Bankruptcy

  • September 29, 2016

    Objectors Say Icahn Only Winner In $2M Tropicana Move

    Targets of a Tropicana Entertainment LLC bankruptcy lawsuit have objected to a $2 million cash infusion for the company’s litigation trust, calling the proposal a last-ditch effort by investor Carl Icahn to collect from the casino company's former owners.

  • September 29, 2016

    SFX Inc. Judge Nixes Equity Committee, OKs Creditor Poll

    A Delaware bankruptcy judge on Thursday denied a bid from SFX Entertainment Inc. shareholders to form an official equity holders committee late in the case after giving the music festival promoter the OK to poll creditors on its Chapter 11 plan that features a $300 million debt-for-equity swap with noteholders.

  • September 29, 2016

    8th Circ. Affirms Ch. 7 Conversion For ‘Porn Troll’ Atty

    A bankruptcy panel for the Eighth Circuit on Thursday rejected an argument by an attorney who has been indefinitely suspended from practice over various instances of misconduct, including conducting baseless litigation for a so-called porn troll company, that his bankruptcy was improperly converted to Chapter 7.

  • September 29, 2016

    Bankrupt Firm's Execs Can't Dodge Breach Of Duty Suit

    A suit alleging two former executives of bankrupt Baxano Surgical Inc. breached their duty to the company survived a motion to dismiss Thursday when a Delaware federal judge found that the complaint contained enough facts to move the case forward.

  • September 29, 2016

    Ex-ITT Tech Instructors Assert $20M Wage-And-Hour Claim

    A proposed wage-and-hour class action brought in California on behalf of adjunct instructors of ITT Tech is seeking authority to file a $20.2 million claim in the now-shuttered for-profit college’s bankruptcy case, according to court documents filed Thursday.

  • September 29, 2016

    Feds Say T-Note Options Trader Lost $14M To Fake Profits

    An Illinois trader allegedly exploited a Chicago Board of Trade rule to generate millions in illusory trading profits on Treasury bond options, ultimately losing his firm $13.9 million and causing it to go under, U.S. authorities claimed in criminal and civil suits on Thursday.

  • September 29, 2016

    Lehman Brothers' Next Creditor Payout Set For $3.8B

    The Lehman Brothers’ bankruptcy estate said Thursday that it is preparing to distribute an additional $3.8 billion to unsecured creditors early next month, pushing total payouts to creditors to approximately $113.6 billion since the failed investment bank filed for Chapter 11 in 2008.

  • September 29, 2016

    Fox & Hound Parent's $28.6M Sale To Senior Creditor OK'd

    The senior creditor of Last Call Guarantor LLC, which owns sports bar franchises Fox & Hound and Chammps, will buy the company’s assets for $28.6 million in consideration after a Delaware bankruptcy judge agreed to approve the Chapter 11 sale Thursday to Fun Eats and Drinks LLC.

  • September 29, 2016

    Investors Split On SunEdison Venue At JPML

    SunEdison Inc. investors sparred Thursday before the U.S. Judicial Panel on Multidistrict Litigation over whether various lawsuits alleging the investors were misled about the bankrupt renewable energy company’s liquidity should be consolidated in New York, with some arguing it would unnecessarily disrupt cases on appeal.

  • September 29, 2016

    OCC Releases Final Big Bank Recovery Plan Guidelines

    Starting in the new year, certain banks with $50 billion or more in average total consolidated assets will have between six and 18 months to set up plans to recover from cyberattacks and other crises, according to final guidelines the Office of the Comptroller of the Currency released Thursday.

  • September 29, 2016

    EFH Set To End $122M Spat With Texas Wind Farm Operator

    Energy Future Holdings Corp. subsidiary Luminant has agreed to settle a $122 million dispute over a contractual obligation to purchase wind-generated electricity from the operator of a wind farm in West Texas, according to papers filed in Delaware bankruptcy court on Wednesday.

  • September 29, 2016

    Creditors Say Phoenix Brands Ch. 11 Plan Taking Too Long

    The unsecured creditors committee in the Phoenix Brands LLC bankruptcy case on Thursday took issue with the laundry detergent maker’s request to keep exclusive control of its case through mid-January, arguing that the debtor is taking too much time to wrap up what should be a simple case.

  • September 28, 2016

    Gawker Creditors Seek Info On Co. Finances, Denton Loan

    The unsecured creditors committee of Gawker Media on Tuesday asked a New York bankruptcy judge for the right to examine Gawker’s books, including an alleged $200,000 loan to founder Nick Denton.

  • September 28, 2016

    Midstates Petroleum Gets Nod On Ch. 11 Plan

    A Texas judge on Wednesday approved Midstates Petroleum’s plan for restructuring billions of dollars in debt, a decision that will clear the oil and gas company’s exit from Chapter 11 after seeking bankruptcy protection earlier this year.

  • September 28, 2016

    EPA Settles Cleanup Issues In Vertellus Ch. 11 Sale Plan

    Bankrupt chemical maker Vertellus Specialties Inc. sought expedited court approval late Tuesday for a U.S. Environmental Protection Agency cleanup funding agreement needed to round out a $450 million all-asset Chapter 11 sale and company liquidation.

  • September 28, 2016

    Bennu Titan Granted Delay Bid In Forced Ch. 11 Case

    A Delaware bankruptcy judge on Wednesday granted a bid by offshore drilling firm Bennu Titan LLC to delay a hearing on the involuntary appointment of a Chapter 11 trustee, despite objections from a lender seeking $180 million.

  • September 28, 2016

    Cosi The Latest Restaurant Chain To Seek Ch. 11

    Cosi, the restaurant chain known for flatbread and square bagels, filed for Chapter 11 protection Wednesday in Massachusetts with a plan to sell itself to its lenders after a drop in its sales.

  • September 28, 2016

    Golfsmith's Bankruptcy Plan Raises Privacy Concerns

    Bankrupt golf retailer Golfsmith International Inc. likely needs a privacy ombudsman because its asset sales could involve the handoff of customer information that is protected by privacy policies, the U.S. trustee said Wednesday.

  • September 28, 2016

    American Apparel Reportedly Promotes GC To CEO Role

    American Apparel Inc. is reportedly replacing Paula Schneider, brought on in January 2015 to turn the company around after a bankruptcy and the ousting of the company’s founder, with General Counsel Chelsea Grayson, an ex-Loeb & Loeb LLP partner whose expertise lies in mergers and acquisitions.

  • September 28, 2016

    Abengoa Creditors Look To Probe Pre-Bankruptcy Deals

    U.S. creditors of Spanish renewable energy developer Abengoa SA on Tuesday sought permission from a Delaware bankruptcy judge to investigate the company's finances, a day after Abengoa submitted an overview of a complicated global plan to restructure billions of dollars in debt.

Expert Analysis

  • Oral Advocacy And 'Vocal Fry'

    Higdon (1).jpeg

    In a sneak preview of the fall edition of Legal Communication & Rhetoric, Professor Michael Higdon of the University of Tennessee College of Law explores the negative reactions to "vocal fry," the accusations of sexism those reactions have engendered, and what all this means for female attorneys.

  • The Courtroom Where It Happened: Hamilton As A Lawyer

    Randy Maniloff

    Often lost in discussions about Alexander Hamilton is that he was an extremely important New York lawyer. He had an extensive law practice until his death in 1804 and he wrote what is considered to be the first treatise in the field of private law. Ultimately, Hamilton certainly did get "a lot farther by working a lot harder, by being a lot smarter, by being a self-starter," says Randy Maniloff of White and Williams LLP.

  • A Solution For Competing Foreign Insolvency Proceedings

    Laura Femino

    Uncertainty over a debtor’s home jurisdiction for purposes of insolvency proceedings — termed its “center of main interests,” or COMI — has allowed minority creditors to commence competing insolvency proceedings in foreign courts that jeopardize otherwise centralized restructurings. COMI clauses in governing indentures could create significant advantages for all stakeholders, say Laura Femino and Richard Kebrdle of White & Case LLP.

  • Why Have Lawyers Forgotten About The Middle Class?

    Chas.jpg

    Sorry, fellow lawyers, judges and legislators, but the jig is up. It’s time to show the public the cards up our sleeves and give them a chance to weigh in on the fairness of a system that touches so many aspects of their everyday lives, says Chas Rampenthal, general counsel of LegalZoom.

  • Tax Sales And Fraudulent Transfers: 2 Approaches

    Michael T. Benz

    With its recent ruling in Tracht Gut, the Ninth Circuit became the third federal appeals court to hold that real estate tax sales are for reasonably equivalent value and cannot be set aside as fraudulent transfers. This approach, however, is at odds with the Seventh Circuit’s approach in Smith, and raises questions about the scope of the U.S. Supreme Court’s opinion in BFP v. Resolution Trust, say Michael Benz and James Sullivan of... (continued)

  • Protection For Bondholders During Collateral Release

    Gregory C. Scott

    There might not be any cases decided under Section 314(d)(1) of the Trust Indenture Act, and it is likely that its provisions are rarely outcome-determinative. Nonetheless, Section 314(d)(1) could provide protection to bondholders against an abusive collateral release, says Gregory Scott of Kramer Levin Naftalis & Frankel LLP.

  • Overhauling Law Firm Records Departments For A New Reality

    Raymond Fashola

    As automation increases, so do business challenges that impact overall law firm operations. Records departments are facing roadblocks associated with antiquated processes, ever-changing regulatory requirements, and emerging technologies. As a result, firms are reassessing the needs of their records department staffing models, says Raymond Fashola of HBR Consulting.

  • Debt Recharacterization Lessons From 4th Circ.

    Salzberg_Mark_SquirePatton.jpg

    In a recent opinion in PEM Entities v. Province Grand Old Liberty, the Fourth Circuit provided guidance on when recharacterizing debt as equity is appropriate. The court’s decision also serves as a warning that debt purchasers may not be able to hide behind the original debt transaction in a recharacterization fight, says Mark Salzberg of Squire Patton Boggs LLP.

  • Transwest Threatens Senior Mortgage Lender Protections

    Geoffrey Raicht

    The recent Arizona district court decision in the case of Transwest Resort Properties, which has been appealed to the Ninth Circuit, may dramatically undermine the senior loan structure. The issue is of high importance to any company looking to reorganize complex corporate structures, but it is especially important when structuring real estate investments that rely upon a borrower’s corporate separateness from its affiliates and su... (continued)

  • 3 Steps To Successful Judgment Enforcement

    Craig Weiner

    Judgment enforcement is typically governed by the law of the state where collection is sought, which frequently means collection efforts are controlled by an arcane body of law replete with debtor-friendly roadblocks. Fortunately, there are a number of actions a judgment creditor can take to secure satisfaction of a claim, say Craig Weiner and Michael Kolcun of Robins Kaplan LLP.