Bankruptcy

  • November 20, 2014

    Ex-Quiznos Brass Fight To Keep Indemnification Claims Alive

    Former executives of Quiznos, who want subsidiaries of the sandwich chain to indemnify them against fraud claims from ex-stakeholders stemming from the company's bankruptcy, fought to keep their Delaware Chancery case alive Thursday, arguing the units' are wrong in their reading of an indemnification agreement with the brass.

  • November 20, 2014

    Bankrupt Windsor Wins Nod For $189M Debt-For-Equity Plan

    Oil shipper Windsor Petroleum Transport Corp. got the blessing of Delaware bankruptcy judge Thursday for its Chapter 11 restructuring plan, which will hand the helm to bondholders via a $188.6 million debt-for-equity swap.

  • November 20, 2014

    Porter Hayden, AIG Insurers Ink $15M Asbestos Coverage Deal

    Defunct Porter Hayden Co. sought approval Thursday for a $15 million settlement of its asbestos injury coverage dispute with two American International Group Inc. insurers, telling a Maryland federal judge the deal will shield the insurers from future litigation over the asbestos claims and immediately benefit claimants.

  • November 20, 2014

    Exide Gets Nod For Plant Pact With Calif. Enviro Regulator

    A Delaware bankruptcy judge signed off on a settlement between battery maker Exide Technologies Inc. and a California environmental regulator Thursday that paves the way for Exide to restart its idled Vernon, California, lead-recycling plant.

  • November 20, 2014

    Detroit Ch. 9 Empowers Cities To Tackle Soaring Pensions

    The city of Detroit’s emergence from bankruptcy with significant concessions from its retirees offers renewed hope for municipalities across the country to address the accounting gimmickry used to avoid confronting huge employment-related liabilities, experts said at a panel discussion Wednesday.

  • November 20, 2014

    US Bank Must Face Trial Over Role In $215M Peregrine Fraud

    U.S. Bank NA must face at trial claims from the Commodities Futures Trading Commission for almost $36 million in restitution, an Iowa federal judge ruled Wednesday, in a lawsuit accusing the lender of helping bankrupt Peregrine Financial Group Inc.’s former CEO misappropriate $215 million in customer funds.

  • November 20, 2014

    Trump, Icahn Want Atlantic City's Tax Debt Auction Nixed

    Trump Entertainment Resorts Inc. and its top lender, Carl Icahn, objected Thursday to Atlantic City, New Jersey's request to auction tax certificates for $22 million the company allegedly owes, arguing its turnaround plan could be derailed if it's saddled with tax liabilities that aren't yet finally adjudicated.

  • November 20, 2014

    Top NY Court Shoots Down Ch. 7 Bid To Sell Widow's Lease

    An elderly woman's rent-stabilized lease cannot be sold to her Manhattan landlord to satisfy her bankruptcy debt, New York's top court ruled on Thursday, holding that such cut-rate leases amount to a public assistance benefit that is exempt from creditors.

  • November 19, 2014

    Caesars Reveals Plan To Turn Largest Unit Into REIT

    Troubled casino operator Caesars Entertainment Corp. on Wednesday disclosed a proposal to convert its primary arm into a real estate investment trust, a plan floated by the company as part of its closed-door restructuring talks with key creditors.

  • November 19, 2014

    Apple Deal Looks Bad For Bankrupt GT, Noteholders Say

    Noteholders of GT Advanced Technologies Inc. objected Tuesday to a settlement between the bankrupt company and Apple Inc., saying “extraordinary allegations” of Apple's anti-competitive dealings in a recently unsealed document raise questions about the fairness of the settlement.

  • November 19, 2014

    Brookfield Backs Out Of $110M Deal To Buy Revel Casino

    Brookfield Property Partners, a Canadian real estate company, has withdrawn plans to buy Atlantic City's Revel Casino Hotel, backing out of its deal to purchase the bankrupt property for $110 million following a disagreement with the power plant that provides Revel's long-unpaid utilities. 

  • November 19, 2014

    Marion Lender Wants 'Bad-Faith' Ch. 11 Dismissed

    A distressed investor owed $34 million by the bankrupt U.S. wing of Australia’s Marion Energy Ltd. pushed a judge on Tuesday to throw out a Chapter 11 case initiated by the debtor to prevent a forced liquidation of its sole asset, an underperforming Utah natural gas field.

  • November 19, 2014

    DC Circ. Urged To Revive Challenges To Dodd-Frank, CFPB

    A group of 11 states and several private plaintiffs urged the D.C. Circuit on Wednesday to revive their constitutional challenge to the Consumer Financial Protection Bureau and aspects of the Dodd-Frank Act, including its orderly liquidation process, arguing they had suffered concrete injuries that gave them standing to sue.

  • November 19, 2014

    Mexico Sells $2B In 10-Year Bonds With New Default Clauses

    The Mexican government sold $2 billion in 10-year bonds amid strong demand, locking in the country’s lowest-ever interest rate on bonds that included new clauses designed to smooth the default process in the aftermath of Argentina’s recent sovereign debt issues, according to a Tuesday statement.

  • November 19, 2014

    RG Steel Forges Deal To Cut $84M Linde Claim By Half

    RG Steel LLC asked a Delaware bankruptcy judge late Tuesday to greenlight a deal it struck with industrial gas supplier Linde LLC that cuts its $83.7 million in claims nearly in half and reduces the debtor’s administrative liabilities in an attempt to provide some recovery for unsecured creditors.

  • November 19, 2014

    Madoff Trustee Told To Tweak Mass Repleading Bid

    The bankruptcy trustee for Bernard Madoff’s investment fund on Wednesday moved forward with his effort to replead dozens of cases against entities that purportedly benefited from the notorious Ponzi scheme, after a New York bankruptcy judge instructed the trustee to address the few objections to repleading.

  • November 19, 2014

    Trump Resorts Must Prove Case Shouldn't Become Ch. 7

    A Delaware bankruptcy judge on Wednesday ordered Trump Entertainment Resorts Inc. to show why its Chapter 11 case shouldn't be converted to a Chapter 7 liquidation after agreement over the debtor's disclosure statement, which he indicated a day earlier he would approve, fell apart.

  • November 19, 2014

    Dangers Lurk For Investors In Health Care Turnarounds

    Midmarket health care providers, under pressure from Affordable Care Act changes to federal reimbursement practices, are expected to increasingly seek bankruptcy protection, where the power of regulators to dictate restructuring terms and block asset sales creates unique risks for investors, attorneys say.

  • November 18, 2014

    Madoff Fund Reaches $95M Settlement With Picard

    Senator Fund SPC will pay $95 million to close out a tug-of-war with the bankruptcy trustee for Bernard L. Madoff Investment Securities LLC over Senator's withdrawals before BLMIS' bankruptcy, trustee Irving H. Picard announced Tuesday.

  • November 18, 2014

    IberiaBank Fights Ch. 11 Release Of Claims Over $10M Loan

    IberiaBank Corp. on Tuesday asked the Eleventh Circuit to reinstate its suit over a $10 million real estate loan against the owner of formerly bankrupt FFS Data Inc., arguing that the releases in the company's reorganization plan do not extend to the owner's personal guaranty of the loan.

Expert Analysis

  • Stay Violations And 'The Computer Did It' Defense

    Doron Kenter

    Bankrupt Wedco Manufacturing Inc. may have been within its rights to assert automatic stay violation claims against one of its creditors as a result of the creditor's computer error, but the bankruptcy court may ultimately decide that any damages suffered by Wedco — in the form of time spent by counsel on the contempt motion — were entirely of its own doing, says Doron Kenter of Weil Gotshal & Manges LLP.

  • The Print Room: How To Spend Less And Get More

    Senthil Rajakrishnan

    Our estimates indicate that some law firms spend up to $8,000 per attorney each year on print-related costs. Although we live in a digital world, hard copy printing will remain an important part of business for years to come. Changing technology, however, offers opportunities to improve efficiencies and save money, say Senthil Rajakrishnan and Ryan Mittman of HBR Consulting LLC.

  • 9th Circ. Limits Twombly, Iqbal Pleading Standards

    Steven Wilamowsky

    In addition to establishing limits on the equitable mootness doctrine in bankruptcy, the Ninth Circuit’s Mortgages Ltd. decision last week confirms that the tightened federal pleading standards ushered in by Twombly and Iqbal do not give courts license to summarily disregard a party’s factual allegations at the pleading stage simply because they choose not to believe those allegations, say Steven Wilamowsky and Alix Brozman of Bing... (continued)

  • MBS Investors Entitled To Increased Bankruptcy Recoveries

    Shan A. Haider

    In addition to securities litigation, the financial crisis yielded many bankruptcy filings by parties connected to the issuance of mortgage-backed securities. MBS investors, however, have found some solace through increased recoveries in decisions reached in the Washington Mutual and Lehman Brothers bankruptcy cases, says Shan Haider of Perkins Coie LLP.

  • Dewey Partner Clawback Ruling May Hurt New York Law Firms

    Evan C. Hollander

    Unless the recent ruling in the Dewey & LeBoeuf LLP bankruptcy case is overturned on appeal or the New York Legislature amends the state’s fraudulent transfer and partnership laws, partners of New York firms will bear greater risk if their firms fail than will members of many non-New York partnerships. This risk factor might even affect decisions by prospective lateral partners about which firms to join, say attorneys with Arnold & Porter LLP.

  • Crumbs Decision Protects TM Licensees’ 365(n) IP Rights

    Norman S. Rosenbaum

    A recent District of New Jersey decision in the case of Crumbs Bake Shop Inc. is significant because it further illuminates alternative solutions for key unresolved legal questions regarding the treatment of rejected trademark licenses in bankruptcy. Crumbs also has practical implications for the sale of intellectual property portfolios in bankruptcy cases, say attorneys with Morrison & Foerster LLP.

  • A New Playing Field For Distressed Municipalities

    Benjamin D. Feder

    The perception that public employee pension obligations cannot be impaired in bankruptcy suffered a damaging blow nearly a year ago in the Detroit bankruptcy case, and has now been fatally wounded by a ruling in the Chapter 9 case of Stockton, California. While public employee pensions are no longer sacrosanct, impairment will require a lengthy, expensive and determined effort, says Benjamin Feder of Kelley Drye & Warren LLP.

  • Recent Interrelatedness Ruling Has Opened A Can Of Worms

    Kevin M. LaCroix

    The question of whether or not a subsequent claim is interrelated with a prior claim is a recurring directors and officers insurance coverage issue, but the sweep of a district judge’s generalizations about interrelatedness issues in a case stemming from a real estate financing transaction and the subsequent bankruptcy of International Benefits Group could be read in a way that could cause problems in other cases, says Kevin M. LaC... (continued)

  • UCC Filing Lessons From Delaware's GM Ruling

    Jeffrey R. Dutson

    A Delaware Supreme Court determination in a case related to the General Motors Corp. bankruptcy — that the subjective intent of a secured party is irrelevant when the party has reviewed and authorized a Uniform Commercial Code filing — highlights the importance of conducting regular reviews of UCC filings to ensure that secured parties’ interests remain perfected, say attorneys with King & Spalding LLP.

  • 7 Lessons From The Detroit Bankruptcy

    Sean T. Scott

    Detroit came up with a variety of creative fiscal solutions meant to benefit various subsets of its creditors, and, at least for now, it appears to have obtained the bankruptcy court’s blessing for arguably disparate treatment of various creditor constituencies, say attorneys with Mayer Brown LLP.