A Delaware bankruptcy judge gave the nod Thursday for many of Highway Technologies Inc.'s first-day requests, including up to $3 million in bankruptcy financing and permission to immediately sell signs and other equipment the company had left out on active roadway projects.
School Specialty Inc. won confirmation of its Chapter 11 plan Thursday, with a Delaware bankruptcy judge giving the green light to a reorganization that will see the educational supply company emerge from court protection owned by its noteholders.
A bankruptcy judge in Delaware on Thursday approved the first-day requests of Ohio-based sister commercial printing companies D.B. Hess and The Press of Ohio, both owned by private equity firm Wellspring Capital Management LLC, including up to $20 million in financing to help the firms sell off their assets.
The Ninth Circuit ruled Thursday that a broke law school graduate who amassed $85,000 in student debt wasn't obligated to repay the loans because he couldn't find a job that would pay him enough to satisfy loan payments exceeding $800 per month.
The trustee overseeing the California "Girls Gone Wild" bankruptcy derided efforts by founder Joe Francis to halt the bankruptcy of a subsidiary involved in the purportedly fraudulent overseas transfer of company trademarks on Thursday, saying his emergency motion was filed an hour and a half too late.
A Florida federal jury Wednesday sided with the Federal Deposit Insurance Corp. in its malpractice suit against Icard Merrill Cullis Timm Furen & Ginsburg over the firm's representation of a developer in a $5.3 million real estate loan.
China Natural Gas Inc. on Wednesday urged a New York bankruptcy judge to throw out the involuntary Chapter 11 proceedings commenced by a hedge fund owned by one of its directors, saying the filing was part of the directors' effort to gain control of the company.
A New Jersey bankruptcy judge on Thursday signed off on Canadian clothing retailer YM Inc.'s $22 million purchase of the assets of rival Big M Inc., the bankrupt owner of the clothing stores Mandee, Annie Sez and Afaze.
LeClairRyan said Monday it has landed for its Boston office a Litchfield Cavo LLP commercial litigator who specializes in lender liability and insurance defense as well as bankruptcy matters.
Affiliates of German insurer and financial services giant Allianz SE on Thursday settled their claims accusing accounting firm Grant Thornton LLP of helping to conceal a $1 billion revenue hole at now-bankrupt Internet company Winstar Communications Inc.
A former partner of Dewey Ballantine LLP — the predecessor of bankrupt Dewey & LeBoeuf LLP — with a pending claim against the firm for outstanding debt has called a proposed hearing delay abusive and unnecessary.
A New York bankruptcy judge on Thursday approved a settlement that BlackRock Inc.'s bankrupt real estate investment trust Anthracite Capital Inc. reached with BlackRock and two banks, allowing Anthracite to bring in $50 million and begin winding down the estate.
Until we have greater inclusion, and significant numbers of women, attorneys of color and LGBT attorneys working on our cross-border and complex litigation cases, our approach to practicing will be pedestrian and provincial, says Traci Rollins, a partner in Squire Sanders LLP's restructuring and insolvency practice.
Ally Financial Inc. will pay $2.1 billion to win peace with creditors of its former mortgage subsidiary, bankrupt Residential Capital LLC, nearly triple the auto lender’s original settlement offer, according to documents filed Thursday in New York bankruptcy court.
A New York federal judge on Wednesday dismissed appeals by customers who hold gift cards from bankrupt book seller Borders Group Inc. and sought refunds, saying the appeals are moot because the company’s distribution plan can't handle the approximately $210.5 million in claims.
Former principals at bankrupt Chem Rx Corp. urged the Second Circuit on Wednesday to kill a trustee lawsuit aimed at forcing them to give up $106 million they made in the pharmacy’s leveraged buyout.
Two Ohio-based sister commercial printing companies, both owned by private equity firm Wellspring Capital Management LLC, filed for Chapter 11 bankruptcy protection Wednesday with a prepacked plan in hand and rival company Bang Printing of Ohio at the ready with a $19 million stalking horse bid.
The U.S. branch of French holding firm Atari SA on Wednesday asked a New York bankruptcy judge to greenlight its plan to sell off its assets piece by piece, after it failed to garner acceptable offers from potential stalking horse buyers to bid on the game maker's entire business.
Cooper-Booth Wholesale Co., a convenience store supplier serving the Mid-Atlantic, on Tuesday filed for Chapter 11 protection in Pennsylvania, saying its main bank account was seized by the government as part of an investigation into a Cooper-Booth customer that allegedly smuggled cigarettes between states.
A California federal district judge on Tuesday rejected Orrick Herrington & Sutcliffe LLP’s argument that a bankruptcy judge lacked authority to make a ruling that the law firm wrongfully hired former partners of defunct Heller Ehrman LLP.
The decision by the U.S. Bankruptcy Court for the District of New Mexico in In re Deming Hospitality LLC demonstrates that courts will grant wide latitude to debtors at the disclosure statement stage to allow them to explain or resolve any potential defects or concerns during the plan confirmation process — but even the most lenient courts have their limits, says Kyle Ortiz of Weil Gotshal & Manges LLP.
In most respects, a bankruptcy sale is nearly identical to a sale of assets outside of bankruptcy. The differences lie in five specific areas, says Neil Herman of Morgan Lewis & Bockius LLP.
Commercial agreements usually provide for extraordinary termination rights or even automatic cancellation in the case of insolvency of one of the parties. Such a cancellation right may, however, contradict the general principles of German insolvency law, say Dr. Juergen van Kann and Dr. Rouven Redeker of Fried Frank Harris Shriver & Jacobson LLP.
The U.S. Securities and Exchange Commission has long made clear that when information about a municipal issuer is reasonably expected to reach investors and the trading markets, those disclosures are subject to anti-fraud laws. But the recent Harrisburg, Pa., enforcement represents the first time the SEC has charged a municipality for misleading statements made outside of its securities disclosure documents, say attorneys with Day Pitney LLP.
The pros of using predictive coding far outweigh the cons. Given the heavy pressure on law firms and in-house counsel to reduce discovery costs, as well as the Justice Department's recent stance on the subject, it appears predictive coding will continue to emerge from the obscure world of legal technology to the mainstream of legal practice, say Michael Moscato and Myles Bartley of Curtis Mallet-Prevost Colt & Mosle LLP.
As savvy bankruptcy litigators begin to consider the strategic possibilities of spoliation allegations in connection with electronically stored information preservation obligations, the prudent DIP attorney will also consider potential defenses against such tactics. The ABA working group has proposed one such possible solution in the ESI Protocol, says Joanne Lee of Foley & Lardner LLP.
A prepackaged Chapter 11 filing consists of three significant groups of pleadings: the administrative pleadings, the “first day” substantive pleadings and the plan-related pleadings. For any company to file and enter into Chapter 11 smoothly, counsel and advisers must work with the company for at least several weeks to conduct due diligence and understand all aspects of the business, says Morris Massel of Simpson Thacher & Bartlett LLP.
The savings and loan holding company regulatory regime established by the Dodd-Frank Act appears to be having the ultimate effect of reducing the number of SLHCs, especially those that are predominantly insurance enterprises, say attorneys with Debevoise & Plimpton LLP.
As a matter of strategy, it can be vital to understand the differing burdens of proof under various provisions of the Bankruptcy Code and when those burdens shift. For example, the Southern District of New York recently clarified the distinction between section 362(d) and 363(e) burdens of proof in In re AMR Corp., say attorneys with Duane Morris LLP.
When faced with default under a loan agreement, a company may request that the lender forbear for a limited period of time from taking legal actions in order to allow the company time to resolve its financial problems. In such a scenario, parties should consider a number of items in determining whether a forbearance agreement is appropriate, say George South and Daniel Egan of DLA Piper LLP.