and economic bloc.
A Delaware bankruptcy judge on Tuesday rejected a bid by Variant Holding Co. LLC’s CEO and more than a dozen entities that held interests in the debtor’s properties to be paid roughly $50 million from the proceeds of its proposed real estate portfolio sale.
The Eighth Circuit ruled Friday that a dispute between a bankrupt farmer and a creditor over whether earnings were exempt was not put to rest when the farmer handed over checks for the earnings to a creditor, overturning a lower court's decision.
The U.S. Supreme Court declined Tuesday to review a New Jersey ruling that purportedly denied a real estate developer due process and $60 million in compensation for the taking of its land by a municipal government.
The foreign representatives overseeing the New York bankruptcy proceedings of two ICP Asset Management LLC hedge funds accused Barclays PLC of misappropriating $36.5 million in fund money that should have gone to defrauded mortgage-backed securities investors.
New Jersey's Stockton University on Tuesday announced a $22 million proof of claim filed in the Chapter 11 case of Caesars Entertainment Operating Co. over the university's purchase of the now-defunct Showboat Atlantic City casino property, saying an unresolved land use-restricting pact spiked its plans for a new branch.
The U.S. Supreme Court ruled Tuesday that bankruptcy courts have the authority to make final decisions on certain legal claims that help liquidate a debtor or adjudicate a bankruptcy proceeding, a decision that affirms the jurisdictional authority of bankruptcy courts.
We keep a close eye on issues regarding conflicts of interest, professional negligence, privacy and trade secrets, as well as specific areas of employment. These topics are all germane to how CBRE operates its business, says Laurence Midler, executive vice president and general counsel at CBRE Group Inc.
Michigan's attorney general has told the U.S. Supreme Court that it should grant an appeal of a Second Circuit decision freeing two insurers from certain workers' compensation liabilities of previously bankrupt Delphi Corp., saying this exercise of judicial power supplanted the state’s administrative regime.
The Texas State Senate on Thursday passed a bill that would require plaintiffs alleging asbestos damages against a bankrupt company to file a trust claim before lodging a suit, while giving asbestos courts more leeway to stay a trial in such a case, clearing a final hurdle before the bill is sent to the governor's desk to be signed into law.
Westchester Fire Insurance Co. took issue Friday with precious metal miner Allied Nevada Gold Corp.’s Chapter 11 plan disclosure statement, arguing that it appears to mistakenly presume that $52 million in surety bonds it provided can be assumed by the reorganized debtor without the insurance company’s consent.
A Delaware bankruptcy judge agreed Friday to delay consideration of Variant Holding Co. LLC’s real estate portfolio sale at the reduced price of $205 million but will hear a bid from the debtor’s CEO and several entities to be paid $50 million from the proceeds.
The IRS asked the U.S. Supreme Court on Thursday to reject a petition filed by three debtors who claim tax debts can still be discharged in bankruptcy when the applicable tax return has been filed late, saying there's a limit to allowable lateness.
A Delaware bankruptcy judge on Friday blessed Natrol Inc.'s Chapter 11 plan to pay creditors in full from the proceeds of a $132.5 million sale of its nutritional supplement business, rejecting the Internal Revenue Service's contention that funds shouldn't be handed out until the debtor calculates its tax bill.
The liquidating trustee of Bernie Madoff's bogus investment firm on Thursday defended his clawback suit seeking $900 million from the two operators of Madoff's first feeder fund and their families, saying the pair were instrumental in growing the Ponzi scheme and concealing the fraud from government investigators.
The Third Circuit decision in Lehman Brothers Holdings Inc. v. Gateway Funding Diversified Mortgage Services LP — and some strong words from the court in its opinion — have raised concerns that the court may be becoming more rigid in its application of procedural rules, and signals that federal appellate courts may be losing patience with procedural errors, say Carl Solano and Bruce Merenstein of Schnader Harrison Segal & Lewis LLP.
A few of the common issues that can arise in an oil and gas bankruptcy case include the treatment of joint operating agreements, oil and gas leases, and farmout agreements. Specifically, the treatment of oil and gas agreements pursuant to the Bankruptcy Code is based on precisely how such agreements are categorized under state law, says Ira Herman of Thompson & Knight LLP.
While the particular Bankruptcy Code sections most implicated by the U.S. Supreme Court decision in Harris v. Viegelahn are not ones corporate restructuring attorneys generally grapple with, any insight into the Supreme Court’s statutory interpretation framework is always useful. In addition, there are broader lessons to be learned from this one, says Abigail Lerner of Weil Gotshal & Manges LLP.
Developers in today’s South Florida condominium market need to convince their investors to accept a more hands-off approach as major decisions for which investors could traditionally exert control are now subject to the lender’s consent. In addition, many lenders have taken the position that routine bankruptcy-remote safeguards are no longer sufficient, says Rebecca Abrams Sarelson of Arnstein & Lehr LLP.
The nebulous zone of insolvency for nonprofits demands the exercise of proper corporate governance, but for whose benefit? Lemington III is a warning that the insolvency zone can span years during which directors’ actions will be scrutinized. Sweet Briar College, on the other hand, is a demonstration of the difficulties directors face when they perceive the rapid approach of financial calamity and act as they see fit, say attorneys... (continued)
Property held in an entireties estate is held by each spouse in the whole, so neither spouse can unilaterally sever the estate. By extension, such property is generally protected from execution by creditors of one of the spouses. This concept can become particularly interesting — and troublesome, from the perspective of creditors — when spousal guaranties are involved, say George Cass and Tyler Dischinger of Buchanan Ingersoll & Rooney PC.
There has been a rapid and robust growth in the number of companies offering electronically stored information collection, management and processing services. But a recent survey indicated that not all service providers offer the level of expertise needed in today’s world of big data, the cloud and mobile devices, says Barry O’Melia, chief operations officer at Digital WarRoom.
A valid, perfected security interest generally will be enforced by the bankruptcy courts. However, a lender with collateral faces various risks that could defeat its senior status. Adherence to the technical requirements for perfection is essential, says Ira Herman of Thompson & Knight LLP.
Coupled with other recent developments, the Southern District of New York decision in the Chapter 11 case of MPM Silicones LLC, or Momentive, may suggest a turn toward harsher treatment of secured lenders in bankruptcy, say Ron Meisler and Christopher Dressel of Skadden Arps Slate Meagher & Flom LLP.
The Tessera Inc. patent case highlights a useful procedure seldom used in the federal court system — Federal Rule of Evidence 706, which allows for a court-appointed expert. But Rule 706 provides little guidance on when to use such an expert, how to select one or how to work with one. Here are some tips, say Philip Woo and Nathan Greenblatt of Sidley Austin LLP.