Bankruptcy

  • February 5, 2016

    GCs Name Best Of The Best Attorneys

    More than 60 lawyers have been recognized by corporate counsel for cracking the code of client satisfaction and standing out among their peers for at least two years straight.

  • February 5, 2016

    8 Firms Boast The Most Client-Savvy Attorneys

    The names of eight law firms were repeatedly on the lips of general counsel this year as they reported which attorneys stood out to them as the best of the best in client service.

  • February 5, 2016

    Filene's Basement Blasts Ex-CEO Syms' Bid For Severance

    Filene's Basement is fighting an attempt by Marcy Syms, former chief of the retailer’s corporate parent Syms Corp., to recover severance from the company, calling the request a “cash grab” in documents filed Friday in Delaware bankruptcy court.

  • February 5, 2016

    Ponzi Scheme, Fraud Cited In Real Estate Co.'s Ch. 11

    Parties on both sides of a Connecticut real estate consortium’s unfolding Chapter 11 case on Friday likened it to a Ponzi scheme, as a Delaware bankruptcy judge pressed creditors and debtors to work out an emergency funding compromise for the group’s cash-short commercial and residential properties.

  • February 5, 2016

    Oil & Gas Co. Osage Exploration Dips Into Ch. 11

    Citing the steady decline in crude oil and natural gas prices, oil and gas developer Osage Exploration and Development Inc. on Thursday said that it has filed for bankruptcy, with a plan to execute a sale of all of its assets.

  • February 5, 2016

    LeClairRyan Grabs Bankruptcy Pro From Hodgson Russ

    LeClairRyan has picked up a bankruptcy and creditors’ rights expert who has extensive experience working with hedge-fund creditors for a partnership in its New York office, hiring her away from Hodgson Russ LLP.

  • February 5, 2016

    Swift Energy Gets Nod To Solicit Creditors On Ch. 11 Plan

    A Delaware bankruptcy judge gave Swift Energy the go-ahead Friday to solicit creditors on its Chapter 11 plan to swap out $900 million in bond debt for equity in a reorganized company, despite some expressing alarm over how unexpectedly elastic their recoveries were slated to be.

  • February 5, 2016

    Argentina Floats $6.5B Deal To End Epic Default Battle

    Argentine President Mauricio Macri is floating a $6.5 billion deal to settle a slew of litigation with holdout bondholders over the country’s 2001 debt default, a court-appointed mediator said Friday.

  • February 5, 2016

    Lehman Sues Lenders Over Faulty Mortgage Sales

    Lehman Brothers Holdings Inc. has sued nearly 60 mortgage originators that it says sold it faulty mortgages that resulted in the failed investment bank paying more than $1.2 billion in settlements with Fannie Mae and Freddie Mac.

  • February 5, 2016

    Atlantic City Ordered To Pay $62.5M Casino Tax Refund

    A New Jersey judge on Friday ordered Atlantic City pay the overdue $62.5 million tax refund it owes to Borgata Hotel and Casino on Tuesday, but gave the cash-strapped municipality a 45-day window so a new plan for the state's financial intervention has time to unfold.

  • February 5, 2016

    WTC Contractor Gets Nod For March Ch. 11 Auction

    A New York construction firm that ran into financial problems after starting work on the 3 World Trade Center office tower in lower Manhattan got court approval Friday to go ahead with a March bankruptcy auction led by a $7.2 million stalking horse bid from Banker Steel.

  • February 5, 2016

    HSBC Will Pay $601M In Federal-State Mortgage Case

    HSBC Holdings PLC on Friday agreed to pay $601 million in a series of settlements with state and federal regulators and law enforcement agencies related to its mortgage origination, servicing and foreclosure activities.

  • February 4, 2016

    $75M New Gulf DIP, Disclosure Cleared at 11th Hour

    Oklahoma-based New Gulf Resources secured 11th hour approvals in Delaware late Thursday for a final $75 million debtor-in-possession loan and Chapter 11 disclosure, amid warnings of future challenges to the company restructuring plan and $570 million debt rework.

  • February 4, 2016

    KaloBios Can Keep Control Of Bankruptcy

    A Delaware bankruptcy judge let KaloBios' new management keep control Thursday of the drugmaker's Chapter 11, mounted two weeks after ousted CEO Martin Shkreli was charged with securities fraud, after hearing a potentially lucrative drug development deal, thought dead, was still on the table.

  • February 4, 2016

    7th Circ. Blocks Trustee From Seizing Rare Book of Mormon

    An Illinois law that exempts religious texts from being collected and sold in bankruptcy applies even to high-value texts, the Seventh Circuit ruled Thursday, preventing a trustee from getting her hands on a first-edition Book of Mormon.

  • February 4, 2016

    Lehman Defends $83M Swap Suit Against Barclays

    Lehman Brothers Holdings defended Thursday in New York court an $83 million lawsuit accusing Barclays Bank PLC of working with an investment firm to manipulate an interest swap agreement, saying Barclays seized upon on Lehman’s 2008 bankruptcy to get a sweetheart deal on a replacement swap.

  • February 4, 2016

    Japanese Co. Wins Halt To Claimants' Bids For Fuel Payment

    A New York federal judge has barred ING Bank NV and other companies from filing lawsuits seeking payments from a Japanese marine-equipment supplier for the delivery of marine fuel, agreeing with the supplier that it faced multiple liability for the same claims.

  • February 4, 2016

    50 Cent Seeks OK To Extend Contract As Effen Vodka Rep

    Rapper 50 Cent asked a Connecticut federal judge Wednesday to approve an extension to his contract to represent Jim Beam Brands Co.’s Effen brand of vodka, saying under the contract amendment he will no longer have to contribute to Effen’s marketing budget.

  • February 4, 2016

    4 Firms Guide Italian Hotel Group's $123M Restructuring

    Four law firms steered Italian hotel group Bauer and Blue Skye Investment Group through a bankruptcy restructuring of Bauer’s €110 million ($123 million) debt, which includes a new bond issuance and the sale of hotels and farm businesses, according to a statement Thursday.

  • February 4, 2016

    Charney, Ex-Workers Target American Apparel Ch. 11 Stay

    Ousted American Apparel CEO Dov Charney and other former workers at the reorganizing retailer asked a Delaware bankruptcy judge Wednesday to lift a stay barring them from pursuing employment-related and other claims in Los Angeles, California, superior court, arguing that the company's insurance fund would bear any resulting liability. 

Expert Analysis

  • 'Uptiering' As A Strategy To Restructure Oil Cos.

    Jennifer Wisinski

    The key question that many exploration and production companies currently face is what the best strategic options to survive the depressed crude oil price market are. The most notable development in 2015 in out-of-court restructurings has been the use of junior-lien financings and “uptiering” transactions, say attorneys with Haynes and Boone LLP.

  • Why Banks Shouldn't Ignore Fraudulent-Transfer Red Flags

    Mark A. Salzberg

    The bankruptcy case of Sentinel Management should be required reading for all lenders since, in a matter before the Seventh Circuit, two banks’ failure to investigate their borrower’s questionable activity caused them to lose their security and have their secured loans reduced to unsecured claims, say Mark Salzberg and Jeff Cole of Squire Patton Boggs LLP.

  • Credit Default Swaps And Solvency Analysis

    Jeffrey L. Baliban

    A considerable area in solvency analysis relates to fraudulent conveyances in bankruptcy, but a similar analysis can arise in derivative instruments drafted under the International Swaps and Derivatives Association forms. Determining when a corporation actually became insolvent can be crucial to the characterization of payments as either preferential or potentially fraudulent, says Jeffrey Baliban of Citrin Cooperman & Co. Ltd.

  • Common Interest Protection In Commercial Transactions

    Stephen Ram

    The Second Circuit's decision in Schaeffler v. U.S., which involved Schaeffler Group withholding privileged debt restructuring documents from the IRS, falls in line with an emerging consensus of jurisdictions flexibly applying the common interest doctrine to commercial and corporate transactions, says Stephen Ram of Stradling Yocca Carlson & Rauth PC.

  • The Sweet Sound Of A 363

    Steve Gubner

    The idea of a bankruptcy sale of substantially all of a firm's assets under Section 363 of the Bankruptcy Code usually brings to mind a depressed company with potential buyers waiting in the wings to buy the assets at a substantial discount. This does not have to be the case, as evident in the case of California-based DigitalSound, say Steve Gubner and Reed Bernet of Brutzkus Gubner.

  • Expectation Damages Now A Real Possibility In Delaware

    Philip Richter

    The Delaware Supreme Court’s decision in SIGA Technologies v. PharmAthene — stemming from a bridge loan and merger agreement between the two when SIGA was in dire financial straits — changes the calculus for a party considering whether to breach an obligation to negotiate an agreement in good faith as there is now a potential for expectation damages, say attorneys with Fried Frank Harris Shriver & Jacobson LLP.

  • Some Clarity On Madoff Recovery Calculations

    John H. Thompson

    A recent Southern District of New York opinion reinforced the common theme underlying all Madoff-related litigation — recovery will turn on the net amount of cash invested into and withdrawn from an account. The decision should enable account holders and the Madoff estate trustee to easily calculate the net equity of accounts that engaged in inter-account transfers, say John Thompson and Alex Lurie of McGuireWoods LLP.

  • Cicero On Legal Advocacy

    Eliot J. Walker

    Today’s lawyers might be surprised to find that the teachings of Cicero remain relevant to modern practice. In recognition of the ancient Roman orator's birthday this month, Skiermont Derby LLP attorney Eliot Walker offers three practice points for lawyers and politicians plucked from Cicero’s seminal dialogue on rhetoric.

  • 4 Ways To Improve The Business Intake Process

    Terrence J. Coan

    When executed properly, an efficient new business intake process can drive growth, minimize risk, and ensure new clients support a law firm’s business and financial objectives. But determining how to streamline the NBI process is easier said than done, says Terrence Coan, leader of HBR Consulting LLC's information governance and risk management practice.

  • The ABCs Of Bankruptcy Filing By Assignees And Receivers

    Tamar Dolcourt

    Parties often look to nonbankruptcy remedies such as assignments for the benefit of creditors, or ABCs, to deal with distressed companies. But when assignees and receivers believe that filing bankruptcy would be the best option for a troubled entity, they may not be empowered to do so, says Tamar Dolcourt of Foley & Lardner LLP.