Bankruptcy

  • August 28, 2015

    Baha Mar Fights Contractor, Bank Bids To Toss Del. Ch. 11

    The developer of the stalled $3.5 billion Baha Mar resort argued Friday that Delaware bankruptcy court is the appropriate forum for its reorganization and that granting a contractor and a bank's bids to toss the Chapter 11 in favor of a Bahamian insolvency proceeding would spell doom for the project.

  • August 28, 2015

    7th Circ. Says Ind. Agency Must Pay Medicaid Reimbursements

    The Seventh Circuit on Friday reversed a lower court's decision that had itself reversed a bankruptcy court's decision and ordered an Indiana state agency to pay $1.6 million in withheld Medicaid reimbursements to a hospital that declared bankruptcy in 2012.

  • August 28, 2015

    Signal Gets Nod On Plan For Bankruptcy Auction

    A Delaware bankruptcy judge agreed to approve auction procedures for Signal International LLC, which entered Chapter 11 plagued by labor trafficking claims, that require a suitor to put up at least $71 million to top the floor offer, plus an additional amount that the court will determine in two weeks.

  • August 28, 2015

    Response Genetics Gets Nod For September Asset Sale

    A Delaware bankruptcy judge on Friday approved a plan by Los Angeles-based Response Genetics Inc., which develops diagnostic tests for cancer, to sell its assets to a rival company that has posted a $14 million stalking horse bid.   

  • August 28, 2015

    Wyly Wants SEC's $300M Win Nixed Over Tax Ruling

    Former Michaels Stores Inc. chair Sam Wyly and late brother Charles Wyly Jr.'s estate asked a New York federal judge on Thursday to nix a $299.3 million victory won by the U.S. Securities and Exchange Commission, saying a bankruptcy decision on tax liability puts the award in doubt. 

  • August 28, 2015

    Firms' Fight Against Baker Botts Ruling Looks Futile

    Law firms are trying to use contract terms to get around a U.S. Supreme Court ruling that forces bankruptcy attorneys to cover the cost of defending their fee requests, but experts say their strategy, which faces stiff opposition from a U.S. trustee, is unlikely to win over judges.

  • August 28, 2015

    Madoff Trustee Defends $213M Clawback Suit Against Legacy

    The trustee overseeing the liquidation of Bernie Madoff's fraudulent investment firm on Thursday defended his clawback suit seeking recovery of at least $213 million from account holder Legacy Capital Ltd., telling a New York judge that several red flags must have tipped off Legacy to Madoff's scheme.

  • August 28, 2015

    Altegrity Is Fighting Oklahoma's $25M Tax Claim

    Altegrity Inc. is challenging a $24.7 million tax bill assessed by the state of Oklahoma to one of the security screening firm's subsidiaries, saying on Thursday in Delaware bankruptcy court that the tax bill could cause the company problems as it looks to exit bankruptcy.

  • August 28, 2015

    Petrobras Not Immune To PREPA Kickback Suit, Class Says

    A proposed class told a Puerto Rico federal judge on Thursday that Petrobras Brazil — which allegedly conspired with the commonwealth’s embattled power utility, PREPA, in a fuel kickback scheme — could not claim immunity, because it had related business dealings in the U.S.

  • August 27, 2015

    Allied Nevada Gets Nod To Poll Creditors On Ch. 11 Plan

    A Delaware bankruptcy judge gave Allied Nevada Gold Corp. her approval Thursday to poll creditors on a Chapter 11 plan that aims to transfer a controlling 75 percent interest in a reorganized company to noteholders after the debtor forged a deal that won dissident equity holders' support for the strategy.

  • August 27, 2015

    Santa Fe Gold Gets Nod For Interim DIP To Advance Ch. 11

    A Delaware bankruptcy judge on Thursday cleared Santa Fe Gold Corp. to tap some of the $21.7 million in post-petition financing it has lined up with senior creditor Waterton Global Value LP in a proposal that would roll up a significant portion of its prepetition debt.

  • August 27, 2015

    Quick Judgment Eludes Trustees In $7B Caesars Debt Suits

    A Manhattan federal judge on Thursday denied summary judgment to trustees BOKF NA and UMB Bank NA in their attempts to force Caesars Entertainment Corp. to make good on $7 billion in Caesars Entertainment Operating Co. notes, finding discovery is needed to find out if the casino concern's private equity owners restructured the bankrupt subsidiary's debt in ways that impaired lenders' rights.

  • August 27, 2015

    CFTC Can Restart Claim Against Convicted Ex-Sentinel CEO

    The U.S. Commodity Futures Trading Commission can seek a civil judgment against former Sentinel Management Group Inc. CEO Eric A. Bloom while he appeals his 2014 conviction for running a scheme that bankrupted the investment firm and cost victims $665 million, an Illinois federal judge ruled Thursday.

  • August 27, 2015

    Far-Flung Nortel Units Told By London Judge To Tally Claims

    A London judge on Thursday laid out his reasoning for allowing 19 worldwide affiliates of Nortel Networks Inc., including Nortel Networks UK Ltd., to begin assessing their claims to $7.3 billion in proceeds derived from sales of intellectual property and other assets once belonging to the bankrupt Canadian telecom.

  • August 28, 2015

    CORRECTED: Thornburg Trustee Scores $45M In MBS Suit

    The Chapter 11 trustee for Thornburg Mortgage Inc. won summary judgment Thursday in a suit against RBC Capital Markets LLC when a Maryland federal judge ruled that RBC underpaid Thornburg by $26.3 million when it seized and sold Thornburg-owned mortgage-backed securities, and now owes that amount plus $18.9 million in interest.

  • August 27, 2015

    Baha Mar Unveils Ch. 11 Plan Ahead Of Fight To Ax Case

    The developer of the unfinished $3.5 billion Bahamas resort complex Baha Mar filed a Chapter 11 plan late Wednesday that proposes to have Bahamian creditor claims pass through the case unaffected, days ahead of a Delaware court battle over whether the case should be dismissed.

  • August 26, 2015

    Santa Fe Gold Corp. Seeks 90-Day Sale In Ch. 11 Filing

    Precious metals mining company Santa Fe Gold Corp. filed for Chapter 11 protection in Delaware bankruptcy court Wednesday with a plan to sell its assets, with its senior lender, mining-focused private equity fund Waterton Global Value LP, lined up as stalking horse bidder.

  • August 26, 2015

    $371M Antitrust Suit Against Time, Hearst Goes To 2nd Circ.

    Bankrupt magazine wholesaler Anderson News LLC revealed Tuesday that it will ask the Second Circuit to revive its $371 million antitrust suit against Time Inc., Hearst Communications Inc. and other magazine publishers, which was tossed after a federal court ruled the publishers didn't scheme to put Anderson out of business.

  • August 26, 2015

    Corinthian Colleges Gets Nod For Ch. 11 Plan Confirmation

    A Delaware bankruptcy judge agreed Wednesday to confirm Corinthian Colleges Inc.'s Chapter 11 liquidation plan, which sets up a $4.3 million trust for students, over several objections from government entities who've lodged civil enforcement actions targeting the defunct for-profit educator's lending and recruiting practices.

  • August 26, 2015

    Energy Companies Brace For Ch. 11 As Oil Prices Stay Low

    After a year of speculation on how the energy industry would cope with plummeting oil prices, this fall could be the season for more bankruptcies, restructurings and asset divestiture for oil companies facing a tough lending environment and the looming roll-off of a number of hedges, lawyers say.

Expert Analysis

  • How To Prosecute Contempt Proceedings In Bankruptcy

    Lewis M. Killian

    It has been common for many debtors’ attorneys to file an adversary proceeding against a creditor seeking damages for violation of a discharge injunction. Others file a motion for contempt and the matter proceeds as a contested matter. However, the issue of the proper form of action has not garnered a great deal of attention, says Lewis Killian Jr., of counsel at Berger Singerman LLP and former chief bankruptcy judge for the Northe... (continued)

  • Voting Disputed Claims In Ch. 11 Confirmation Proceedings

    John Hansen

    Disputed claims invoke somewhat obscure provisions of the Bankruptcy Code and the Federal Rules of Bankruptcy Procedure that can be overlooked or lead to tactical positioning during the plan approval process. It is important for Chapter 11 practitioners to be aware of potential traps, says John Hansen of John Hansen Law.

  • Equitable Mootness May Be Alive And Well In 3rd Circ.

    Bruce D. Buechler

    In a recent Third Circuit opinion in the case of Tribune Media Co., Judge Thomas Ambro authored a concurrence that appears to imply that Third Circuit Judge Cheryl Krause’s opinion in One2One Communications LLC calling for the overturning of the equitable mootness doctrine is not shared, says Bruce Buechler of Lowenstein Sandler LLP.

  • SemCrude Bankruptcy's Many Lessons For Energy Traders

    Sherrill_Mark_Sutherland.jpg

    It is apparent that two downstream purchasers — J. Aron & Co. and BP Oil Supply Co. — employed robust risk management practices that included appropriate transaction documentation and credit risk management during their relationship with now-bankrupt SemCrude LP. Those practices certainly played a role in a recent Delaware decision favorable to the purchasers, say attorneys with Sutherland Asbill & Brennan LLP.

  • 3 Ethical Traps For 'Gladiator' Litigators

    Debra Squires-Lee

    Olivia Pope, the D.C. lawyer at the heart of the television drama "Scandal," calls herself and her team "gladiators in suits." By that, she means that she is willing to fight for her clients like a gladiator thrown into the arena. While it may be good for TV drama, thinking like a gladiator in reality can get litigators into trouble. Consider the top three ethical mistakes, say Sherin and Lodgen LLP partners Debra Squires-Lee and C... (continued)

  • Can 50 Cent Successfully Reorganize Despite Adversity?

    Heather L. Ries

    Unfortunately for 50 Cent, the filing of a Chapter 11 bankruptcy case does not automatically result in the discharge of debts by an individual debtor, and the rapper has several claims that may fall into the purview of nondischargeable debts, including litigation claims related to a sex tape scandal, says Heather Ries of Fox Rothschild LLP.

  • 10th Circ. Shields 1st-Time Payment From Preference Attack

    Michael L. Cook

    Defense to preference claims, because it uses phrases like “ordinary course of business” and “ordinary business terms,” has provided ample opportunity for litigation. In accepting a first-time transaction between parties as “ordinary course,” the Tenth Circuit in the case of C.W. Mining Co. rejected the holdings of many lower courts, says Michael Cook of Schulte Roth & Zabel LLP.

  • Top 5 Ways To Help A Law Professional Land A Job

    Mark Newall

    It is a hard truth, but a law degree is a tough thing to have nowadays. Overloaded with thousands of dollars in debt and only a few job prospects that require a law license, many law graduates are looking for ways to manage their careers. We suggest some proven methods to amplify and accelerate your job search, says Mark Newall of Essex Partners Legal.

  • The Citco Settlement And What Lies Ahead For PwC

    Jonathan Sablone

    Citco Group Ltd.’s recent $125 million settlement in Anwar et al. v. Fairfield Greenwich Ltd. has left PricewaterhouseCoopers LLC as the sole defendant in the class action related to Bernie Madoff's Ponzi scheme. PwC, like Citco, has deep pockets, but it perhaps is more vulnerable than other service provider defendants in the case, say Jonathan Sablone and Danielle McLaughlin of Nixon Peabody LLP.

  • Payments To Securitized Loans Find A Safe Harbor, For Now

    Suzanne N. Boyd

    The bankruptcy case of MCK Millennium Centre Parking LLC appears to be one of the first to specifically address whether payments made on loans that are pooled in commercial mortgage-backed security structures are entitled to the safe harbor protections of Section 546(e). However, new developments in the case suggest there might be more to come, says Suzanne Boyd of Alston & Bird LLP.