The Detroit City Council on Friday signed off on two crucial agreements tied to the city's Chapter 9 restructuring plan, one creating a regional water authority that will bring in $50 million over the next 40 years and the other resolving bond insurer Syncora Holdings Ltd.'s objections to the plan.
A Pennsylvania accountant was sentenced on Friday to 40 months in prison for conspiring with reputed members of the Lucchese organized crime family to takeover a Texas-based mortgage lender through extortion and drain it of $12 million, forcing the lender into bankruptcy.
A New York bankruptcy judge on Friday certified a nationwide class of consumers whose stayed $261 million suit accused Kangadis Food Inc. of duping consumers into believing its olive oil was 100 percent pure when it was actually derived from olive pomace, an industrially produced and chemically derived fat.
A Texas bankruptcy judge on Thursday cut claims from a $10 million malpractice suit that alleges Johnson DeLuca Kennedy & Kurisky PC should not have advised a former hospital owner to file for Chapter 11, but he stopped short of dismissing the case.
A Delaware bankruptcy judge gave Entegra Power Group LLC the green light for its Chapter 11 reorganization plan Friday, setting the Florida-based energy marketer on the road to exiting bankruptcy while slashing its $1.5 billion in debt nearly in half.
A New York judge on Wednesday dismissed claims brought by an assignee of notes for defunct Hellas Telecommunications Sarl from suits seeking to recover €102 million ($131 million) pocketed by two private equity firms while allegedly driving the telecom into insolvency, finding the assignee lacks standing.
A Delaware bankruptcy judge Friday denied a bid from a shareholder of Ireland's Blackrock Clinic to be declared the purchaser of Irish Bank Resolution Corp. loans secured by shares in the hospital after the €24 million sale failed to close in connection with a dispute with his financial backer.
A West Virginia bankruptcy judge on Tuesday rejected a water company’s objection to Freedom Industries Inc.’s $2.9 million class action settlement over a chemical spill that contaminated the drinking water in West Virginia, finding the agreement is reasonable.
A New York federal judge on Friday allowed plaintiffs in multidistrict litigation over General Motors Co.'s ignition switch defect to pursue discovery in injury cases that involve accidents that took place after the automaker emerged from bankruptcy in 2009, and in economic loss cases that involve post-2009 vehicles.
A New Jersey judge on Friday refused to toss Direct Access Partners LLC's suit accusing auditing firm Rothstein Kass & Co. PC of negligence for missing a $66 million foreign trading and bribery fraud that contributed to its parent company's bankruptcy, paving the way for discovery, an attorney for the broker-dealer said.
Baker & McKenzie has snagged two attorneys from Kelley Drye & Warren LLP and Winston & Strawn LLP who will expand its transactional practices particularly both mergers and acquisitions and bankruptcy, the firm said Thursday.
The Second Circuit on Friday said General Motors LLC isn't on the hook for a settlement reached in a class action against its pre-bankruptcy predecessor over allegedly faulty transmissions, upholding a district court's ruling that the settlement wasn't an assumed liability under the bankruptcy sale order.
The Second Circuit on Friday dismissed Citibank NA's appeal of a New York federal judge's order preventing it from processing an upcoming payment on $8.4 billion in Argentine sovereign debt, a day after the bank's lawyer argued that the lower court's ruling has "put a gun to our head."
JPMorgan Chase Bank NA asked a New York bankruptcy court to force Chrysler's old bankruptcy trustee to pay out $35 million in 2009 tax refunds, saying the money is fair game as proceeds from the few assets that Fiat SpA didn't purchase in the bankruptcy.
Senior creditors that have battled Momentive Performance Materials Inc. at every step in its bankruptcy demanded Thursday that $50 million in post-petition interest on their bonds be paid in cash rather than through debt in the reorganized entity when its Chapter 11 plan goes live.
A trustee for two bankrupt Florida investment firms on Thursday hit BMO Harris Bank NA with a $24 billion adversary suit, alleging its Marshall & Illsley Bank helped convicted Ponzi scammer Thomas Petters bilk investors out of $3.7 billion.
Creditors of the reorganized hotel media provider formerly called LodgeNet Interactive Corp. sued Wednesday to block a “radical and brazen” restructuring plan crafted by fellow creditor Mast Capital Management LLC, saying it subordinates their debt in violation of LodgeNet’s Chapter 11 plan.
Creditors of bankrupt Prospect Park Networks LLC, which tried to extend the run of soap operas "One Life to Live" and "All My Children" online, blasted the production company's disclosure statement on Thursday, saying it omits key information and touts a plan that cannot be confirmed.
Greenberg Traurig LLP and Alvarez & Marsal NA LLC, the respective former bankruptcy counsel and financial adviser for accused Ponzi schemer TelexFree LLC, agreed Wednesday to reduce their pay by a total of roughly $1 million in exchange for the U.S. Securities and Exchange Commission not opposing their fee applications.
A New York federal judge’s refusal to let Citibank NA process an upcoming payment on $8.4 billion in Argentine sovereign debt has put a “gun to our head” and could land the bank under criminal prosecution in Argentina if allowed to stand, its attorney told the Second Circuit on Thursday.
Judge Robert Drain’s ruling in Momentive Performance Materials provides yet another stake in the ground that telegraphs to creditors that their underlying contracts need to be more explicit regarding when they are entitled to a make-whole claim, says Jessica Liou of Weil Gotshal & Manges LLP.
Decisions interpreting subordination agreements often serve as a reminder of the importance of using precise language. In the Chapter 11 case of Momentive Performance Materials, potential ambiguity created by four words — “junior in any respect” — opened the door to litigation, says Charles Persons of Weil Gotshal & Manges LLP.
Although publication notice is often how debtors provide constitutionally sufficient due process to unknown claimants, a recent opinion in the New Century bankruptcy case serves as a reminder that debtors must be diligent in how they determine when and where to publish notice of a claims bar date, say Jason Harbour and Matthew Mannering of Hunton & Williams LLP.
Ultimately, the appropriate methodology for a cramdown interest rate is a value allocation tug-of-war between debtors, secured creditors and more junior creditors, and Judge Robert Drain’s decision in the Chapter 11 case of Momentive Performance Materials affords additional weight to debtors in that battle, says David Griffiths of Weil Gotshal & Manges LLP.
Judge Robert Drain’s bench ruling in Momentive Performance Materials is unambiguous when it comes to its support for the “formula” approach in determining a cramdown interest rate for a secured creditor and in elucidating the guiding first principles that dictate how to calculate the applicable cramdown interest rate for a secured creditor’s allowed claim in a Chapter 11 case, says David Griffiths of Weil Gotshal & Manges LLP.
A recent Law360 article about the perennial BigLaw concern over how to recruit and retain female and ethnically diverse attorneys addressed a new approach being taken by some law firms — going beyond traditional mentoring programs by creating a sponsorship relationship. Pro bono can also play a part, say David Lash and Merle Vaughn of the Association of Pro Bono Counsel.
Concern has been expressed that a Fifth Circuit opinion in the bankruptcy case of TMT Procurement Corp. will put a chill on the willingness of lenders to enter into debtor-in-possession financing facilities. However, these concerns are unfounded in the context of usual and customary DIP financing, says Judith Elkin of Haynes and Boone LLP.
For a law firm, excess time dedicated to legal research generates waste, either in the form of artificially reduced billable hours or, particularly in flat or contingency fee projects, as overhead eroding the profitability of legal work. By measuring five factors, firms will begin to understand their own opportunities for improving profits, says David Houlihan of Blue Hill Research Inc.
A recent decision in Skumpija v. Warren provides a good opportunity to understand the extent to which lien avoidance benefits a debtor’s bankruptcy estate, as opposed to other lien holders waiting for a boost up the secured ladder, says Gabriel Morgan of Weil Gotshal & Manges LLP.
It would be helpful if bankruptcy courts were to conclude that there is no basis for the courts to oversee the process of payment of individual insureds’ defense fees — as Southern District of New York Bankruptcy Judge Martin Glenn did in the case of MF Global, says Kevin LaCroix of RT ProExec.