Bankruptcy

  • July 31, 2014

    Longview Wants $825M Policy Fight Kept In Bankruptcy

    Coal plant operator Longview Power LLC told a Delaware bankruptcy judge Thursday that its suit over an $825 million insurance policy needs to remain before the court because the outcome is crucial to the successful resolution of its Chapter 11 case.

  • July 31, 2014

    GM Sued Over Pre-Bankruptcy Deaths, Injuries

    General Motors was hit with a new suit Thursday in New York federal court by more than 150 plaintiffs suing over injuries and deaths that took place before the automaker entered into bankruptcy in 2009, claiming the "restrictive" terms of the GM victims' compensation fund prevents them from qualifying for payouts.

  • July 31, 2014

    BofA Can't Bill Bankrupt Firm Owners For $60M Award: Judge

    A California judge said Thursday that a $60 million award Bank of America NA and Bank of the West obtained in the federal bankruptcy of Griffin Homebuilding Group LLC does not entitle the banks to collect that debt from the company's individual owners.

  • July 31, 2014

    Argentina Blames US For Debt Talks Failure, Denies Default

    Argentina’s government on Thursday said the collapse of negotiations with hedge funds demanding payment on government bonds was due to the “malpractice” of the U.S. judiciary and denied that it had defaulted on its sovereign debt for the second time in 13 years.

  • July 31, 2014

    Zodiac Pool Wades Into Ch. 15 After $1B UK Restructuring

    Private equity-controlled Zodiac Pool Solutions SAS and two affiliates filed for Chapter 15 in Delaware bankruptcy court Thursday as the pool supply company looks to enforce agreements restructuring more than $1 billion of debt that were recently approved by a U.K. court.

  • July 31, 2014

    Coal Producer New World Resources Seeks Ch. 15 Shelter

    New World Resources PLC, a Dutch coal producer focused on Central Europe, asked a New York bankruptcy court on Wednesday for creditor protection while it pursues a restructuring plan to cut €255 million ($341 million) in debt and raise new capital following years of depressed coal prices.

  • July 31, 2014

    Guggenheim Faker Can't Toss $1.7M Award Through Ch. 7

    A federal bankruptcy judge sided with Guggenheim Partners LLC and ruled that a man who allegedly used the famous surname to peddle millions in sham investments couldn't use Chapter 7 to evade a trial court's $1.69 million damages award.

  • July 31, 2014

    6th Circ. Rules Breast Implants Are Tissue Expanders

    The Sixth Circuit ruled Thursday that breast implants manufactured by Dow Corning Corp. were equivalent to tissue expanders for the purposes of a $2 billion plan settling product liability suits against the company as part of its reorganization, affirming a lower court decision.

  • July 31, 2014

    Momentive Can't Use Ch. 11 Plan to Dodge Taxes, Feds Say

    The U.S. government is afraid that Momentive Performance Materials Inc. will use its proposed Chapter 11 plan to dodge tax liability, asking a U.S. Bankruptcy Court on Wednesday to insert language in the proposal saying the plan cannot be deemed to determine federal tax treatment.

  • July 31, 2014

    AMR Bankruptcy Case Lawyers, Advisers See $375M Payday

    Lawyers, advisers and other professional services firms who worked on the bankruptcy case of former American Airlines parent AMR Corp. scored $375 million in fee awards with Weil Gotshal & Manges LLP leading the way with $74.5 million and then Debevoise & Plimpton LLP with $53.7 million.

  • July 30, 2014

    $1.75M Exec Bonus Plan OK'd In Bankrupt Revel Casino Sale

    A New Jersey bankruptcy judge on Wednesday approved a plan that would give Revel AC Inc., owner of Atlantic City’s beleaguered Revel Casino Hotel, permission to dole out $1.75 million in executive bonuses in connection with the hotel's sale.

  • July 30, 2014

    Bankrupt Natrol Gets Nod For Cerberus Settlement

    A Delaware bankruptcy judge on Wednesday blessed a settlement between nutritional supplement maker Natrol Inc. and private equity lender Cerberus Business Finance LLC, removing the specter of litigation that threatened to bog down the vitamin company’s reorganization plans.

  • July 30, 2014

    Bankruptcy Judge Keeps GM Ignition Switch Case On Pause

    A New York bankruptcy judge on Wednesday denied a bid by plaintiffs to proceed with a proposed class action against General Motors Co. over an ignition switch defect, ruling that their suit — like nearly 90 other related cases — should be stayed while he considers whether GM can use its bankruptcy defense.

  • July 30, 2014

    Detroit Pensioners Face Moment Of Truth On Ch. 9 Appeals

    The Sixth Circuit late Tuesday gave retiree groups that have inched toward abandoning their fight against Detroit’s pension-cutting plan a Thursday deadline to make up their minds, saying their decision can't wait because the appeals must be resolved before the city’s blockbuster confirmation trial.

  • July 30, 2014

    BofA Says Its Ch. 11 Plan For Real Estate Group Is Best

    Bank of America NA on Wednesday filed a disclosure statement for its proposed Chapter 11 reorganization plan for Security National Properties Funding III LLC on behalf of lenders, saying attempts at consensual resolution have failed as the debtor's properties have underperformed.

  • July 30, 2014

    4 Chinese Solar Panel Cos. Seek Novel Ch. 15 Protection

    Four Chinese solar panel companies are seeking Chapter 15 bankruptcy protection of their U.S. assets, including approximately 275,000 photovoltaic panels, in what might be the first such filing, the debtors’ attorneys at Archer & Greiner PC announced Wednesday.

  • July 30, 2014

    Lehman Trustee OK'd For 1st Unsecured Creditors Refund

    With former customers of Lehman Brothers Inc. being paid off in full, the trustee charged with winding down the failed investment house won permission in New York bankruptcy court Wednesday to create a $3 billion fund and dish out estate money to general unsecured creditors for the first time.

  • July 30, 2014

    Failed Philly Casino Venture Wins Ch. 11 Plan Approval

    A Pennsylvania federal bankruptcy judge has approved a modified Chapter 11 plan in the bankruptcy of Philadelphia Entertainment and Development Partners LP, the entity behind a planned Foxwoods casino project that fell through in 2010.

  • July 30, 2014

    Securities Discovery Ban Hinges On Subpoena Date: 9th Circ.

    The Ninth Circuit has ruled that a key securities law was never intended to ban the use of evidence requested prior to discovery freezes, reviving a class action Wednesday against the bankrupt maker of an electronic scratch-off card and greenlighting investors' evidence related to a catastrophic merger rollback.

  • July 30, 2014

    Argentina Headed To Default After Debt Talks Collapse

    Eleventh hour negotiations between the Republic of Argentina and hedge funds demanding full repayment on approximately $1.5 billion worth of government bonds collapsed late Wednesday without a deal, and a court appointed mediator said the country will “imminently" default on its sovereign debt. 

Expert Analysis

  • OPINION: Lawyers Should Think In Terms Of Big Data

    James H. Wendell

    The vast majority of civil cases in the United States settle before trial. Knowing how many on a particular topic were filed, how many settled, when they settled, and on what terms clearly would be useful to a lawyer advising a client. Big Data could make it possible — yet this type of research is generally ignored by lawyers, says James Wendell of Riddell Williams PS.

  • Tardiness Does Not Warrant Equitable Subordination

    Michael L. Cook

    The Delaware District Court’s July 21 ruling reversing the bankruptcy court in the case of Franklin Bank Corp. shows that equitable subordination of a lender’s claim will require a strong factual showing of “egregious” misconduct — and that tardiness in filing claims is not enough, says Michael Cook of Schulte Roth & Zabel LLP.

  • Death Rattle For Unfinished Business Claims?

    Angelo G. Savino

    In a departure from Jewel v. Boxer, the decisions in the cases of Thelen LLP and Heller Ehrman LLP reflect a shift in the manner by which courts treat trustees’ claims for post-dissolution fees, say Angelo Savino and Julie Moeller Albright of Cozen O'Connor.

  • How To Successfully Get Engaged By A Cayman Liquidator

    Jeremy Snead

    Recent shifts in Cayman Islands law mean that Cayman liquidators are now able to retain foreign lawyers for the liquidation of Cayman-registered funds on more flexible terms, and utilize methods of funding that are not otherwise permissible in the territory, say Tony Heaver-Wren and Jeremy Snead of Appleby (Cayman) Ltd.

  • SDNY Weighs In On Third-Party Releases In Bankruptcy

    Frank Grese

    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.

  • 11th Circ. Extends FDCPA To Bankruptcy Proofs Of Claim

    Jarrett L. Hale

    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.

  • 6 Years In, Why Haven't FRE 502(d) Orders Caught On?

    John A. Rosans

    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.

  • Rakoff's Foreign Fund Clawback Ruling Has Limitations

    Raniero D’Aversa

    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.

  • Code Trumps Contract In The 5th Circ.

    Debra McElligott

    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.

  • Trial-Ready In 180 Days: Prepare For SDNY's Rocket Docket

    Isaac S. Greaney

    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.