Bankruptcy

  • July 29, 2016

    Gawker's Denton Maneuvers Again In Bid To Avoid Bankruptcy

    Gawker chief executive Nick Denton was forced Friday to file another emergency appeal to hold off Hulk Hogan’s $140 million sex-tape judgment and avoid personal bankruptcy after a Florida judge promptly refused his request for a stay as the company fights the verdict.

  • July 29, 2016

    2nd Circ. Rebuffs Funds' Claims JPMorgan Aided Refco Fraud

    The Second Circuit on Friday refused to revive a group of defunct hedge funds’ claims that JPMorgan Chase & Co aided collapsed brokerage Refco Inc.’s accounting fraud scheme, ruling the funds failed to allege JPMorgan knew that Refco was making unauthorized transfers.

  • July 29, 2016

    Texas Businessman Cops To Defrauding Law Firm Clients

    A San Antonio businessman who ran multiple personal injury law firms on Thursday pled guilty to fraud and tax evasion charges for defrauding clients out of settlements, evading $1.6 million in taxes and hiding almost $430,000 in assets from a bankruptcy trustee.

  • July 29, 2016

    Sports Authority Reaches Deal To Pay Rents, Avoid Ch. 7

    Sports Authority told the Delaware bankruptcy court Friday that it has resolved both its fight with landlords over post-petition rent, with a deal that would see term lenders cover the bulk of the cost, and unsecured creditors' bid to convert its Chapter 11 case to a Chapter 7 liquidation.

  • July 29, 2016

    Investment Managers Fight GM Trust Proposed Loan Deal

    Two investment management companies told a New York bankruptcy judge Friday that they’re concerned about a recent proposal from a trust handling creditor claims in the GM bankruptcy case, saying the trust’s attempt to get a loan will be more expensive than it appears on the surface.

  • July 29, 2016

    Bankrupt Quirky Ducks Most Of $1M IRS Payroll Tax Claim

    A New York bankruptcy judge allowed defunct invention incubator Quirky Inc. to sidestep an Internal Revenue Service claim for more than $900,000 in unpaid payroll taxes and other charges Friday.

  • July 29, 2016

    Support Co. Says Troutman Stiffed It In Commerzbank Case

    Troutman Sanders LLP was slapped with a lawsuit Thursday in New York state court over $420,000 in litigation support bills that U.S. Legal Support Inc. says it racked up defending Commerzbank from a Texas suit brought by an energy company seeking to recover payments against equipment loans.

  • July 29, 2016

    SunEdison Plan Members Denied Bid To Revive ERISA Suit

    A Missouri federal judge on Friday shot down an attempt by former SunEdison employees to revive a proposed class action against company directors who the workers say violated the Employee Retirement Income Security Act by offering inflated company stock as a retirement plan investment option.

  • July 29, 2016

    2nd Circ. Affirms Nix Of Ex-DHB GC's Suit Over $1.9M Fees

    The Second Circuit on Friday tossed a suit brought by the former general counsel of defunct DHB Industries Inc. seeking to recover $1.9 million in fees, saying he lacked standing to dispute certain fee awards stemming from a class settlement resolving securities fraud allegations against DHB's founder.

  • July 29, 2016

    Atlas Resources Set For Speedy Trip Through Ch. 11

    Atlas Resource Partners LP is set for a speedy trip through Chapter 11 after a New York bankruptcy judge on Friday cleared the oil and gas company, armed with a prepacked plan to slash $900 million in debt, for a plan confirmation hearing next month.

  • July 29, 2016

    Halcon Gets Nod For High-Speed Trip Through Bankruptcy

    A Delaware bankruptcy judge gave oil and gas exploration firm Halcon Resources Corp. the green light Friday for a short dash through Chapter 11 that would see its prepackaged plan considered in early September and a $600 million post-petition financing facility to help fund the trip.

  • July 29, 2016

    NextEra To Buy Bankrupt EFH In $18.4B Deal

    Clean energy-focused NextEra Energy said Friday it will buy bankrupt Energy Future Holdings and its stake in Oncor in a deal worth $18.4 billion, allowing EFH to exit Chapter 11 after an earlier restructuring plan collapsed.

  • July 28, 2016

    Rothstein Feeder Fund Settles With Insurers For $2.2M

    A Florida bankruptcy judge on Thursday approved a $2.2 million deal between the trustee liquidating an investment fund that fed into jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme and two insurers over their attempts to dodge millions in commercial crime insurance coverage.

  • July 28, 2016

    Retailer Claire's Reportedly Seeks Debt Restructuring

    Jewelry and accessories retailer Claire’s Stores Inc. plans to begin negotiating with creditors over a plan to restructure its debt and will need strong back-to-school sales to prevent the business from filing for bankruptcy, according to published reports Thursday.

  • July 28, 2016

    Triangle, Contractor Rumble Over Pipeline Deal In Ch. 11

    A Triangle USA Petroleum Corp. creditor and pipeline contractor called Thursday for the rejection of Triangle’s Delaware Chapter 11 plan support agreement, saying it would stand in the way of better deals and guarantee costly litigation over pipeline service commitments.

  • July 28, 2016

    Business Bankruptcies Largely Flat In Past 12 Months

    The number of businesses filing for bankruptcy barely ticked upward in late 2015 and early 2016, and new Chapter 11 bankruptcy cases rose by around 19 percent in 2016, according to court statistics released on Wednesday.

  • July 28, 2016

    Hercules Equity Holders Object To Ch. 11 Plan Releases

    Hercules Offshore Inc. equity holders filed an objection Wednesday in Delaware bankruptcy court against the company’s prepackaged Chapter 11 plan, challenging liability releases for directors, officers and lenders and claiming the plan was not proposed in good faith.

  • July 28, 2016

    Apollo Calls Out Caesars Creditors For Wasting Time

    Apollo Global Management LLC on Thursday fired back at Caesars Entertainment Corp. creditors calling for sanctions against the private equity firm for missing deposition deadlines, telling an Illinois bankruptcy judge that the depositions will take place and that the motion for sanctions was a “colossal" waste of time.

  • July 28, 2016

    SynCardia Creditors Worried Over DIP, Bidding Orders

    Unsecured creditors in the Chapter 11 case of artificial heart maker SynCardia Inc. objected Wednesday in Delaware bankruptcy court to the company’s proposed stopgap financing facility and sale process, saying the compressed timeline puts a secured lender in the driver’s seat of the case.

  • July 28, 2016

    SunEdison Gets Nod On $7.6M Bonus Plan

    A New York judge said Thursday he would approve SunEdison’s request to award up to $7.6 million in bonuses to a group of employees the company says are critical to the renewable energy giant's business, but said SunEdison needed to provide more information on other potential recipients.

Expert Analysis

  • Summer Session At The 2nd Circ.

    WolfHaldenstein_Isquith_Fred.jpg

    No court is more respected by the bench and the bar than the Second Circuit for its opinions addressing financial industry and complex market questions. Fred Taylor Isquith of Wolf Haldenstein Adler Freeman & Herz LLP highlights a few decisions from the court's busy session this summer.

  • Prevent Litigation From Becoming A Threat To Data Security

    Dante Stella

    Recent headline-grabbing data security incidents have shed light both on direct and collateral impacts to companies and their employees. Attorneys should take steps to ensure that their role in the conduct of litigation does not in itself lead to similarly damaging disclosures of sensitive information, say Dante Stella and Sherrie Farrell of Dykema Gossett PLLC.

  • Cos. Face Greater Fraudulent Transfer Risks Post-Lyondell

    Mark Maloney

    A New York federal court's decision this week in the case of Lyondell Chemical Co. is a stark reminder of how principles of agency law can result in the imputation of a single officer’s or director’s fraudulent intent on an entire company for purposes of actual fraudulent transfer claims, say attorneys with King & Spalding LLP.

  • OPINION: Our Juries Are Being Circumvented

    Suja A. Thomas.jpg

    The Freddie Gray case and the U.S. Supreme Court ruling regarding former Virginia Governor Robert McDonnell demonstrate how the government replaces juries, eliminating an important community decision maker and a check on governmental power, says Professor Suja Thomas of the University of Illinois College of Law.

  • Legal Aid, Meet Legal Tech

    IMG_0023.JPG

    Because there will never be enough free lawyers to satisfy demand from low-income Americans, we need to leverage technology to allow the legal expertise of one lawyer to reach hundreds or thousands of clients at once, say Jonathan Petts and Rohan Pavuluri, co-founders of startup nonprofit Upsolve.

  • 2nd Circ. GM Ruling Shows Value Of Debtor’s Disclosures

    Darren Azman

    Bankruptcy Code Section 363 offers a powerful tool for a debtor in bankruptcy to sell its assets free and clear of liens and other interests. However, as the Second Circuit's recent decision in the Motors Liquidation Company case underscores, this power is not without limit, say Darren Azman and Megan Preusker at McDermott Will & Emery LLP.

  • Testing The UBE: Portable But Inaccurate Bar Exam Scores

    Suzanne Darrow-Kleinhaus

    While there is not much that is new about the uniform bar exam’s components, what is new is that where you take the bar exam may make the difference between passing and failing. Half of the score depends on the strength of the applicant pool in the jurisdiction where the candidate wrote the exam, which may lead to “UBE shopping,” says Suzanne Darrow-Kleinhaus, director of bar programs at Touro Law Center.

  • Testing The UBE: Missouri Benefits From Uniform Bar Exam

    Jim Nowogrocki

    We in Missouri do not take lightly to new trends or frothy ideas. Yet, the uniform bar exam has allowed us to meet the challenges of an increasingly mobile legal profession and the changing needs of clients, and to ensure that a newly admitted attorney has the knowledge, character and fitness to practice in the Show-Me State, says Jim Nowogrocki, president of the Board of Law Examiners in Missouri — the first state to adopt the UBE.

  • PROMESA Shields Puerto Rico Behind A New Automatic Stay

    Michael P. Cooley

    Tucked at the end of the Puerto Rico Oversight, Management, and Economic Stability Act is a stand-alone provision that promises an immediate impact not merely on bondholders and other creditors seeking to enforce payment and remedies, but on any person or entity seeking to enforce rights generally against the government of Puerto Rico or any “territorial instrumentality,” says Michael Cooley of Bryan Cave LLP.

  • Curing Substantive Ambiguities In Debt Documentation

    Abbe Dienstag

    Recent New York state court decisions in GSO Coastline v. Global A&T Electronics present a cornucopia of issues arising under standard indenture clauses. First, beware of seemingly technical amendments to indentures that have substantive consequences, says Abbe Dienstag of Kramer Levin Naftalis & Frankel LLP.