Bankruptcy

  • March 31, 2015

    Bankrupt Hipcricket Gets OK For Expedited Plan Process

    A Delaware bankruptcy judge on Tuesday gave the green light for Hipcricket Inc. to move forward briskly with its Chapter 11 plan, which would see ESW Capital LLC acquire the mobile ad company as a going concern.

  • March 31, 2015

    Deal To Keep RadioShack Alive Wins Bankruptcy Court OK

    A Delaware bankruptcy judge agreed Tuesday to wave through RadioShack Corp.'s sale to creditor and shareholder Standard General LP, which aims to keep open more than 1,700 stores and preserve 7,500 jobs, over the objections of several lender constituencies that pressed against the deal during a four-day court hearing.

  • March 31, 2015

    NII Speeds Toward Ch. 11 Trial As Judge Refuses Mediation

    The judge presiding over NII Holdings Inc.'s Chapter 11 proceeding refused Tuesday to order the proponents of a heavily negotiated $4.35 billion restructuring to negotiate with a holdout bondholder group as lawyers prepare to address its complaints at a looming bankruptcy trial.

  • March 31, 2015

    Christie Administration Extends Atlantic City Loan Agreement

    The New Jersey Department of Community Affairs announced Tuesday that Gov. Chris Christie has agreed to extend the terms of a $40 million loan agreement with the municipal government of Atlantic City, New Jersey, helping the city maintain operations in light of a strained budget.

  • March 31, 2015

    O’Melveny Rate Hike Irks Feds In Cal Dive Ch. 11

    A federal bankruptcy monitor on Monday flagged Cal Dive International Inc.’s request to retain O’Melveny & Myers LLP for its Chapter 11 proceedings, saying the expiration of a 15 percent discount on O’Melveny’s hourly rates upon Cal Dive’s entry into bankruptcy has no justification in the marketplace.

  • March 31, 2015

    Exide Investors Seek Class Cert. In Enviro Issues Suit

    Shareholders of bankrupt automotive and industrial battery maker Exide Technologies Inc. on Monday urged a California federal judge to certify their investor class action, arguing that the putative class suffered a common injury when Exide executives hid the company’s failure to comply with environmental regulations.

  • March 31, 2015

    Baupost Presses To Cash In On Bargain-Basement Madoff Claim

    Hedge fund Baupost Group LLC bumped heads with a New York bankruptcy judge Tuesday, pushing to consummate its deeply discounted purchase of a claim against the Bernard Madoff bankruptcy estate that later turned out to be worth $230 million and appeared to be on track until it was halted by the Second Circuit in January.

  • March 31, 2015

    Freedom Industries Agrees To Elk River Spill Cleanup Plan

    Bankrupt Freedom Industries Inc. has agreed to clean up the site of the 2014 Elk River chemical spill, just days after pleading guilty in West Virginia federal court to its role in the disaster, the state Department of Environmental Protection said Tuesday.

  • March 31, 2015

    Rising Star: Brown Rudnick's Sunni Beville

    Brown Rudnick LLP partner Sunni Beville used her self-described “even-handed” negotiating style to achieve favorable sales and reorganizations of alternative energy companies that defaulted on U.S. government loans, earning her a spot among Law360’s 2015 Bankruptcy Rising Stars.

  • March 30, 2015

    Rising Star: Akin Gump's Arik Preis

    Combining tenacity and creativity, Arik Preis has helped constituencies across the restructuring spectrum navigate though large and complex cases, earning the Akin Gump Strauss Hauer & Feld LLP partner a place as one of Law360's 2015 Rising Stars for bankruptcy attorneys.

  • March 30, 2015

    Mid-Continent Says Magistrate Erred In $63M Coverage Fight

    Mid-Continent Casualty Co. on Friday urged a Texas federal court to reject a magistrate judge's recommendation and grant its bid to dismiss a suit claiming it must pay part of a $63 million judgment an architectural firm won after suing a defunct homebuilder for using its designs without permission.

  • March 30, 2015

    RadioShack Judge Urges Peace As Sale Fight Enters 3rd Day

    A Delaware bankruptcy judge questioned Monday whether RadioShack Corp. would be able to survive as a going concern even if he approves a proposed transaction with Standard General LP that aims to keep open more than 1,700 stores, voicing worries that the sale won't close if the fierce fighting continues.

  • March 30, 2015

    Unsecured Creditors On Short End In Altegrity's Ch. 11 Plan

    Risk and information service firm Altegrity Inc. unveiled the workings of its bid to slash $700 million in debt on Monday in Delaware bankruptcy court, detailing a plan that would leave unsecured creditors likely recovering only 2 percent of their more than $82 million in claims.

  • March 30, 2015

    The 2015 Rising Stars, By Firm

    Law360's Rising Stars recognizes attorneys under 40 who have demonstrated outstanding career accomplishments. This year, King & Spalding LLP and Sidley Austin LLP led the pack with seven Rising Stars each, followed by Gibson Dunn and Sullivan & Cromwell LLP with six Rising Stars each, and Jones Day and Kirkland & Ellis LLP with five Rising Stars apiece.

  • March 30, 2015

    Claims Gutted In Harbinger Investor Row Over LightSquared

    A New York federal judge on Monday mostly ended an investor class action against Harbinger Capital Partners LLC over its $3 billion investment in doomed startup LightSquared Inc., saying various claims were either precluded by federal law or insufficiently pled.

  • March 30, 2015

    9th Circ. Bankruptcy Panel Finds Tuition Credits Dischargeable

    A Ninth Circuit bankruptcy panel on Friday ruled that tuition credits offered by a for-profit university as financial aid could be discharged in bankruptcy proceedings because no actual money changed hands, an issue of first impression for the circuit.

  • March 30, 2015

    EFH Bond Ruling Offers Costly Lesson For Creditors

    Deep within a judge’s recent refusal to award Energy Future Holdings Corp. bondholders the lost interest payments from a $4 billion refinancing lies a stark lesson on why lenders’ inattention can neuter their ability to collect make-whole premiums in bankruptcy.

  • March 27, 2015

    Exide Wins Nod For Ch. 11 Plan To Slash Debt By $600M

    A Delaware bankruptcy judge blessed Exide Technologies Inc.'s reorganization plan on Friday, clearing the way for the battery maker to emerge from a lengthy stint in Chapter 11 with its debt load lightened by $600 million.

  • March 27, 2015

    SkyMall Clinches $1.9M Asset Sale To C&A

    An Arizona bankruptcy judge on Friday approved the sale of SkyMall LLC assets to C&A Marketing Inc. for $1.9 million.

  • March 27, 2015

    Exide's $133M No-Prosecute Deal OK'd In Pollution Row

    A Delaware bankruptcy judge on Friday approved a nonprosecution agreement between Exide Technologies Inc. and federal prosecutors requiring the company to admit to illegally handling hazardous waste at its Los Angeles-area battery recycling plant, and to close and clean up the plant, among other remedies costing up to $133 million.

Expert Analysis

  • Navigating Bankruptcy Remand Contrasts In 2nd, 9th Circs.

    Michael H. Strub

    A bankruptcy filing presents a unique opportunity for a debtor and nondebtor to change the course of litigation by, among other things, changing the forum where that litigation proceeds. But the competing interpretations of federal law governing remand by the Second and Ninth Circuits could drag a case on a circuitous path through the state and federal system, say Michael Strub and Jeffrey Reisner of Irell & Manella LLP.

  • Tackling Employment Contract Issues In Bankruptcy

    Excerpt from Lexis Practice Advisor
    Ira L. Herman

    If a debtor in possession becomes party to an employment agreement, the employee’s claims for compensation and severance are usually treated as administrative expense claims. The situation becomes murkier, however, where the debtor signs an employment agreement prepetition and the employee keeps working for the debtor during the pendency of the Chapter 11 case before ultimately being terminated, says Ira Herman of Thompson & Knight LLP.

  • Mediation And The Thorny Issue Of Settlement Authority

    Douglas H. Flaum

    Many mediation orders state that attendees must have “full settlement authority” without providing clarity as to what that term actually means. Attendance by just outside counsel or a corporate spokesperson is not enough, even if someone else with full settlement authority is just a phone call or keystroke away, say Douglas Flaum and Kevin Broughel of Paul Hastings LLP.

  • 'Hypothetical Test' Takeaways From Trump Entertainment

    Debra McElligott

    The Section 365(c)(1) "hypothetical test" adopted by the Third Circuit remains an obstacle for debtors that simply wish to keep their intellectual property licenses. A Trump Entertainment Resorts Inc. opinion, however, hints at the role Section 365(f)(1) can play in limiting the reach of the hypothetical test, says Debra McElligott of Weil Gotshal & Manges LLP.

  • Hedging Contango In The Energy Sector

    Jeffrey Nichols

    With some analysts expecting the crude oil forward price curve to dive into steep contango soon, depending on the rates of production decrease, demand increase and storage availability, this will cause cash-strapped oil and gas companies to explore transactions that are a blend of hedging and financing, says Jeffrey Nichols of Haynes and Boone LLP.

  • A Closer Look At Madoff Victims' PwC, Citco Suit

    Christine Vargas Colmey

    A recent Southern District of New York ruling — bringing Madoff Ponzi scheme victims one step closer to recovery from Citco and PricewaterhouseCoopers — serves as a cautionary reminder to service providers to funds. They ought to be mindful that, even in the absence of contractual privity with investors, their acts and omissions can result in liability to those third parties, say Jonathan Sablone and Christine Vargas Colmey of Nixon Peabody LLP.

  • What Experts Can Say About Inadmissible Facts During Trial

    Jason McDonell

    For reliance material that is not admitted on the stand, consider bolstering the testimony by having the expert describe the evidence generally, but in a way that signals to the jury that the expert has a strong foundation of supporting facts and data. If done well, such testimony can open the door to admitting the evidence, say Jason McDonell and Heather Fugitt of Jones Day.

  • 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)