Bankruptcy RSS

  • April 22, 2014

    Brookstone's Unsecured Creditors Blast $96M DIP Loan

    Unsecured creditors of bankrupt Brookstone Holdings Corp. objected in Delaware bankruptcy court Monday to the specialty retailer’s proposed $96.3 million debtor-in-possession facility, contending that the package benefits the lenders while burdening the company with fees and expenses.

  • April 22, 2014

    Bankrupt Revstone Seeks Approval Of $14M Subsidiary Sale

    Bankrupt auto parts conglomerate Revstone Industries LLC urged a Delaware bankruptcy judge on Monday to approve the more than $14 million sale of Revstone Wallaceburg Canada Inc., a subsidiary that owns more than 25 million shares of diecast tooling manufacturer Aarkel Tool & Die Inc.

  • April 22, 2014

    Money Centers CEO Says Ch. 11 Trustee Would Hurt Recovery

    Bankrupt casino check-cashing firm Money Centers of America Inc.'s CEO and sole director said Tuesday that allegations of mismanagement from creditors hoping to have a trustee appointed were inaccurate and that the court's assignment of an outside overseer would only squash potential recoveries.

  • April 22, 2014

    Event Rentals Plans Sale To Apollo Following Ch. 11 Auction

    Bankrupt party planner Event Rentals Inc. announced Tuesday it would sell itself as a going concern to funds managed by investment giant Apollo Global Management LLC, which beat out the $124 million stalking horse bidder at a Chapter 11 auction.

  • April 22, 2014

    The Accidental Advocate: Judge John E. Jones III

    Pennsylvania Middle District Judge John E. Jones III talks to Law360 about the surreal aftermath of his divisive ruling against intelligent design as he prepares for yet another potentially explosive trial over Pennsylvania's same-sex marriage ban.

  • April 22, 2014

    DOE Allots $34M To Keep USEC Uranium Project Afloat

    A uranium enrichment project in Piketon, Ohio, may continue through the end of September, running on $34.1 million from the U.S. Department of Energy as the parent company USEC Inc. undergoes Chapter 11 proceedings, according to a Friday motion in Delaware bankruptcy court.

  • April 22, 2014

    Detroit Brings In Muni Finance Expert, Plan Adviser

    An adviser who guided New York City through its 1970s financial crisis will usher Detroit on municipal finance matters, while a financial consultant who has engaged in more than 100 restructurings will evaluate the city’s proposed debt adjustment plan, according to court papers filed Tuesday.

  • April 22, 2014

    GM Asks NY Bankruptcy Court To Bar Ignition-Switch Claims

    General Motors Co. on Monday asked a New York bankruptcy judge to bar claims related to a deadly ignition switch defect by enforcing the 2009 sale order allowing the automaker to exit Chapter 11, while a California district judge put related litigation on hold pending a decision from the bankruptcy court.

  • April 22, 2014

    Rising Star: Wachtell Lipton's Emil Kleinhaus

    Wachtell Lipton Rosen & Katz attorney Emil A. Kleinhaus has represented a number of large banks and corporations in some of the largest bankruptcy cases born out of the 2008 financial crisis, earning him a spot on Law360's list of top bankruptcy lawyers under age 40.

  • April 21, 2014

    CFPB Zeroes In On Student Loan 'Auto Default' Complaints

    The Consumer Financial Protection Bureau released a consumer and industry advisory on the issue of “auto defaults” for a private student loan that are triggered by the death or bankruptcy of a co-signer, saying Tuesday the bureau has received a growing number of borrower complaints on the issue.

  • April 21, 2014

    Evergreen Aviation Trustee Seeks Nod For $4M Asset Sale

    The Chapter 7 trustee for Evergreen International Aviation Inc. asked a Delaware bankruptcy judge Monday to sign off on the sale of the bulk of the company's assets to Jet Midwest Group LLC for nearly $4.3 million.

  • April 21, 2014

    Money Centers Creditor Says Mismangement Warrants Trustee

    The creditor whose contract dispute in part drove casino check-cashing firm Money Centers of America Inc. to Chapter 11 tried to convince a Delaware bankruptcy judge Monday to appoint a trustee, saying the company has been fraught with “dishonesty and gross mismanagement.”

  • April 21, 2014

    5 Auto Litigation Trends To Keep Out Of Your Blind Spot

    Concerns about General Motors Co.'s ignition switch malfunction and the resulting recalls have dominated recent headlines, but 2014 has already seen a slew of other high-stakes suits that implicate whether auto manufacturers can bypass dealerships, will be forced to disclose their mineral suppliers or should fear breach of warranty class actions.

  • April 21, 2014

    Detroit Ch. 9 Plan Confirmation Set For End Of July

    Detroit’s bankruptcy judge has pushed back a few key dates, with the city’s final debt adjustment plan confirmation hearing set to begin July 24, according to a court order issued Monday.

  • April 21, 2014

    Genco Shipping Hits Ch. 11 With Plan To Cut $1.2B Debt

    Dry-bulk cargo ship operator Genco Shipping & Trading Ltd. filed for Chapter 11 bankruptcy in New York federal court Monday, submitting a prepackaged restructuring plan it says will help trim its debt load by an estimated $1.2 billion.

  • April 21, 2014

    Judge Axes MF Global Execs' Appeal Of Customer Pay Ruling

    A New York federal judge rejected former MF Global Inc. executives’ appeal of a ruling that let the fallen brokerage’s liquidating trustee pay off commodities customers and transfer mismanagement claims, saying they were trying to put the trustee in a Sophie-esque position, according to a Monday filing.

  • April 21, 2014

    Rising Star: Sidley Austin's Jessica Boelter

    Jessica Boelter of Sidley Austin LLP thrives in the face of chaos and uncertainty, a skill that helped her lead the bankruptcy and sale of Rodeo Creek Gold Inc., draft Tribune Co.’s reorganization plan, and score a spot among Law360’s top eight young bankruptcy attorneys.

  • April 21, 2014

    Union Deal Brings NYC Bus Operator Closer To Ch. 11 Exit

    Bankrupt New York City school bus operator Hoyt Transportation Corp. is another step closer to resuming operations after reaching a deal for a new collective bargaining agreement with its bus drivers' union, the company told a New York federal judge Thursday.

  • April 21, 2014

    High Court Won't Hear Appeal Over AMR Make-Whole Fees

    The U.S. Supreme Court on Monday declined to hear a bid to overturn a decision that AMR Corp. was not required to pay noteholders a penalty fee for redeeming bonds before they matured to secure $1.5 billion in aircraft financing.

  • 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.

Expert Analysis

  • Mandatory Pro Bono Is Not The Answer For Practitioners

     Amanda D. Smith

    The State Bar of California has decided to follow New York's lead and require prospective attorneys to record 50 hours of pro bono service in order to be eligible for admission. While we applaud the intentions behind these initiatives, there are a number of reasons why state bars should limit any mandatory pro bono requirement to this context, rather than extend it to licensed attorneys as some have suggested, say attorneys with the Association of Pro Bono Counsel.

  • Lehman Court Imposes New Limitations On Professional Fees

    Richard L. Epling

    A recent ruling in Davis v. Elliot Management Corp. (In re Lehman Brothers Holdings Inc.) steadfastly asserts that payment of creditors committee members’ professional fees must be subject to the “substantial contribution” standard, even when such payments are agreed upon by the relevant constituencies. This means that payment of indenture trustees’ legal fees could be controversial in future Chapter 11 cases in the Southern District of New York, say attorneys with Pillsbury Winthrop Shaw Pittman LLP.

  • Fla. Court Tips Scales In Favor Of Involuntary Bankruptcy

    James P. S. Leshaw

    In light of a recent Florida state court decision in Sargeant v. Al-Saleh, there is now a question as to whether a Florida court has authority to direct a Florida judgment debtor to turn over any asset physically located outside the state, thus tipping the scales in favor of filing involuntary bankruptcy petitions as a method to invoke the broad powers of a bankruptcy court, says James Leshaw of Leshaw Law PA.

  • 1st Circ. Sets 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.