Bankruptcy

  • October 31, 2014

    Hedge Fund Manager Denies Bad Faith In Nautilus Debt Buy

    Hedge fund York Capital Management on Friday objected to letting a bankrupt shipper probe its buildup of an operating unit's debt, denouncing the shipper's claims that York may have taken the position in order to sabotage the container shipping venture’s restructuring efforts.

  • October 31, 2014

    NetBank Tells High Court $5.7M Refund Ruling Is A Deviation

    Bankrupt Internet banking pioneer NetBank Inc. told the U.S. Supreme Court that an Eleventh Circuit ruling that forwarded a $5.7 million tax refund to the Federal Deposit Insurance Corp. instead of NetBank conflicts with three other circuit court decisions and fails to consider equality of distribution precedent.

  • October 31, 2014

    Bankrupt Exide Gets Nod To Extend $560M DIP Loan

    A Delaware bankruptcy judge signed off Friday on Exide Technologies Inc.'s proposed extension of its $560 million debtor-in-possession financing package, but only after the battery maker agreed to terminate the Chapter 11 exclusivity period.

  • October 31, 2014

    10th Circ. Unfazed By 9th Circ. Ruling In Ex-CEO's Tax Suit

    A recent Ninth Circuit opinion heightening the standard for proving willful evasion of taxes was not enough to convince a Tenth Circuit panel to rehear its decision finding that the former CEO of cable television company FrontierVision Partners LP must pay his $14.3 million tax bill.

  • October 31, 2014

    Ex-Lawyer Sentenced To 6 Years For Stealing Client Funds

    A former attorney in Virginia was sentenced to six years in federal prison Friday and ordered to pay $1.1 million in restitution after he admitted to stealing funds from his bankruptcy clients and committing fraud schemes using credit cards in the names of his mother and wife.

  • October 31, 2014

    Madoff Victims Can't Look To Trustee To Save Picower Suit

    The judge presiding over the liquidation of Bernard L. Madoff’s defunct firm refused on Thursday to let several investors suing the estate of Ponzi scheme beneficiary Jeffry Picower in Florida take discovery in an attempt to salvage their claims from the trustee winding down the Madoff estate.

  • October 30, 2014

    Investors Blast OCZ Trustee's Bid To Halt $7.5M Settlement

    The lead plaintiffs in a shareholder class action against bankrupt OCZ Technology Group Inc.’s former brass in California federal court blasted on Thursday an effort by the estate’s liquidation trust to halt consideration of a $7.5 million settlement by asking the Delaware bankruptcy court to enforce Chapter 11’s automatic stay.

  • October 30, 2014

    Variant Gets Two-Week Breather From Foreclosure Action

    A Delaware bankruptcy judge on Thursday granted a preliminary injunction sought by real estate company Variant Holding Co. LLC, temporarily blocking a foreclosure sale of properties owned by one of its non-debtor subsidiaries.

  • October 30, 2014

    Harbinger Fails In Attack On $1.7B LightSquared Guaranty

    The New York bankruptcy judge handling LightSquared Inc.’s knotty Chapter 11 case held Thursday that Harbinger Capital Partners LLC, the debtor’s top equity holder, cannot eliminate a guaranty on $1.7 billion in debt owed to a group of secured lenders.

  • October 30, 2014

    Stockton Wins Court Approval Of Ch. 9 Plan

    The city of Stockton, California, won court approval Thursday for its plan to exit Chapter 9 bankruptcy, with a judge rejecting holdout creditor Franklin Templeton Investments' argument that the plan was unfair because it would satisfy the city's pension obligations in full while forcing Franklin to accept a recovery of less than 1 percent.

  • October 30, 2014

    Attorney Charged With Forging Bankruptcy Judge's Signature

    A Long Island attorney has been indicted on charges of forging a New York bankruptcy judge's signature in a phony 2013 order, prosecutors said Thursday.

  • October 30, 2014

    US Asks 9th Circ. To Rehear Lavish Spending Tax Case

    The United States on Wednesday asked the Ninth Circuit to revisit en banc a September decision by a three-judge panel that lavish spending habits aren't enough to prove willful tax evasion, saying that the reversal created a split with several other circuit courts.

  • October 30, 2014

    MF Global Reaches $27M Settlement Over Metal Manipulation

    MF Global Inc. has reached settlements in two class action lawsuits alleging price manipulation in the palladium and platinum markets that will allow plaintiffs to file $21.1 million in claims in MF Global’s bankruptcy and receive over $6 million in cash, according to Wednesday New York federal court filings.

  • October 30, 2014

    GTAT Judge Intends To Unseal Records On Apple Spat

    The judge presiding over GT Advanced Technologies Inc.’s secretive bankruptcy on Thursday endangered a settlement of the contract dispute with Apple Inc. that destroyed GT's business, saying that a key document both companies want sealed should be made public.

  • October 30, 2014

    AgFeed Shareholders Blame Hormel For Ch. 11

    The equity committee for bankrupt AgFeed Industries Inc. launched an adversary action Wednesday alleging ex-business partner Hormel Foods Corp. made “false representations” and knew about claims it had asserted against the hog production company that led to an arbitration award that the debtor says ultimately pushed it into Chapter 11.

  • October 29, 2014

    Akin Gump Bankruptcy Atty Decamps To Rejoin Gardere

    An Akin Gump Strauss Hauer & Feld LLP bankruptcy attorney left the firm to become a partner at Gardere Wynne Sewell LLP, where he had started his legal career as an associate, the firm announced Wednesday.

  • October 29, 2014

    Attys Flubbed Trial Against Doctors' Group, Ex-Client Claims

    A former client of Houston's Pendergraft & Simon LLP has sued two of the firm's lawyers for $3 million in a case that accuses the lawyers of a laundry list of alleged flubs in a dispute between a doctors' group and its former president and improperly advised the group to pursue Chapter 11 bankruptcy.

  • October 29, 2014

    Wyly Bankruptcy Atty Says Case Proceeding 'By The Book'

    Counsel representing Sam Wyly in his bankruptcy told a New York federal judge in a letter made public Wednesday that the Texas tycoon hasn’t been liquidating assets unbeknownst to them, firing back against the U.S. Securities and Exchange Commission’s bid for an extended asset freeze that would apply to Wyly’s family members and third parties.

  • October 29, 2014

    Bankruptcy Watchdog Backs Tossing Global NAPs Ch. 11

    The federal bankruptcy watchdog threw its support Wednesday behind bids to throw out Global NAPs Inc.'s Chapter 11 petition, arguing creditors will be better served by the receivership in Massachusetts, already in its fourth year, and that the debtor filed in “bad faith.”

  • October 29, 2014

    Bankrupt AWI Gets Nod For $288M Sale To C&S

    A Delaware bankruptcy judge on Wednesday blessed cooperative food distributor Associated Wholesalers Inc.'s $288.1 million sale to stalking horse C&S Wholesale Grocers Inc., which outlasted industry rival SuperValu Inc. at an auction last week.

Expert Analysis

  • 'Green Revolution' Is Here — Try Not To Lose Your Head

    William J. Simonitsch

    "Ganjapreneurs" beware. Cannabusiness is fraught with risk, even when legal under state law, and bankruptcy does not appear to be an option for anyone in the supply chain, says William Simonitsch of K&L Gates LLP.

  • Tips To Help Prevent Selective Rejection In Sale-Leasebacks

    Edward C. Prokop

    Buyer-landlords in multiproperty sale-leasebacks usually assume that the seller-tenant cannot selectively terminate sites from the lease, leaving the buyer-landlord with ownership of underperforming sites and no related rental stream. Unfortunately for buyer-landlords, bankruptcy courts provide an opportunity for seller-tenants to achieve exactly this result, say Edward Prokop and John Patrick White of Sidley Austin LLP.

  • When Things Do Not Go As Planned In A Bankruptcy Sale

    Jeffrey A. Krieger

    The somewhat problematic issue in a bankruptcy sale is determining what rights or obligations, if any, do the parties have under the agreement between the date of execution and the date the court enters an order approving the sale. This is precisely the issue the parties encountered in the Chapter 11 case of Hot Dog on a Stick, says Jeffrey Krieger of Greenberg Glusker Fields Claman & Machtinger LLP.

  • The Legal Professions’ Curious Under-Use Of 2nd Opinions

    Judge Wayne D. Brazil

    As conscientious professionals who are required to address problems with notoriously elusive dimensions, lawyers should consider securing second opinions in a much wider array of circumstances than has been the norm, says Judge Wayne Brazil, a neutrual with JAMS and former magistrate judge in the U.S. District Court for the Northern District of California.

  • A Reasonable Measure Of Unreasonably Small Capital

    Brad Eric Scheler

    A Delaware district court ruling in the case of SemCrude LP is an important reminder that in determining whether a debtor had unreasonably small capital to support a fraudulent transfer claim, a court’s analysis must be based on reasonable foreseeability regarding whether the debtor would be able to continue to generate sufficient cash flow after the transaction, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Regulatory Mismanagement May Cause CERCLA Exposure

    Lester Brown

    The takeaway from California Department of Toxic Substances Control v. Jim Dobbas Inc. is that government agencies that mismanage response actions may now be exposed to — at the very least — cost recovery or contribution litigation where there is evidence the agency made management decisions that led to contamination, or allowed it to continue to be released, say attorneys at Perkins Coie LLP.

  • Use Social Media For Legal Service Only As A Last Resort

    Steven Richard

    Courts remain largely skeptical about allowing litigants to serve and notify evasive parties of legal proceedings through their social media accounts. A recent split ruling by the Oklahoma Supreme Court shows the competing considerations, say Steven Richard and Britt Killian of Nixon Peabody LLP.

  • Economic Impact On Mortgage Lenders From Strip-Off Law

    Ilyse M. Homer

    Recent circuit court case law allowing “Chapter 20” debtors to strip off valueless junior liens on their homes may result in mortgage lenders having their junior-lien rights eviscerated, rendering them general unsecured creditors with no recourse to the collateral securing their indebtedness, say Paul Avron and Ilyse Homer of Berger Singerman LLP.

  • An Associate's Perspective On Business Development

    Jason Idilbi

    Let’s face it: Taking friends or acquaintances to Justin Timberlake concerts or golf at the Ocean Course is not how we as law firm associates are going to develop business. Our primary value comes not from out-of-office networking jaunts but from bearing a laboring oar for our partners. Which is why our best approach to business development is more likely from the inside out, says Jason Idilbi of Moore & Van Allen PLLC.

  • NY Court Limits Rights Of Assignees, Indenture Trustees

    David M. Zensky

    A New York state court decision in Cortlandt St. Recovery Corp. v Hellas Telecommunications will complicate the ability of noteholders to pursue a fraudulent conveyance action — one of several reasons the decision is concerning, say attorneys with Akin Gump Strauss Hauer & Feld LLP.