Caesars Entertainment Operating Co. on Wednesday was denied permission to appeal directly to the Seventh Circuit a bankruptcy court decision that left the casino giant’s parent company vulnerable to creditor lawsuits seeking billions of dollars.
A New York federal judge ruled Wednesday that negligence claims brought under state law against Standard Chartered PLC and PricewaterhouseCoopers LLP over Bernie Madoff's Ponzi scheme survive new Second Circuit jurisprudence on the Securities Litigation Uniform Standards Act.
Saladworks LLC constituents urged a Delaware bankruptcy judge Wednesday to reject the casual restaurant chain's disclosure statement, arguing it outlines a Chapter 11 plan that cannot be confirmed.
The Delaware bankruptcy judge overseeing Nortel Networks Inc.'s Chapter 11 said Wednesday he was “strongly inclined” to reject a call to fast-track to the Third Circuit, appeals of a decision parceling out $7.3 billion in liquidation proceeds among the defunct telecom's various units.
Another Lucchese crime family member convicted by a federal jury in New Jersey on racketeering and fraud charges for his role in a $12 million extortion takeover that forced a Texas mortgage lender into bankruptcy was sentenced to 30 years in prison Tuesday, the Department of Justice announced.
A Delaware bankruptcy judge on Tuesday allowed Trump Entertainment Resorts Inc. to retain control of its case until February as implementation of the Atlantic City, New Jersey, casino operator's confirmed Chapter 11 plan remains in limbo, awaiting a Third Circuit decision on rejection of its union's collective bargaining agreement.
A Delaware bankruptcy judge on Wednesday told gunmaker Colt Defense LLC’s creditors and the landlord of its main manufacturing plant to consider extending the company’s lease, refusing a request by bondholders to order an inquiry into the landlord ahead of a planned September auction.
A New York bankruptcy judge refused Wednesday to disqualify Ampal-American Israel Corp.'s trustee or block his firm Tarter Krinsky & Drogin LLP from serving as substitute counsel, finding no conflict of interest despite claims to the contrary.
Treasury Secretary Jacob Lew indicated Tuesday that the Obama administration supports a recent push by Congress to enact legislation that would give Puerto Rico the ability to restructure its debt through the U.S. bankruptcy system, warning that without such an option the island territory's recovery would be more painful.
Though the U.S. economy dwarfs Greece's, lessons from the Greek financial crisis show that the U.S. needs to rein in debt and spending to avoid becoming mired in a perpetually sluggish economy, an expert told a Senate panel Wednesday.
The House Financial Services Committee on Wednesday voted nearly unanimously to cap the compensation for Fannie Mae and Freddie Mac’s top executives after the Federal Housing Finance Agency approved large pay increases earlier this year.
Federal regulators on Tuesday told American International Group Inc., Prudential Financial Inc. and General Electric Capital Corp. to make improvements that will better show how to take them apart without endangering the broader financial system should they fail.
A New Jersey guaranty association for insolvent carriers has sued a third-party administrator of workers' compensation claims for nearly $2.8 million, claiming the company botched the handling of claims against Reliance Insurance Co. after the insurer lapsed into liquidation.
The liquidating trustee of Bernie Madoff's phony investment firm told a New York bankruptcy judge Wednesday that two accountants targeted in a $900 million clawback suit “conspired” with Madoff to conceal the fraud when the U.S. Securities and Exchange Commission came knocking in the early 1990s.
Bankruptcy and restructuring experts told a Senate panel Wednesday that retaining the Federal Deposit Insurance Corp.’s power to unwind a global financial firm was vital even if lawmakers change the Bankruptcy Code to make wind-downs through a court process easier.
A New Jersey judge departed from his predecessor in dismissing hundreds of suits in the consolidated Accutane litigation, General Motors Co. secured a Chapter 11 shield from certain ignition switch liability suits, and asbestos plaintiffs in New York City won a decision that will aid their fight for punitive damages. Here, Law360 looks at the year's most significant product liability cases so far.
A Delaware bankruptcy judge ruled Tuesday that a $230 million lawsuit lodged by Green Field Energy Services Inc.’s liquidating trustee against the oil field servicer's ex-CEO will go before a mediator in January then head to trial late next year if need be.
The Tenth Circuit refused Tuesday to revisit its ruling on bankruptcy courts' jurisdictional limits in a conflict of interest suit concerning a wind farm client, rejecting contentions that the decision contained several "legal and factual misstatements," but changing some wording nonetheless.
DVI Financial Services Inc. and US Bank NA urged the Eleventh Circuit to vacate a Florida jury verdict finding the companies liable for filing a bad faith bankruptcy petition, arguing Monday that the debtor failed to show they acted maliciously.
A Lucchese crime family member convicted by a federal jury in New Jersey for his role in a $12 million extortion takeover that forced a Texas mortgage lender's bankruptcy was sentenced to 30 years in prison Tuesday, U.S. Attorney Paul Fishman announced.
A recent Seventh Circuit decision in a case related to Tom Petters' Ponzi scheme establishes the viability of in pari delicto as a defense potentially available to pre-bankruptcy advisers to a debtor, even in cases where the claims against the outside professionals go beyond an alleged failure to discover misconduct, say Lisa Schweitzer and Grace Kurland of Cleary Gottlieb Steen & Hamilton LLP.
Opportunities for distressed debt funds to buy attractively priced distressed corporate assets have been few and far between in recent terms, but do not expect activity levels to be quiet forever. One market that funds have been eyeing closely is Italy, say attorneys with Orrick Herrington & Sutcliffe LLP.
While current law indicates that claims of affiliated lenders may be treated as separate to the extent documented by different proofs of claim, allowing affiliates to count as different creditors for numerosity purposes in bankruptcy, change may be ahead, say attorneys with Chapman and Cutler LLP.
Creditors are often tempted to file an involuntary bankruptcy petition against their debtor as a way to compel the payment of a debt. But as a recent Second Circuit affirmation in the TPG Troy LLC case shows, the involuntary bankruptcy petition is not just another collection device, says Michael Cook of Schulte Roth & Zabel LLP.
An increasing number of colleges and universities find themselves defending litigation initiated by Chapter 7 trustees administering bankruptcy cases of the parents of past or present students. One congressman is seeking to reverse this trend, says Lynne Xerras of Holland & Knight LLP.
The Eleventh Circuit, in the case of hotel owner Sagamore Partners, expressly rejected the notion that under Florida and federal bankruptcy law, late fees and default interest are somehow inconsistent remedies. The case also reflects an increasing reluctance on the part of appellate courts to dismiss appeals of consummated, confirmed plans, say Steven Wilamowsky and Laura Appleby of Chapman and Cutler LLP.
After the financial crisis, governments are acutely aware of the potential domino effect of triggering a credit event, and they are desperate — and able — to avoid doing so. Credit default swaps may therefore be of diminishing utility as a hedging tool, says Ryan Michael Wilson of Lowenstein Sandler LLP.
The Seventh Circuit’s recent decision in 1756 W. Lake Street LLC v. American Charted Bank is notable for holding that forbearance arrangements can constitute value in the fraudulent transfer context and for measuring such value from the perspective of what the debtor transferor received, rather than what the transferee gave up, says Ann Smith of Michael Best & Friedrich LLP.
A first read of the Southern District of New York’s Marblegate decisions — that involuntary debt restructurings that impair a bondholder’s right to receive payment may violate the Trust Indenture Act — may suggest broad-reaching and potentially problematic implications. A deeper analysis shows a less troubling case, say attorneys with Shearman & Sterling LLP.
The Bayou Shores bankruptcy case and related litigation — which could soon reach the Eleventh Circuit — highlights some of the challenges a health care facility or provider may face in using bankruptcy as a tool to prevent the termination of its Medicare and Medicaid provider agreements, say Rosa Evergreen and Michael Bernstein of Arnold & Porter LLP.