• March 3, 2015

    Pipeline Co. Cal Dive Files For Ch. 11

    Cal Dive International Inc. and its U.S. subsidiaries filed voluntary Chapter 11 petitions in Delaware bankruptcy court on Tuesday, the latest in a series of Texas-based oil and gas companies seeking bankruptcy protection amid a slide in crude prices.

  • March 3, 2015

    Bankrupt Clothier Cache Wins Nod For $18M Liquidation Deal

    Women's clothier Cache Inc. got the blessing of a Delaware bankruptcy judge on Tuesday for an $18 million asset sale to Great American Group LLC, which prevailed in a marathon auction that boosted the price tag by about $6.5 million..

  • March 3, 2015

    Paul Weiss Rips Med. Co. Liquidator Push For Privileged Docs

    Paul Weiss Rifkind Wharton & Garrison LLP on Monday derided an attempt by a liquidator probing an alleged $355 million fraud at China Medical Technologies Inc. to obtain documents connected to the firm’s representation of the company’s audit committee, saying a bankruptcy court correctly found the material to be privileged.

  • March 3, 2015

    EFH Wants Creditors Blocked From Targeting LBO Debt

    Energy Future Holdings Corp. on Tuesday resisted unsecured creditors’ request for authorization to attack holders of $24.8 billion in first-lien debt used to finance the bankrupt energy giant’s boom-era buyout, citing the potential disruption to restructuring negotiations.

  • March 3, 2015

    American Eagle Energy Skips $10M Due On $175M In Bonds

    American Eagle Energy Corp. didn’t make a $10 million interest payment due on $175 million worth of bonds, the Denver-based oil and gas driller said Monday, roughly two months after it announced it was suspending its drilling operations until oil prices improve.

  • March 3, 2015

    Canyon Ranch Soothes Condo Owners' Ch. 11 Complaints

    Lawyers for the Canyon Ranch condominium project backed by Lehman Brothers Holdings Inc. unveiled a settlement Tuesday of $341 million in damages claimed by condo unit holders who fought against the Miami development’s bankruptcy sale to private equity firm Z Capital Partners.

  • March 3, 2015

    Judge In $2.3B Argentina Bond Spat Mulls Citi Injunction

    A New York federal judge on Tuesday deferred a ruling on whether to block Citibank NA from making payments on some $2.3 billion worth of bonds governed by Argentine law, after an attorney for the bank lambasted the injunction as “fundamentally unfair.”

  • March 3, 2015

    Caesars Outlines Plan To Cut $10B In Debt

    Caesars Entertainment Operating Corp. has unveiled its proposal for life on the other side of bankruptcy: $10 billion less in debt and a split into two corporate pieces, one of which will lease the company's real estate to the other, according to a statement filed in bankruptcy court Monday.

  • March 3, 2015

    GTAT Seeks Approval For $100M DIP Financing

    GT Advanced Technologies Inc. asked a New Hampshire judge Monday for approval of a $100 million debtor-in-possession loan after reporting that the financing would be enough to buoy the company through the Chapter 11 process as it continues to regain its footing following a costly fallout with Apple Inc.

  • March 3, 2015

    Burr & Forman Grows Nashville Office With Bankruptcy Pro

    Burr & Forman LLP on Tuesday announced it has continued its hiring spree in Nashville by adding a former Adams and Reese LLP bankruptcy ace as a partner.

  • March 3, 2015

    Ocwen Taps Turnaround Advisers After Latest Losses

    Under siege from bond investors, Ocwen Financial Corp. has retained advisory firms to explore potential debt adjustments amid revelations Tuesday that the mortgage servicer would record a potential $420 million non-cash write-off and accelerate its exit from servicing government-backed home loans.

  • March 3, 2015

    Revstone Makes Final Push For Ch. 11 Plan Confirmation

    Auto parts conglomerate Revstone Industries LLC and several units made a final push late Monday for confirmation of their joint Chapter 11 plan, which includes a major settlement of a nearly $100 million Pension Benefit Guaranty Corp. claim, to start bringing the long and contentious case to a close.

  • March 3, 2015

    Suntech Reaches Ch. 15 Antitrust Deal With Solyndra Trust

    Suntech Power Holdings Co. Ltd.'s foreign liquidators have struck a tentative settlement with the litigation vehicle left behind by defunct Solyndra LLC in a California price-fixing lawsuit alleging Suntech colluded with other Chinese solar panel producers to squeeze out U.S. rivals.

  • March 3, 2015

    JPMorgan To Pay $50M In US Trustee Robo-Signing Settlement

    JPMorgan Chase & Co. on Tuesday agreed to a settlement valued at more than $50 million with the U.S. Department of Justice’s U.S. Trustee Program over allegations that one of its units engaged in robo-signing of mortgage documents, including payment change notices, among other problems.

  • March 2, 2015

    The Donald Thinks Trump Resorts Too Slow On Driveway Lease

    Donald J. Trump, who says bankrupt Trump Entertainment Resorts Inc. owes him thousands of dollars in rent and taxes he paid for the driveway to the now-closed Trump Plaza, said Monday he wants the debtor to stop delaying the decision on what to do with the lease.

  • March 2, 2015

    NY School District Can't Revive Insurance Suit At 2nd Circ.

    The Second Circuit on Monday refused to revive a New York school district's suit against Colonial Surety Co. over the insurer's alleged failure to ensure that electrical work at a middle school would be completed after the contractor on the project filed for bankruptcy, finding the district's claims are time-barred.

  • March 2, 2015

    TelexFree Scheme Took In $1B From 1.9M Investors: Trustee

    The Chapter 11 trustee for TelexFree LLC told a Massachusetts federal bankruptcy court on Friday that the accused Ponzi scheme amassed roughly $1.03 billion from nearly 1.9 million investors in a two-year span preceding the internet phone company’s bankruptcy.

  • March 2, 2015

    Bankrupt Deb Stores Reaches Rent Pact With Simon Property

    Bankrupt Deb Stores Holding LLC reached a deal with landlord Simon Property Group Inc. on Monday that will see the women's clothing chain receive a rent refund if any stores are shuttered mid-month.

  • March 2, 2015

    Driller BPZ Skips $62M Payment With Eye To Restructuring

    Peru-focused energy exploration firm BPZ Resources Inc. elected not to pay creditors $62 million owed on bonds that matured Sunday, giving lawyers a 10-day window to negotiate some relief from a $230 million debt load or else face a likely Chapter 11.

  • March 2, 2015

    Banks Can't Move Bankruptcy Debt Reporting Actions

    A New York federal judge on Monday rebuffed four lenders’ invitations to take control of class action litigation currently playing out in bankruptcy court over whether they purposefully tricked countless consumers into paying off debts that were canceled in bankruptcy.

Expert Analysis

  • Sounding The D&O Liability Alarm For Health Nonprofits

    Brian T. McGovern

    A Third Circuit opinion in the case of Lemington Home for Aged provides a cautionary tale for directors and officers of not-for-profit health care organizations that they may be held to the same standards of accountability as those of for-profit, public corporations, especially when an organization is struggling financially, say Brian McGovern and Erik Graham-Smith of Cadwalader Wickersham & Taft LLP.

  • A New Target For Distressed Investors

    Darius J. Goldman

    Although proceedings commenced only a month ago, Target Canada has piqued the interest of many savvy distressed investors for a number of reasons. Given that Target Canada leased 130 stores, landlords' claims will be a significant factor in creditor recoveries, and their actions should be monitored closely, says Darius Goldman of Katten Muchin Rosenman LLP.

  • A Means To Stave Off Medicare Termination

    Helen H. Suh

    In light of a Florida bankruptcy court decision in the case of Bayou Shores SNF LLC, health care entities may attempt to duplicate a strategy that would buy them time to turn around troubled facilities if faced with the crushing financial impact of Medicare and Medicaid termination, say attorneys with McGuireWoods LLP.

  • Oil Cos. Are Exploring Alternative Investment Financing

    Omar Samji

    Oil companies in need of funding for capital expenditures will increasingly find alternative financing structures attractive as traditional sources of credit tighten. Royalty-based investments may become even more popular than in the past due to their flexible structure, ability to target specific assets and potential bankruptcy advantages to investors, say attorneys at Jones Day.

  • Bankruptcy-Remote Does Not Mean Bankruptcy-Proof

    Sarah K. Kam

    A lender’s expectations about the efficacy of protections designed into a loan structure may be unreasonable. Or, a borrower may simply ignore loan covenants or corporate requirements. In either case, the result could be a bankruptcy filing by an entity that was thought to be bankruptcy-remote, says Sarah Kam of Reed Smith LLP.

  • Pensions Are Now On The Restructuring Table, For Real

    Karol K. Denniston

    Thanks to Judge Chris Klein’s recently issued confirmation opinion in Stockton’s bankruptcy case, no longer will cities be able to avoid dealing with pensions in California out of a fear of facing off with CalPERS and its massive bank account, says Karol Denniston of Squire Patton Boggs LLP.

  • The Lack Of A Clearly Appropriate Cramdown Methodology

    Ashley Dillman Bruce

    All too often, the appropriate methodology for a cramdown interest rate in Chapter 11 is a battle between the debtor and secured creditors, with the formula approach, also termed the “prime plus” approach, being one of the most dangerous for creditors, say Berger Singerman LLP attorneys Lewis Killian Jr., a former bankruptcy judge, and Ashley Dillman Bruce.

  • A Continued Focus On Strategies For Resolving SIFIs

    Cyrus Amir-Mokri

    The Bankruptcy Code's focus on protection of creditor rights can impede the ability of a troubled systemically important financial institution to effectuate a resolution with the speed necessary to preserve value, protect private interests and minimize systemic risk. While a proposed legislation may modify the code to enhance the process, it does not address some important issues, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • FERC's New Merger Review Proposal And Its Impact

    Mark C. Williams

    A proposed policy would significantly expand the scope of the ratepayer protection commitments that must be offered by electric utilities seeking Federal Energy Regulatory Commission approval for mergers and, as a result, may materially alter the financial calculus for companies considering those transactions. The proposed policy may also make recovery from bankruptcy even more challenging and uncertain, say attorneys with Morgan L... (continued)

  • Rejoice In New York’s Revised UCC, But Beware Traps

    G. Ray Warner

    While recent amendments bring most of New York’s Uniform Commercial Code up to date, the state chose not to modernize its entire UCC, as a result of which certain of its provisions do not reflect modern practices, and its version of Article 9 is still out of sync with that of other states, says G. Ray Warner, of counsel at Greenberg Traurig LLP and associate dean for bankruptcy studies at St. John’s University School of Law.