Caesars Entertainment Corp. disclosed Wednesday that junior noteholders of its operating arm have been granted a stake in potential litigation proceeds, the casino operators' latest move in an ongoing struggle to get its main subsidiary out from under $18.4 billion in debt.
A California appellate court on Wednesday affirmed a trial court’s ruling that a name partner of bankrupt law firm O’Reilly & Collins should be on the hook for nearly $4.4 million owed to a former partner for unpaid wages and breach of contract, saying the order didn’t violate a bankruptcy court’s automatic stay.
Trump Entertainment Resorts Inc. on Wednesday asked a New York bankruptcy judge to approve a $5 million cash infusion from Carl Icahn-controlled senior lender companies, saying that without the financing, it will run out of funds by mid-January.
A Delaware Chancery judge late Tuesday declined to toss claims from former Quiznos executives looking to be indemnified by the restaurant chain’s nondebtor units from litigation related to its bankruptcy, ruling that the Quiznos affiliates’ reading of the indemnification agreement may not be the only reasonable interpretation.
Creditors of bankrupt Reichhold Inc. on Tuesday blasted the chemical company's $106 million debtor-in-possession financing package and its plan to set up senior secured noteholders as a stalking horse bidder, saying they will drive away other suitors.
The bankruptcy estate of military body armor maker DHB Industries Inc., felled by a massive insider-trading fraud, unveiled a settlement Tuesday with victimized company investors that hands them $37 million in disputed funds in exchange for their financing a liquidation plan.
Energy Future Holdings Corp. has agreed to forgo a $6.4 million judgment against the Sierra Club in a deal that will resolve all of the environmental group’s pending and threatened litigation over alleged Clean Air Act violations at the company's coal plants, according to documents filed in Delaware bankruptcy court.
Bankrupt Freedom Industries Inc., whose January chemical spill is blamed for contaminating drinking water for 300,000 West Virginia residents, told a bankruptcy court Tuesday that its settlement with AIG Specialty Insurance Co. over coverage for the spill has been tied up by objections and delays.
Argentina’s apparent defeat in an epic sovereign-debt dispute with a small group of U.S. hedge funds won’t encourage bondholders in future sovereign restructurings to litigate for full repayment instead of accepting negotiated haircuts, a ratings agency said Wednesday.
Momentive Performance Materials Inc. on Tuesday denied any duty to cover $8.9 million in attorneys’ fees run up by a group of senior bondholders that mounted, and lost, a high-stakes campaign against the company’s Chapter 11 plan in a quest to collect $200 million in disputed payments.
Two federal banking regulators tacitly approved Wells Fargo & Co.’s proposal for keeping its own theoretical bankruptcy from tearing down the U.S. financial system, but said Tuesday that the plan could use some improvements going forward.
A bondholder trustee filed a lawsuit against Caesars Entertainment Corp. on Tuesday calling for the appointment of a receiver to unwind the “unimaginably brazen corporate looting” of a Caesars subsidiary near-certain to enter bankruptcy under an $18.4 billion debt load.
Atlantic City's Revel Casino Hotel has appealed an order issued by a federal bankruptcy judge earlier this month allowing the resort city to collect about $33 million in unpaid property taxes owed by the bankrupt casino through the sale of a tax lien.
A Delaware bankruptcy judge on Tuesday signed off on a deal between Atlantic City and Trump Entertainment Resorts Inc. to auction off tax certificates for $22 million the city claims it is owed, but allows the casino operator to appeal the amounts for the past year.
The CEO of bankrupt energy investment holding company Ampal-American Israel Corp. sued bondholders in New York bankruptcy court on Monday claiming their "immoral, unconscionable conduct" in defaming the company and its leaders stalled a key ethanol project and drove the company toward insolvency.
A California federal magistrate judge on Tuesday chided attorneys in a price-fixing feud between bankrupt Solyndra LLC and a trio of Chinese solar-panel companies, calling their demand for Solyndra's financial files a “blunderbuss request” and accusing Solyndra of obscuring details on the files it has.
Blank Rome LLP has hired a former Clifford Chance LLP partner with more than 20 years of bankruptcy experience, including representing creditors of a defunct baseball team and helping negotiate Sharia-compliant debt financing, to work in the firm's New York office.
Energy Future Holdings Corp. asked the Delaware bankruptcy court on Saturday to approve more than $80 million for employee bonuses in 2015, including compensation for top brass that could exceed $12.3 million under a plan “substantially similar” to a previous one approved in October over objections from the U.S. Trustee's Office.
Billionaire hedge fund manager Philip Falcone is resigning as Harbinger Group Inc.’s chairman and CEO, the company said Monday, capping off a bumpy year that saw Falcone battle over LightSquared Inc.’s bankruptcy and bounce back from a fraud probe by U.S. regulators.
A Delaware federal judge handed Longview Power LLC a trio of victories Monday, affirming the bankruptcy court's related decisions to approve a settlement reducing $360 million in mechanic’s liens, to stay a California lawsuit over $800 million in insurance, and to keep that fight within the Chapter 11 case.
Recoveries by unsecured creditors have reportedly fallen in recent years, and it has been argued that this is because creditors are demanding more security now than in the past. These secured creditors are recovering money that otherwise would have gone to unsecured creditors and equity holders, says James Behrens of Greenberg Glusker Fields Claman & Machtinger LLP.
It is interesting to observe that on the eve of confirmation of Detroit’s Chapter 9 plan, the city settled its disputes with certain bond insurers by giving them rights to certain real estate that, prior to the settlement, had not been part of the proposed plan. This begs the question as to how much additional property the city may have had available, and whether this property could have been used to increase unsecured creditors' r... (continued)
John Doar ran the U.S. Justice Department's Civil Rights Division at perhaps the most chaotic and pivotal time in its history. His passing earlier this month is an occasion for lawyers everywhere to marvel at just how impactful one attorney can be. He didn’t just preside at a historic time, he calmly and coolly shaped it, says Kevin Curnin of the Association of Pro Bono Counsel.
The free movement of goods, services, people and capital across territorial boundaries seems to be fertile ground for litigation regarding the enforcement of foreign judgments, as in the case of Elcoteq Inc., where the U.S. Bankruptcy Court for the Northern District of Texas tackled issues of comity and the extraterritorial reach of the automatic stay, says Debora Hoehne of Weil Gotshal & Manges LLP.
Despite the significant tilt toward technology in how litigation is now conducted, many senior lawyers still delegate tech-related issues to e-discovery specialists or associates at their firms. This is a missed opportunity not just for client development, but also for shaping the way the firm and lawyer are seen in the eyes of corporate counsel, says legal industry business development specialist Jenn Topper.
Not only does the Ninth Circuit decision in Burton v. Infinity Capital Management create a circuit split, but it also exposes lawyers who act at the direction of judges to potential liability — and thereby has the potential of undermining what is ordinarily an orderly process to assist in the administration of the judicial system, says Matthew O’Hara, co-leader of Hinshaw & Culbertson LLP's lawyers professional liability practice group.
Recently, in the Laboratory Partners Inc. and Fisker Automotive Holdings Inc. Chapter 11 cases, Washington Mutual’s ruling on the exculpation of nonestate fiduciaries has come into question, and some Delaware bankruptcy judges appear to be departing from the rigid bar in favor of a more flexible standard, say attorneys with Young Conaway Stargatt & Taylor LLP.
Bankrupt Wedco Manufacturing Inc. may have been within its rights to assert automatic stay violation claims against one of its creditors as a result of the creditor's computer error, but the bankruptcy court may ultimately decide that any damages suffered by Wedco — in the form of time spent by counsel on the contempt motion — were entirely of its own doing, says Doron Kenter of Weil Gotshal & Manges LLP.
Our estimates indicate that some law firms spend up to $8,000 per attorney each year on print-related costs. Although we live in a digital world, hard copy printing will remain an important part of business for years to come. Changing technology, however, offers opportunities to improve efficiencies and save money, say Senthil Rajakrishnan and Ryan Mittman of HBR Consulting LLC.
In addition to establishing limits on the equitable mootness doctrine in bankruptcy, the Ninth Circuit’s Mortgages Ltd. decision last week confirms that the tightened federal pleading standards ushered in by Twombly and Iqbal do not give courts license to summarily disregard a party’s factual allegations at the pleading stage simply because they choose not to believe those allegations, say Steven Wilamowsky and Alix Brozman of Bing... (continued)