Education Management Corp. said Wednesday it plans to hand itself over to creditors in a restructuring deal that rids the for-profit college operator of $1.1 billion in debt and underscores the financial and regulatory pressures squeezing its industry.
A bankruptcy trustee's effort to “monetize” a rent-stabilized lease by selling it to a Manhattan landlord in order to pay the tenant's consumer debts has mobilized state lawmakers, who say new laws may be needed to keep renters in their homes and protect their access to bankruptcy court if the plan survives on appeal.
A New York federal judge on Wednesday paved the way for the MF Global Holdings Ltd. bankruptcy administrator to take a $1 billion malpractice suit against longtime auditor PricewaterhouseCoopers LLP to trial, ruling it wasn’t barred by MF Global's liquidation plan.
Argentina's finance minister urged lawmakers on Wednesday to enact legislation allowing the country to pay its creditors, making his case a day after the country vowed to strip Bank of New York Mellon Corp. of its operating privileges there due to interference with an attempted $539 million payment to favored creditors.
The Ninth Circuit on Wednesday revived mining company Asarco LLC’s dispute with Union Pacific Railroad Co. over its share of the $482 million cost of cleaning up an Idaho Superfund site, ruling in an issue of first impression that an amended complaint is still timely even if it includes new allegations.
A Delaware bankruptcy judge on Wednesday blessed Event Rentals Inc.'s Chapter 11 plan, which sets up a liquidating trust to dole out proceeds remaining from the party planner's $125 million asset sale.
A New Jersey federal judge on Friday declined to discharge about $938,000 of debt in a disbarred New Jersey attorney's bankruptcy, ruling he misappropriated the money from a client settlement in a business partnership dispute and withheld information about its whereabouts, which included an improper payment to his law partner.
The trustee for Dewey & LeBoeuf LLP on Tueday sued two companies over $84,000 worth of legal fees that they allegedly still owe the now-defunct firm for services rendered.
The Second Circuit on Wednesday affirmed a New York man's conviction for scamming $485,000 from investors who were told they were investing in the assets of a bankrupt fuel cell company, saying alleged government misconduct did not “permeate” the trial and was mostly harmless.
Bottle maker Constar International Holdings LLC and its unsecured creditors want to tap a firm known for bankruptcy estate recovery to go after yet-unnamed defendants, potentially including its former counsel Dechert LLP, over allegations contained in a sealed report, according to court papers filed Monday.
Defunct drink maker Le-Nature’s Inc. has agreed to settle a dispute with Pittsburgh-based Pascarella & Wiker LLP over claims that the accountants' negligence contributed to the company's bankruptcy, likely ending litigation that has already led to a $24 million settlement with K&L Gates LLP.
Defunct financial company FBOP Corp. and two banks it owed money filed motions in Illinois federal court on Tuesday to prevent the Federal Deposit Insurance Corporation from claiming that the bankrupt company's transfers of liens to the banks were fraudulent.
The Chapter 7 Trustee for defunct ATP Oil & Gas Corp. filed an adversary suit in Texas federal court on Tuesday against Water Quality Insurance Syndicate, seeking defense and indemnity for a suit launched by the United States against ATP after the 2010 Deepwater Horizon oil spill.
A New York bankruptcy judge on Tuesday approved nearly all of private equity-owned Momentive Performance Materials Inc.’s plan to exit bankruptcy $3 billion lighter in debt, ruling against three noteholder groups and erasing close to $600 million in disputed claims.
The bankrupt city of Detroit, Syncora Guarantee Inc., Berkshire Hathaway Reinsurance Group and others have been ordered to appear for continued mediation on Wednesday and possibly Thursday over $1.4 billion in "certificates of participation," according to an order filed Tuesday in Michigan bankruptcy court.
Cole Schotz Meisel Forman & Leonard PA said Tuesday that it has opened its second Texas office in Dallas to complement the firm's bankruptcy practice in its Fort Worth office and expand its offerings to out-of-state clients with business interests in Texas.
Lightsquared Inc. has asked a New York bankruptcy court to approve $120.6 million in post-petition financing during its drawn-out bankruptcy battle, according to documents filed Monday.
Card transaction processor Phoenix Payment Systems Inc. got the nod Tuesday to proceed toward a mid-September auction as a Delaware bankruptcy judge rejected a call by its former CEO for an extended process that would give prospective suitors more time to get involved.
The Tenth Circuit on Tuesday affirmed that the former CEO of cable television company FrontierVision Partners LP cannot discharge a $14.3 million tax liability through his Chapter 11 bankruptcy because he filed a fraudulent tax return and tried to evade his taxes.
A New Jersey bankruptcy judge on Tuesday signed off on the $6.5 million acquisition of bankrupt Crumbs Bake Shop Inc. by a joint venture between television investment guru Marcus Lemonis and the owner of ice cream chain Dippin' Dots, days after Crumbs canceled a planned auction for lack of competing suitors.
For jurisdictions where the tax authority first “forecloses” on property in satisfaction of outstanding property taxes and then resells the property, there is a clear risk that the authority could be forced to pay “market value” less the amount of the delinquent property taxes, particularly if the property owner subsequently files for bankruptcy, says Vicki Harding of Pepper Hamilton LLP.
Nearly 70 years before the U.S. Supreme Court decided Stern v. Marshall, oil tycoon J. Howard Marshall undertook a data-driven analysis of the then-existing bankruptcy regime that was well-ahead of its time, so as to initiate some proposals for reform and make the bankruptcy process more fair and efficient, say Doron Kenter and Kyle Ortiz of Weil Gotshal & Manges LLP.
Much has been written recently about the unfinished-business doctrine, but what does it all mean for firms that are not planning on going out of business? asks Mark Zebrowski of Morrison & Foerster LLP.
In U.S. Bank National Association v. Verizon Communications, the Fifth Circuit found competing valuations helpful in dismissing a litigation trustee’s $2.5 billion fraudulent transfer suit against a Chapter 11 debtor’s corporate parent. An adversarial system, therefore, not ideology, worked for the defendants, says Michael Cook of Schulte Roth & Zabel LLP.
"If you follow the philosophy of saving everything you're just multiplying exponentially the costs and risks of litigation and investigations," says Robert Owen, partner in charge of Sutherland Asbill & Brennan LLP's New York office and president of the Electronic Discovery Institute.
The Delaware bankruptcy court’s holding in the case of Ormet Corp. that the express provisions of Section 363(f) are not trumped by the policy considerations embodied in the Employee Retirement Income Security Act and the Multiemployer Pension Plan Amendments Act should give comfort to debtors and purchasers of assets in a free-and-clear sale, says Christopher Hopkins of Weil Gotshal & Manges LLP.
The Second Circuit ruling that Bernard L. Madoff bankruptcy trustee Irving Picard may not block two large settlements involving Madoff feeder funds is welcome news for institutions that invested in “intermediate” funds that are still solvent. Commentators, however, fully expect that Picard will continue to appeal adverse decisions, including this most recent ruling, say Jonathan Sablone and Danielle McLaughlin of Nixon Peabody LLP.
The Chapter 11 case of Genco Shipping & Trading Ltd. presented the Southern District of New York with a complex question of value. Unfortunately for the official committee of equity holders, the only valuation that put equity in the money was a rejected discounted cash flow, say Daniel Glosband and Thomas Good of Goodwin Procter LLP.
With all attention focused on Executive Benefits Insurance Agency v. Arkison, the U.S. Supreme Court's Daimler AG v. Bauman decision could represent the real sea change in jurisdiction over noncore actions, say attorneys with Latham & Watkins LLP.
To this day, I have yet to see a litigation hold letter that was written by someone who understands the realities of how a business is actually run. In-house counsel cannot issue decrees to business units that read like they are issued by the king to his subjects, says Francis Drelling, in-house counsel at Specialty Restaurants Corp.