A Delaware bankruptcy judge granted PSL North America LLC final approval of an $11.5 million debtor-in-possession package Monday after the industrial pipe manufacturer reached a deal with secured creditors concerned that their liens were being primed by the loan.
Less than three weeks ahead of a blockbuster confirmation trial, the city of Detroit on Friday submitted a new version of its bankruptcy exit plan that envisions for the first time an extended period of financial oversight by an independent, court-appointed monitor.
Insurer creditors for bankrupt Plant Insulation Co. urged a California federal judge on Monday to reverse a bankruptcy court's approval of Plant's latest reorganization plan, arguing that the plan flouts a Ninth Circuit order by forcing Plant's trust to purchase a majority of Plant's shares at four times their value.
A New York bankruptcy judge on Monday ruled that Lehman Brothers Holdings Inc. cannot de-prioritize a number of securities fraud claims relating to certain collateralized mortgage-backed securities in its Chapter 11 bankruptcy, saying the MBS are not securities "of the debtor or of an affiliate of the debtor."
With less than 56 hours left to solve a debt-repayment impasse, Argentina got permission Monday evening to make interest payments on certain bonds because of a newly discovered technicality — but the clock will keep ticking, and the special master for the country's debt crisis announced a new round of talks for Tuesday.
A Florida property management company on Monday sued its former counsel claiming the firm botched a foreclosure proceeding that ended in a $5.8 million judgment and drove the company into Chapter 11 protection.
A Delaware bankruptcy judge on Monday blessed Fisker Automotive Holdings Inc.’s Chapter 11 liquidation plan, allowing the electric-car maker's estate to distribute the proceeds from its $149.2 million sale to a unit of Wanxiang Group Corp.
A proposed bankruptcy court settlement of Fontainebleau Las Vegas casino and resort executives’ liability for the failure of the $2.9 billion project came under renewed attack on Friday as mortgage lenders owed more than $700 million complained that it would impair a forthcoming lawsuit against Bank of America NA.
An Indiana federal judge on Friday cleared McGuireWoods LLP of helping insiders at Heartland Memorial Hospital LLC plunder the health care system's assets during a 2006 leveraged buyout that led to its bankruptcy, finding no impropriety in the underlying transaction.
RPM International Inc. has agreed to pay nearly $800 million into a trust over four years to handle asbestos-related injury claims against its Specialty Products Holdings Corp. unit and lift the home-repair products maker out of bankruptcy in Delaware, the company announced Monday.
Plaintiffs in a class action claiming they were harmed by exposure to food coloring chemical diacetyl have asked the U.S. Supreme Court to review a Third Circuit ruling that Aaroma Holdings LLC cannot be held liable because it purchased those assets from now-bankrupt Emoral Inc., saying the decision sets a dangerous precedent.
Bankrupt nursery-products maker Kid Brands Inc. asked a New Jersey judge Thursday for permission to sell brand names like Tiddliwinks, Kids Line, and Perfect Bum to Crown Crafts Infant Products Inc. for $1.35 million.
GSE Environmental Inc., which makes containment products for industrial work sites, won the blessing of a Delaware bankruptcy judge Friday for a Chapter 11 plan that will hand control of the reorganized company to secured lenders in a $173 million debt-for-equity swap.
The Second Circuit on Friday dismissed Berger & Associates Attorneys PC’s attempt to recoup legal fees stemming from an aborted referral agreement, rejecting the law firm's argument that its former business partner was barred from bankruptcy relief for concealing or destroying evidence.
An online technology company on Friday fought to keep a bankrupt attorney formerly with Antonelli Terry Stout & Kraus LLP in a malpractice suit accusing the firm of botching a patent application for online advertising inventions, citing tactical implications.
Bond insurer Ambac Assurance Corp. on Friday unveiled details of a settlement with Detroit over the bankrupt city’s treatment of limited tax-general obligation bonds, reporting it will see a minimum 34 percent recovery that could rise if the city successfully voids a disputed $1.5 billion borrowing.
The U.S. unit of the bankrupt Canadian Nortel Networks Inc. submitted a settlement deal Thursday that will cap at just over $1 billion the amount of interest the telecommunications company’s bondholders can collect on their holdings, according to a filing in Delaware federal court.
Former CEO Eric Bloom of the bankrupt Sentinel Management Group Inc.on Wednesday lost a bid to overturn a March guilty verdict that found he operated a $500 million securities fraud scheme, reached by a jury Bloom said made its decision out of laziness and a desire to be finished quicker.
A New Jersey bankruptcy judge on Thursday gave Crumbs Bake Shop Inc. the green light to move ahead with plans to sell off its assets at a bankruptcy auction in August, with an investor group serving as the stalking horse bidder for the now-shuttered New York cupcake chain.
Troubles worsened within Portugal’s Espirito Santo banking empire Thursday when prosecutors arrested the former chief executive of Banco Espirito Santo in a money-laundering and tax-evasion probe and a third company in the group sought court protection from creditors.
U.S. Bankruptcy Judge Sean Lane of the Southern District of New York in the case of Genco Shipping & Trading Limited waded into the controversy by considering the appropriateness of third-party releases — and nonconsensual ones at that, says Frank Grese of Weil Gotshal & Manges LLP.
The Eleventh Circuit’s ruling in Crawford v. LVNV Funding leaves open the possibility that the Fair Debt Collection Practices Act and related state corollary statutes may be applicable to bankruptcy proofs of claim, which will likely result in increased litigation against debt collectors and, potentially, actual creditors, say attorneys with Hunton & Williams LLP.
In this e-discovery era, why aren't more litigants using Federal Rule of Evidence 502(d) orders and affording themselves basic protection of their most sensitive information? Or, if they are moving for such orders, why are they doing it wrong? asks John Rosans of Katten Muchin Rosenman LLP.
Judge Jed Rakoff’s recent ruling in the case of Madoff Securities gives comfort to foreign investors that the proceeds of their indirect investments in U.S. companies will not likely be clawed back, but it does not come without certain warnings and limitations — especially considering a contradictory Ninth Circuit ruling issued a mere three days prior to Rakoff’s decision, say attorneys with Orrick Herrington & Sutcliffe LLP.
The Fifth Circuit opinion in Goldsby v. 804 Congress suggests that even where parties agree upon foreclosure-related fees, costs and charges before a bankruptcy, Section 506(b) of the Bankruptcy Code may still trump the provisions of their contract, says Debra McElligott of Weil Gotshal & Manges LLP.
A growing trend in the Southern District of New York akin to a sua sponte rocket docket can provide defendants with an opportunity to set the tone of discovery and shift the burden and risks of the schedule to their adversaries, say Isaac Greaney and Jackie Lu of Sidley Austin LLP.
Finding prospective clients and retaining them has little to do with your legal training and expertise, and yet you have no practice without successful client acquisition and retention. There is no reason you cannot apply your basic legal training to successful sales efforts hinging upon your practice strength and experience, says independent law firm consultant Jennifer Topper.
The Fourt Circuit's second opinion in the case of National Heritage Foundation shows that it is imperative for the proponent of a nonconsensual nondebtor release to provide appropriate evidence to justify approving such a release, although the court did not draw a bright line as to how many of the six Dow Corning factors must be satisfied, say Jason Harbour and Tara Elgie of Hunton & Williams LLP.
Nondiverse state court defendants facing purely state law claims that seek to secure federal jurisdiction should determine whether a good faith basis exists to pursue a third-party action against a federal actor in order to trigger the representative U.S. Attorney’s certification and remove such claims under the Westfall Act, say Michael Blumenfeld and Jonathan Singer of Miles & Stockbridge PC.
A district court decision in CWCapital Asset Management v. Burcam Capital II may bolster the arguments of secured creditors in opposing cramdown efforts by debtors who may have been emboldened by other recent decisions supporting creative classification schemes, say Scott Grossman and Ari Newman of Greenberg Traurig LLP.