Bankruptcy

  • October 22, 2014

    Union Blasts Trump Resorts' Bid To Stifle Communications

    An union representing employees at New Jersey's Trump Taj Mahal urged a Delaware bankruptcy judge Wednesday to reject a motion aimed at controlling its communications with casino customers, saying the relief sought by Trump Entertainment Resorts Inc. violates the Constitution and federal labor law.

  • October 22, 2014

    Variant Hearing Delayed After Ch. 11 Deal Draws Fire

    Bankrupt real estate company Variant Holding Co. LLC and creditor Beach Point Capital Management LP had their hopes dashed Wednesday for fast-track approval of a settlement that promised to streamline the case after an interested party's objection prompted a Delaware bankruptcy judge to postpone consideration of the deal.

  • October 22, 2014

    'Real Housewives' Star Can't Serve Term In Halfway House

    A New Jersey federal judge on Wednesday declined to partially convert a 15-month prison sentence for Teresa Giudice, the “Real Housewives of New Jersey” star convicted on fraud and tax evasion charges, saying the court didn't intend for Giudice to serve time in a halfway house.

  • October 22, 2014

    Boart To Recapitalize Under Deal With Centerbridge

    Distressed Australian oil drilling services provider Boart Longyear Ltd. on Wednesday announced a restructuring led by its largest shareholder, Centerbridge Partners LP, that will deleverage its balance sheet by $120 million and loosen the terms of its short-term financing.

  • October 22, 2014

    3rd Circ. Affirms Dismissal Of Virgin Islands Telecom Case

    The Third Circuit on Tuesday upheld a lower court's decision to transfer a complicated settlement dispute involving Norton Rose Fulbright, investment firm Greenlight Capital Inc., a group of insolvent Virgin Islands telecommunications firms and others to bankruptcy court, which then recommended that the case be thrown out.

  • October 22, 2014

    Bankrupt Seegrid Gets Nod For Dec. Hearing On Ch. 11 Plan

    Robotics developer Seegrid Corp. on Wednesday won the blessing of a Delaware bankruptcy judge to present its prepackaged Chapter 11 plan for confirmation in December, despite opposition from its former CEO who sought additional time to fight the plan.

  • October 22, 2014

    UniTek To Swap Debt For Equity, Go Private In Ch. 11

    Troubled telecommunications installation provider UniTek Global Services Inc.’s private equity stakeholders have reached a deal to take the company private and restructure its debts through a forthcoming prepackaged bankruptcy plan.

  • October 22, 2014

    Sifco Noteholders Fail To Stymie Ch. 15 Recognition

    Brazilian auto parts manufacturer Sifco SA won recognition of its foreign bankruptcy proceeding under Chapter 15 on Wednesday, over the objection of a group of noteholders that contended the debtor couldn't be trusted to treat them fairly.

  • October 22, 2014

    2nd Circ. Tosses Argentina's Appeal Of $539M Payment Block

    The Second Circuit on Wednesday dismissed Argentina's appeal of a New York federal judge's order blocking a $539 million payment to bondholders via Bank of New York Mellon, finding that it doesn't have jurisidiction because the order appealed from was a clarification rather than a modification of prior rulings.

  • October 22, 2014

    AWI Trade Creditors Say Proposed $170M Sale Is Too Cheap

    A group of trade creditors of bankrupt Associated Wholesalers Inc. blasted the cooperative food distributor's proposed sale Wednesday, two days before the auction is scheduled to begin, arguing the court should reject it unless bidding brings in at least $25 million more for the estate.

  • October 22, 2014

    National Union Defeats Suit Over $40M Real Estate Deal

    A Florida federal judge found for National Union Fire Insurance Co. of Pittsburgh, Pa., on Tuesday in a suit by two insurers seeking coverage for a $40 million settlement in an underlying real estate dispute, ruling a directors and officers liability policy excludes negligence claims.

  • October 22, 2014

    Ex-WR Grace Workers Seek OK To Sue Insurer Over Asbestos

    Two former W.R. Grace & Co. employees asked a Delaware bankruptcy judge on Tuesday for reassurance that their planned lawsuit against Maryland Casualty Co. won’t run afoul of the company’s confirmed bankruptcy plan, saying the injunction barring asbestos-related suits against Grace and others doesn’t apply to their claims against the insurer.

  • October 22, 2014

    EFH Says $4B Bondholder Appeal Would Torpedo DIP

    Energy Future Holdings Corp. and Pacific Investment Management Co. urged a Delaware judge Tuesday not to upset a $4 billion repayment deal in EFH's bankruptcy, saying that $2 billion in financing Pimco provided was contingent on the settlement and the "ship has sailed" on any opportunity for appeal by senior bondholders.

  • October 22, 2014

    Google Says Nortel Shouldn't Block Docs In Rockstar IP Row

    Google Inc. on Tuesday became the latest company to urge a Delaware bankruptcy judge to reject a bid by defunct Nortel Networks Inc. to grant it protection against subpoenas it has received in connection with patent infringement litigation involving Rockstar Consortium LP, the buyer of Nortel's patent portfolio.

  • October 22, 2014

    Wyly Says Ch. 11 Should Block SEC Asset Freeze

    Lawyers for billionaire investor Sam Wyly on Wednesday told a Texas bankruptcy judge his voluntary Chapter 11 petition protects his estate from the U.S. Securities and Exchange Commission’s attempt to secure an asset freeze in New York federal court.

  • October 21, 2014

    Detroit Ch. 9 Judge Wants Specifics On Settlements, Exit Plan

    The judge presiding over Detroit’s bankruptcy case indicated Tuesday that he wants the city to delve into specifics of its settlements with creditors and its exit financing plan during closing arguments next week in the confirmation trial for its plan to erase more than $7 billion in debt and reinvest in essential services.

  • October 21, 2014

    Energy Future Unit Board Member Backs Auction Plans

    Energy Future Holdings Corp. and various creditors continued their battle Tuesday over the bankrupt power giant's proposal to auction its stake in Oncor Electric Delivery Co. LLC, with a board member of an EFH subsidiary touting the bidding process as the best way to advance the Chapter 11 case.

  • October 21, 2014

    Judge Has 'Significant Doubts' About Global NAPs Ch. 11

    A Delaware bankruptcy judge said Tuesday that he has "significant doubts" about whether defunct telecommunications firm Global NAPs Inc.'s Chapter 11 petition is proper or was filed in good faith, but agreed to postpone a trial to dismiss the case to give the debtor more time to prepare.

  • October 21, 2014

    Ex-AgFeed Execs Say Ch. 11 Plan Shorts Them On Legal Costs

    Former top executives of AgFeed Industries Inc. on Monday objected to its proposed Chapter 11 liquidation plan, saying it doesn’t provide enough funds for anticipated litigation costs in the wake of an $18 million U.S. Securities and Exchange Commission settlement over alleged accounting fraud at the industrial hog farmer.

  • October 21, 2014

    Robotics Co. Plans Ch. 11 Debt-Equity Swap With Giant Eagle

    Robotics developer Seegrid Corp. filed for Chapter 11 protection Tuesday in Delaware, listing nearly $50 million in debt after hitting what its president said was a cash crisis and coming armed with a prepackaged reorganization plan that includes a debt-for-equity swap with a major creditor, supermarket chain Giant Eagle Inc.

Expert Analysis

  • New Jurisdictional Issues When Moving To Quash A Subpoena

    Steven Luxton

    The Nevada federal court's recent ruling in Agincourt Gaming LLC v. Zynga Inc. is an important reminder that a nonparty wanting to challenge a civil subpoena should consider carefully the appropriate jurisdiction in which to file a motion to quash under recently enacted Rule 45, say Steven Luxton and Brad Nes of Morgan Lewis & Bockius LLP.

  • 1st Circ. Injects Uncertainty Into Stay Relief Denials

    Douglas R. Gooding

    Both the majority and dissent in a First Circuit ruling in Pinpoint IT Services LLC v. Rivera could be accused of drawing an arbitrary line in the sand — their positions bring uncertainty to bankruptcy appeals of stay relief denials even prior to any consideration of the merits of such appeals, say Douglas Gooding and Meg McKenzie Feist of Choate Hall & Stewart LLP.

  • The Cayman Way Of Identifying, Enforcing Against Assets

    Christopher Russell

    Identifying Cayman Islands-held assets of a defendant or proposed defendant is something of a mixed bag — straightforward in some respects, but difficult, bordering on the impossible, in other respects, say Christopher Russell and Jane Hale-Smith of Appleby Global Group Services Ltd.

  • Accessing The D&O Liability Coverage Of A Bankrupt Corp.

    Mary E. McCutcheon

    A traditional directors and officers insurance policy risks dilution where the company also faces a covered claim. And when the company has filed for bankruptcy, payment of the proceeds for claims against the directors and officers may be delayed, and even impaired, says Mary McCutcheon of Farella Braun & Martel LLP.

  • 2nd Circ. Fails To See The Comity In Chapter 15

    Daniel M. Glosband

    The Second Circuit in the case of Fairfield Sentry Ltd. missed the point that applying Section 363 to the sale of a Securities Investor Protection Act claim — in the context of a Chapter 15 ancillary proceeding — to the same extent that it would apply to property of an estate does not eliminate the principles of comity that infuse Chapter 15, say Daniel Glosband and Kizzy Jarashow of Goodwin Procter LLP.

  • What Litigators Can Learn From Novelists

    Michael H. Rubin

    Many legal briefs are written in impenetrable jargon and begin with an introduction telling the court what it already knows, using words that stem from the 18th century, such as “hereinafter.” Instead, we should approach briefs the way novelists approach their writing, says Michael Rubin of McGlinchey Stafford PLLC.

  • When Your General Contractor Files Bankruptcy

    Vicki R. Harding

    All is not lost when a general contractor files bankruptcy — subcontractors may be able to perfect their construction liens post-petition, as in the case of Branch Banking & Trust Co. v. Construction Supervision Services Inc., says Vicki Harding of Pepper Hamilton LLP.

  • 2nd Circ. Expands US Court Role In Ch. 15 Cases

    George W. Shuster Jr.

    In a recent Madoff-related decision, the Second Circuit took a relatively aggressive stance on U.S. court review of asset sales in Chapter 15 cases, and the ruling may have effects in bankruptcy cases outside Chapter 15, say George Shuster and Benjamin Loveland of WilmerHale.

  • Del. Clarifies Approach To Derivative Suits In Insolvency

    Brad Eric Scheler

    Before the Delaware Supreme Court’s landmark Gheewalla ruling, application of the business judgment rule to actions by directors of insolvent companies had been controversial, given the concern that directors might be inclined to engage in high-risk strategies while creditors bear the risk of failure. A recent Chancery Court decision highlights this concern, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Information Governance: A Missed Opportunity For Lawyers

    Ann Snyder

    Today, information intersects every practice area, making all lawyers effectively information governance practitioners in one way or another. The issue is whether you will consciously embrace this emerging discipline — and capitalize on it to the benefit of your clients and your practice, says Ann Snyder of the Information Governance Initiative.