Bankruptcy RSS

  • April 18, 2014

    Barnes & Thornburg Nabs Akin Gump Appellate Pro

    Barnes & Thornburg LLP announced Thursday that it had picked up an appellate and trial lawyer from Akin Gump Strauss Hauer & Feld LLP who handles intellectual property, bankruptcy, insurance, white collar and labor matters to enhance its litigation department in Los Angeles.

  • April 18, 2014

    SPHC Proposes $3M Asbestos Claimant Notification Plan

    Specialty Products Holding Corp. asked a Delaware bankruptcy judge Thursday to sign off on a $3.2 million program designed to alert those exposed to its former asbestos-containing products of the upcoming deadline to file claims in the company's Chapter 11 case.

  • April 18, 2014

    Rising Star: Kramer Levin's Joshua Brody

    From his success in maximizing recoveries and preserving jobs on behalf of creditors of RG Steel LLC to his stellar work on behalf of 1st Mariner Bancorp, the versatility and track record of Joshua Brody of Kramer Levin Naftalis & Frankel LLP earned him a spot on Law360’s list of top bankruptcy attorneys under age 40.

  • April 18, 2014

    Mt. Gox Liquidation Is A Bad Sign For US Investors

    Now that a Japanese court has eliminated any chance of saving bitcoin operator Mt. Gox, experts say U.S. customers shouldn’t get their hopes up for a substantial recovery or any concrete answers about its downfall from its chief executive.

  • April 18, 2014

    GM Says $95M Revstone, PBGC Deal Ignores Its Claims

    General Motors LLC took issue Friday with a settlement bankrupt auto parts conglomerate Revstone Industries LLC reached with the Pension Benefit Guaranty Corp. to resolve more than $95 million in pension-related claims, arguing the deal ignores the auto giant's $10 million in claims against the debtor.

  • April 18, 2014

    Chicago Spire Floats New Ch. 11 Plan With Lender Related

    Following last month’s $135 million deal for the developer of the on-hold Chicago Spire to exit bankruptcy, Garrett Kelleher's Shelbourne North Water Street LP and lender The Related Cos. submitted a plan Thursday for Kelleher’s company to pay its creditors and recommence construction.

  • April 18, 2014

    JPMorgan To Pay Madoff Victims $218M After Judge's OK

    A New York federal judge on Thursday finalized a $218 million settlement between JPMorgan Chase & Co. and victims of Bernard Madoff, ending a class action suit that accused the bank of turning a blind eye to the decadeslong Ponzi scheme.

  • April 18, 2014

    Brookstone Bondholders Decry Terms Of DIP Loan

    A group of bankrupt Brookstone Holdings Corp.’s bondholders took issue Friday with a portion of the specialty retailer’s $96 million debtor-in-possession financing package, arguing that a provision to roll up some of it into prepetition debt will unfairly undercut the value of their bonds.

  • April 18, 2014

    Bankrupt Ashley Stewart Plans $18M Sale To Clearlake Unit

    Plus-sized women’s retailer Ashley Stewart Holdings Inc. on Wednesday canceled a scheduled Chapter 11 auction and said it would move forward with an $18 million stalking horse bid from a unit of private equity firm Clearlake Capital Group LP.

  • April 18, 2014

    Defunct Auto Parts Co. Says Parent's Suit Belongs In Canada

    Bankrupt Canadian car part manufacturer Fenwick Automotive Products Ltd. told a California federal judge on Thursday that a securities suit lodged by its parent company, Motorcar Parts of America Inc., was just an inflated contractual suit spurred by “buyer's remorse" and that it belongs in a Canadian court.

  • April 18, 2014

    AMR Can't Terminate Retiree Benefits, Judge Says

    The bankruptcy judge who oversaw AMR Corp.’s Chapter 11 case on Friday rejected the airline’s contention that it has the right to dump the cost of pension benefits onto retirees themselves, saying the benefits are protected in relevant documents.

  • April 18, 2014

    Liberty Mutual Can't Duck Dissolved Co.'s Asbestos Claims

    A New York appeals court on Thursday affirmed a ruling refusing Liberty Mutual Insurance Co.’s attempt to dismiss asbestos injury suits against a now-dissolved New Jersey valve manufacturer, ruling that corporations that have been dissolved can still be sued under New Jersey law. 

  • April 17, 2014

    Union Says Quantum's $54M Sale Must Respect Contracts

    An employee union at Quantum Foods LLC urged a Delaware bankruptcy judge Thursday to delay consideration of the meatpacker's planned $54 million sale to a unit of Oaktree Capital Management LP, saying the proposed deal violates existing labor contracts.

  • April 17, 2014

    OSG Lines Up $935M In Ch 11 Exit Loans From Goldman Sachs

    Oil tanker giant Overseas Shipholding Group Inc. asked a Delaware bankruptcy judge late Wednesday for the green light on a $935 million exit-financing package from Goldman Sachs Bank USA that the debtor calls the “final pillar” of its strategy to emerge from Chapter 11 protection.

  • April 17, 2014

    SEC Wins Asset Freeze Of Alleged Pyramid Schemer TelexFree

    A Massachusetts federal judge on Wednesday froze bankrupt TelexFree LLC’s assets after the U.S. Securities and Exchange Commission accused it of running a pyramid scheme that raked in hundreds of millions of dollars by deceiving immigrants in Brazilian and Dominican communities.

  • April 17, 2014

    Insurers Can Rescind $20M From Fraudster's Firm, Judge Says

    A California federal judge on Monday let four insurers rescind $20 million of commercial crime policies issued to Namco Financial Exchange Corp., a bankrupt real estate firm whose founder was convicted of fraud, finding that Namco had lied on its insurance applications.

  • April 17, 2014

    Detroit Headed To Mediation Over Water Authority Deal

    A Michigan bankruptcy judge on Thursday ordered the city of Detroit into mediation proceedings with three of its neighboring suburban counties in hopes of striking a deal for a regional water and sewer authority that could ease its transition out of bankruptcy.

  • April 17, 2014

    Skadden To Pay $4.25M In Settlement With Fletcher Trustee

    A New York federal bankruptcy court approved a $4.25 million settlement Tuesday requiring Skadden Arps Slate Meagher & Flom LLP to pay bankrupt hedge fund Fletcher International Ltd. and several creditors to resolve claims the law firm failed to protect the interests of the hedge fund and its investors.

  • April 17, 2014

    Bankrupt Dolan Co. Gets Nod For $10M DIP Package

    A Delaware bankruptcy judge on Thursday gave final approval for the Dolan Co.'s proposed $10 million debtor-in-possession financing package, which the business information firm and mortgage default processor can tap as it moves ahead with a restructuring plan centered on a debt-for-equity swap with a unit of H.I.G. Capital LLC.

  • April 17, 2014

    Carlton Fields Opens LA Office, Adds 2 Ex-Steptoe Attys

    Carlton Fields Jorden Burt said Wednesday it had opened a Los Angeles office and hired two Steptoe & Johnson LLP attorneys, a former Steptoe office managing partner and expert in securities, antitrust, real estate and entertainment litigation as leader of the L.A. office and an employment, bankruptcy and intellectual property pro as a shareholder.

Expert Analysis

  • 1st Circ. Provides Precedent On Post-Petition Interest

    Hugh McCullough

    The First Circuit’s decision in In re SW Boston Hotel Venture is significant for lenders because it demonstrates that a lender’s right to post-petition interest may change during the course of a bankruptcy case. Importantly, it provides a precedent for lenders to obtain post-petition interest, even when they happen to be undersecured on the date of the filing of the petition, say Hugh McCullough and Bradley Duncan of Davis Wright Tremaine LLP.

  • The Future Of Law Firm PR: The Good, Bad And Ugly

    Paul Webb

    There has been a dramatic change in how public relations professionals interact with the news media to promote or protect a law firm’s brand and reputation. But content is queen and has a bright future in law firm PR — it all begins with a plan that should include goals, performance indicators and a system of assessment, say Paul Webb, director of marketing at Young Conaway Stargatt & Taylor LLP, and Kathy O'Brien, senior vice president at Jaffe PR.

  • Light On The Horizon For 'Bad Boy' Guarantors

    Janice Mac Avoy

    In keeping with commercial real estate guarantors’ expectations of what it means to sign a “bad boy” guaranty, the Southern District of New York’s ruling in CP III Rincon Towers v. Cohen has turned the tide against recent decisions that purport to apply “plain language” in a way that causes commercially unreasonable and absurd results, say Janice Mac Avoy and Gregg Weiner of Fried Frank Harris Shriver & Jacobson LLP.

  • Considerations Before Appointing A Bankruptcy Trustee

    Excerpt from Lexis Practice Advisor
    Ilan D. Scharf

    The rights, powers and duties of the bankruptcy trustee should be as broad as possible in order to allow the trustee flexibility to operate and address various issues as they arise. While a trust agreement may simply state that a trustee is authorized to carry out the objectives of the trust and implement the terms of the plan, the better practice is to both provide a broad grant of authority and to also identify specific duties, says Ilan Scharf of Pachulski Stang Ziehl & Jones LLP.

  • Beware 'Jewel' Risks In Lateral Partner Hiring

    Pamela Phillips

    Jewel litigation has been filed after every major law firm bankruptcy in the past 10 years, including Lyon & Lyon, Brobeck, Coudert, Thelen, Heller and Howrey. These lawsuits have produced years of litigation, with similar suits expected in the Dewey bankruptcy. Despite the legal uncertainties surrounding such claims, hiring firms can take steps now to minimize their Jewel risk for any lateral hire, say attorneys with Arnold & Porter LLP.

  • Heartbleed Rains On The Legal Cloud Parade

    David Houlihan

    While the actual breaches are unknown, Heartbleed has the potential to expose all of a lawyer's files stored or transmitted online. The bug raises professional responsibility questions and offers confirmation of the greatest anxieties that the legal industry has about online practice. In fact, the timing is poor for many legal tech providers, following a general industry warming to cloud offerings, says David Houlihan of Blue Hill Research Inc.

  • The 363 Vs. 365 Battle Will Continue

    Kate Doorley

    The outcome of any conflict between Sections 363 and 365 of the Bankruptcy Code would likely turn on the approach adopted by the bankruptcy court. Although in the Spanish Peaks Holdings II matter the court appeared to side with cases holding that Section 363 trumps 365, the facts were unique enough that most courts applying a similar fact-intensive framework might decide that the 365 rights of a lessee or a licensee should be preserved instead, says Kate Doorley of Weil Gotshal & Manges LLP.

  • Recent Trend To Expand ERISA Liability Grows

    Neal S. Schelberg

    In a distinct trend, federal courts have found that, depending on the text of the underlying plan documents, unpaid employer contributions due under a collective bargaining agreement may be viewed as plan assets, such that the representatives of an employer who exercise fiduciary control over those plan assets can be held individually liable for the unpaid amounts — together with interest and penalties — under the Employee Retirement Income Security Act, say Neal Schelberg and Aaron Feuer of Proskauer Rose LLP.

  • Keep Your Audience From Checking Email: 5 Legal Talk Tips

    Michael H. Rubin

    Why do the majority of speakers get polite claps at the end of their talks while a few select others receive rousing applause? Having given more than 375 presentations to legal groups, bar associations, Fortune 500 companies and corporate gatherings, I’ve learned a few things about what not to do. Remember, great speakers don’t tell “war stories.” They don’t even give examples from their own practice, says Michael Rubin of McGlinchey Stafford PLLC.

  • Priorities Change When An Investment Firm Goes Belly Up

    Stephen Bedell

    A Seventh Circuit opinion in a dispute related to the Sentinel Management Group bankruptcy reinforces the importance of the portability of investment accounts carrying commodity customer funds, and recognizes the choice made by Congress to prioritize the stability of the financial markets ahead of other creditors when an investment firm becomes insolvent, say attorneys with Foley & Lardner LLP.