Bankruptcy

  • July 22, 2014

    Puerto Rico's Restructuring Law Faces Another Challenge

    Investment firm BlueMountain Capital Management LLC sued the governor of Puerto Rico and others in federal court on Tuesday, alleging that a law the commonwealth's government enacted last month allowing certain public agencies to restructure their debt violates both the U.S. and Puerto Rico Constitutions.

  • July 22, 2014

    Fla. Sues Digital Domain Over $20M In Incentive Funding

    Florida made good on its threats of litigation against Digital Domain when it filed suit on Tuesday against the formerly bankrupt production company to recoup all monies owed to the state, including $20 million in incentive funding.

  • July 22, 2014

    Judge Pleads With Argentina, Funds To Settle Bond Dispute

    The New York federal judge overseeing Argentina’s fight with investment firms holding around $1.5 billion in government bonds on Tuesday pled with both sides to reach a settlement of the dispute ahead of an end-of-the-month deadline that will cause Argentina to default on its debt.

  • July 22, 2014

    Lehman's Swiss Arm Demands $71M Under Citi Trading Pacts

    The liquidator for Lehman Brothers Holdings Inc.'s Swiss subsidiary sued three Citigroup Inc. units on Monday to invalidate set-off provisions in derivatives trading contracts that they are allegedly using to withhold $71 million from the estate, saying that enforcing the terms would violate U.S. bankruptcy law.

  • July 22, 2014

    Magazine Wholesaler's $24M Ch. 11 Sale Plan OK'd

    Source Home Entertainment LLC is slated for an auction in September, after a Delaware bankruptcy judge on Monday approved an auction process for Source Home's manufacturing arm anchored by a $24 million credit bid from senior secured term lenders that includes funds managed by the company's top equity holder.

  • July 22, 2014

    Pa. High Court Clears Bankrupt Insurer In $12M Warranty Row

    Pennsylvania's high court on Monday freed defunct Reliance Insurance Co. from covering nearly $12 million in product warranty reimbursement claims from Warrantech Consumer Products Services Inc., interpreting for the first time a section of the state insurance insolvency statute.

  • July 22, 2014

    Bankrupt Edwin Watts Golf Lands Ch. 11 Plan Approval

    A Delaware bankruptcy judge on Tuesday signed off on Edwin Watts Golf Shops LLC’s Chapter 11 liquidation plan, which will distribute the remaining proceeds from the equipment retailer’s $40 million asset sale among estate creditors.

  • July 22, 2014

    DLA Piper Hands Back Fees To Settle Casino Trustee Row

    DLA Piper and the trustee appointed to oversee the bankruptcy of Philadelphia Entertainment & Development Partners LP have reached a settlement to put to rest the trustee's contentions that the firm made material misrepresentations and misleading statements in its application.

  • July 22, 2014

    $3.7M Suit Claims Gen. Dynamics Unit Bankrupted Contractor

    Metal fabrication shop Elite Precision Fabricators Inc.has sued defense contractor General Dynamics Land Systems Inc., alleging fraud and breach of contract in connection with a work stoppage agreement that Elite says cost the company $3.7 million and forced it into bankruptcy.

  • July 22, 2014

    2nd Circ. Revives $510M Travelers Asbestos Settlement Bill

    The Second Circuit on Tuesday enforced bankruptcy court agreements binding Travelers Property Casualty Corp. to pay more than $500 million to thousands of asbestos injury plaintiffs, ruling that the pacts weren’t invalidated when the insurer subsequently lost certain liability protection.

  • July 22, 2014

    Bracewell & Giuliani Adds Energy, Finance Pro In Houston

    Bracewell & Giuliani LLP said Monday it has strengthened its Houston office with the addition of a former Cadwalader Wickersham & Taft LLP attorney who focuses his practice on corporate, finance, bankruptcy and workout matters, predominantly in the mining and energy industries.

  • July 22, 2014

    Retirees Vote In Support Of Detroit's Bankruptcy Exit Plan

    The creditor vote on Detroit’s proposal to restructure $18 billion in debt revealed broad worker and retiree support Monday for the city's momentous bankruptcy exit plan ahead of a highly anticipated confirmation trial.

  • July 21, 2014

    Argentina Appeals Foreign Bond Payment Ban Order

    The government of Argentina called on the Second Circuit to lift a New York federal judge’s ban on the nation’s payments to so-called exchange bondholders, making good on an argument it made in a legal notice earlier this month, in one of several filings Monday.

  • July 21, 2014

    IBRC Gets OK For Tampa Mall Sale After Pact Ends Opposition

    Chapter 15 debtor Irish Bank Resolution Corp. got the green light to sell its interests in a Florida shopping mall for $9 million Monday as a Delaware bankruptcy judge blessed the results of a weekend settlement that sweetened the deal and defused opposition from a spurned suitor.

  • July 21, 2014

    Texas Firm Hits Client With Fee Suit Over ‘Nightmare’ Case

    Acosta & Associates PC on Friday slapped a former client with a suit in Texas state court seeking at least $500,000 in punitive damages, alleging the client refused to pay legal fees after the firm helped him escape from what a federal judge called a nightmarish bankruptcy case stemming from a contract dispute between two tech companies.

  • July 21, 2014

    Picard Can't Appeal 'Good Faith' Madoff Clawback Ruling

    U.S. District Judge Jed Rakoff refused on Monday to let the liquidating trustee for Bernard L. Madoff’s defunct firm seek appellate review of a decision weakening clawback suits against investors affected by the Ponzi scheme, saying the cases should not “languish” while the Second Circuit tackles a narrow question of law.

  • July 21, 2014

    Bankrupt Tactical Lands $6.9M Bidder For Combat Boot Line

    Bankrupt military outfitter Tactical Intermediate Holdings Inc. on Monday won approval in Delaware federal court to conduct a speedy sale of its combat boot division after lining up a $6.9 million stalking horse bidder to purchase the unit as a going concern.

  • July 21, 2014

    'Girls Gone Wild' Founder Faces Contempt For Flouting Orders

    “Girls Gone Wild” founder Joe Francis was found in contempt Friday for entering the offices of his bankrupt company, harassing employees and not returning two company cars in violation of a temporary restraining order and preliminary injunction, a California bankruptcy judge ruled.

  • July 21, 2014

    Lehman Estate Settles Lingering Credit Swap Dispute

    Lehman Brothers Holdings Ltd. on Friday unveiled a settlement ending a dispute over the $144 million in collateral securing notes covered by a credit default swap arrangement that the swap counterparty terminated in the wake of Lehman's 2008 bankruptcy.

  • July 21, 2014

    NH Suit To Block US From $194M Bankruptcy Deal Advances

    A New Hampshire federal judge on Monday rejected the U.S. government’s attempt to escape the state insurance commissioner’s lawsuit seeking to block the U.S. from taking a cut of $194 million set aside for claims arising from Home Insurance Co.’s bankruptcy.

Expert Analysis

  • When You Are Responsible For Your Book Of Business

    Jennifer Topper

    Finding prospective clients and retaining them has little to do with your legal training and expertise, and yet you have no practice without successful client acquisition and retention. There is no reason you cannot apply your basic legal training and critical thought to successful sales efforts hinging upon your practice strength and experience, says independent law firm consultant Jennifer Topper.

  • 4th Circ. Provides Guidance On Nondebtor Releases

    Jason W. Harbour

    The Fourt Circuit's second opinion in the case of National Heritage Foundation shows that it is imperative for the proponent of a nonconsensual nondebtor release to provide appropriate evidence to justify approving such a release, although the court did not draw a bright line as to how many of the six Dow Corning factors must be satisfied, say Jason Harbour and Tara Elgie of Hunton & Williams LLP.

  • An Inventive Way To Remove Pure State Court Claims

    Michael E. Blumenfeld

    Nondiverse state court defendants facing purely state law claims that seek to secure federal jurisdiction should determine whether a good faith basis exists to pursue a third-party action against a federal actor in order to trigger the representative U.S. Attorney’s certification and remove such claims under the Westfall Act, say Michael Blumenfeld and Jonathan Singer of Miles & Stockbridge PC.

  • Separate Classification Gone Too Far

    Scott M. Grossman

    A district court decision in CWCapital Asset Management v. Burcam Capital II may bolster the arguments of secured creditors in opposing cramdown efforts by debtors who may have been emboldened by other recent decisions supporting creative classification schemes, say Scott Grossman and Ari Newman of Greenberg Traurig LLP.

  • Powerful Tools For Discovery And Litigation Strategy

    Nathalie Hofman

    Analytics offer opportunities for refining both discovery strategy and overall litigation strategy by providing information to support better informed decisions. As an added bonus, they can result in significant cost savings, say Nathalie Hofman and Carolyn Southerland of Huron Consulting Group Inc.

  • Madoff Foreign Entanglement Ruling Unsurprising

    Michael L. Cook

    U.S. District Judge Jed Rakoff’s recent decision to block the Madoff Securities trustee's ability to recover customer funds transferred abroad by foreign feeder funds is hardly novel in view of U.S. Supreme Court and Second Circuit precedent, says Michael Cook of Schulte Roth & Zabel LLP.

  • PRISM Scatters Attorney-Client Privilege

    Any attorney sending or storing confidential client information or privileged communications via the cloud may be knowingly exposing those communications to scrutiny by the U.S. government via programs such as the National Security Agency’s PRISM — and arguably, even waiving any claim of privilege as a result, say attorney Thomas Mullaney and Vaultive CEO Elad Yoran.

  • OPINION: Let's Financially Reward Law Firm Diversity

    Patricia K. Gillette

    It only took the threat of a 10 cent cost increase to make people bring their own bags to Bay Area grocery stores. What if we gave partners an extra $10,000 for increasing diversity in their firms? asks Orrick Herrington & Sutcliffe LLP partner Patricia Gillette.

  • Crucial Predictive Coding Case Law: Progressive V. Delaney

    Emily Cobb

    Any practitioner considering predictive coding should fully consider Magistrate Judge Peggy Leen’s reasoning in Progressive Casualty Insurance v. Delaney and the potential pitfalls associated with failure to consistently cooperate, say Emily Cobb and Annamaria Enenajor of Ropes & Gray LLP.

  • Takeaways From 6th Circ.'s AmFin Tax Refund Ruling

    Steven Wilamowsky

    The concurring opinion in the Sixth Circuit’s AmFin Financial Corp. ruling may have been correct in its conclusion that the majority was too quick to dismiss as disfavored “federal common law” the Ninth Circuit rule that would give AmFin’s loss-generating subsidiary the benefit of the tax refund it created, say Steven Wilamowsky and Amelia Joiner of Bingham McCutchen LLP.