Chassix Inc. creditors on Friday objected to aspects of its Chapter 11 plan, telling a New York bankruptcy court that the company was trying to coerce them into releasing claims against Chassix’s directors and the chassis manufacturer’s private equity sponsor over pre-bankruptcy dividends.
Junior creditors in Caesars Entertainment Operating Co. Inc.'s bankruptcy proceedings on Friday urged an Illinois bankruptcy judge to force Kirkland & Ellis LLP to turn over documents they contend may show a conflict, the latest development in their bid to disqualify the firm from representing the company.
Commercial creditors will pursue more debt restructurings that don't require stepping foot in bankruptcy court if lawmakers heed an influential reform commission's calls to cut back secured lender rights, experts said at a Friday discussion.
PricewaterhouseCoopers LLP will pay $65 million to settle class action litigation with MF Global Holdings Ltd. customers who accused PwC of negligently failing to identify the bankrupt brokerage’s alleged scheme to deceive investors about its financial stability, according to filings in New York federal court Friday.
Dozens of units of Brazilian industrial company Schahin Group requested bankruptcy protection in Brazil on Friday as the company announced plans to exit the construction business entirely, citing liabilities of 6.5 billion Brazilian reais that cannot be refinanced in a credit market wary after an economy-shaking scandal at Petrobras.
Sweports Ltd. has asked the U.S. Supreme Court to determine whether a bankruptcy case's dismissal bars a creditors' committee from seeking about $1.1 million in fees in Chapter 11 court, saying the Seventh Circuit’s decision to recognize such jurisdiction creates a circuit split and defies the doctrine of mootness.
Risk and information services outfit Altegrity Inc. told a Delaware bankruptcy judge Friday it would identify contractors and government clients of the unit that vetted U.S. National Security Agency leaker Edward Snowden but requested authority to seal similar data Dow Jones & Co. Inc. has sought about its other businesses.
An Ohio federal judge refused Friday to restart a paused malpractice suit against McDermott Will & Emery LLP over the firm's advice to former scrapbooking giant Antioch Co. LLC on employee stock payouts, despite the firm's insistence that no settlement is possible and that a Sixth Circuit ruling could add a year to the litigation.
A New Jersey federal judge issued a bench ruling on Friday morning barring the new owner of the shuttered Revel Casino Hotel in Atlantic City from using equipment claimed by the resort’s former energy supplier to restore power to the building following a weeklong blackout.
Retailer Simply Fashion Ltd. filed for bankruptcy Thursday, telling a Florida court that its 247 stores were hit hard by the recession, after it got its start buying assets from other bankrupt retailers.
General Motors Co. and the U.S. Treasury told a D.C. federal court Thursday a private watchdog group’s Freedom of Information Act suit seeking emails on the government’s 2009 bailout negotiations with automakers must be shut down, saying allegedly damning new information on the negotiations produced by the group is tangential and adds nothing to their argument.
In upholding General Motors Co.'s shield blocking suits over actions that occurred before the auto giant's 2009 collapse, a New York bankruptcy judge may have precluded plaintiffs in litigation over the carmaker's deadly ignition switch defect from arguing a continuing pattern of deception, an argument they need to put New GM on the hook for hefty punitive damages.
A Delaware bankruptcy judge granted Australian satellite company NewSat Ltd. temporary protection that will stop contractors from jettisoning their agreements, hours after insolvency proceedings commenced in its home country and it filed a petition for Chapter 15 recognition in the United States.
A New York state judge has ordered an 80-year-old bankruptcy attorney to spend 30 days in jail after authorities accused him of stealing more than $950,000 from his former law firm, his lawyer confirmed to Law360 on Thursday.
Orange County newspaper The Little Saigon News Inc. filed for Chapter 11 bankruptcy in California on Thursday, saying a defamation fight with a competitor left it with a destructive $4.5 million debt it couldn't pay.
Grupo OAS, one of the many construction outfits implicated in a corruption scandal ravaging Brazil's economy, filed for creditor protection in New York on Wednesday, the first of an expected wave of related bankruptcies that leave investors at the mercy of the relatively untested Brazilian insolvency regime.
A bankruptcy judge has appointed Winston & Strawn LLP to lead an investigation into transactions that Caesars Entertainment Operating Co. Inc. stakeholders say swept significant value out of the company before it officially went bankrupt.
Creditors in Texas power giant Energy Future Holdings Corp.'s $42 billion bankruptcy haven't yet given up their fight for hundreds of millions of dollars in penalties they say they're owed because EFH paid off loans early, filing a trial brief Wednesday urging the court to modify the bankruptcy stay so that a key date no longer triggers the penalties.
The energy company locked in a literal power struggle with the new owner of the shuttered Revel Atlantic City in New Jersey released a statement Thursday undercutting several options that have been floated to restore the casino hotel's electricity following a weeklong blackout.
The Texas Commission on Environmental Quality on Wednesday approved a more than $2.4 million penalty against Exide Technologies Inc. for waste violations at the battery maker's lead reclamation facility in Frisco.
The Fifth Circuit’s decision in Barron & Newburger PC v. Texas Skyline Ltd. overrules prior precedent and adopts a broader, more permissive standard for approval of attorneys' fees under Section 330 of the Bankruptcy Code. The prospective standard could benefit financial advisers as well, says Elisha Graff of Simpson Thacher & Bartlett LLP.
A New York state appellate court decision approving a settlement agreement involving a large group of certificate holders for mortgage-backed securities, for which Bank of New York Mellon serves as trustee, reinforces that a trustee’s discretionary acts should not be second-guessed provided that the trustee acted in good faith, reasonably and prudently, say attorneys with Arent Fox LLP.
If we were developing a system to determine legal fees from a clean slate, we would price our professional services according to quality, efficiency and results — tasks and team would be agreed upon. Instead, we have an hourly system that discourages tight management, can lead to padded bills and includes time for work that may not have been necessary, says Gerald Knapton of Ropers Majeski Kohn & Bentley PC.
The Ninth Circuit’s recent decision in the case of Tristar Esperanza Properties LLC essentially says, “once a shareholder, always a shareholder,” and reminds us that Section 510(b)’s mandatory subordination rules impact entire categories of claims and make it extremely difficult to collect on any equity-like claim in bankruptcy, says Robert Eisenbach of Cooley LLP.
The majority view is that a landlord is entitled to payment of rent reserved by the lease for the period after the filing of the petition and prior to rejection or assumption of the lease whether or not the debtor has vacated the property. But in many cases, a trustee will seek to avoid the rent claim, says Ira Herman of Thompson & Knight LLP.
Avoid using “no comment” in response to a question or statement from reporters. Some reporters, particularly TV news reporters, are simply trying to elicit a reaction for a quick visual and aren’t particularly concerned with the actual answer, says Jolie Balido, president of marketing communications firm Roar Media.
Sixty-eight percent of legal technology professionals expect their organizations’ investments in legal data analytics to increase over the next two years. That is just one of the results of a recent survey of more than 125 legal professionals, say Laurie Fischer and Nathalie Hofman of Huron Legal.
In the RadioShack bankruptcy case — and the many others with consumer data stored and claimed as assets to be valuated and liquidated — the question arises as to the stewardship of that data. Given loosely interpreted statutes, a plaintiff could conceivably make a significant privacy violation assertion, say members of Topper Consulting and Manatt Phelps & Phillips LLP.
Proposed amendments help clarify the scope of Bankruptcy Rule 3002.1 so that creditors can better anticipate when they will be required to comply with its notice provisions. Nonetheless, certain shortcomings persist, including its broad application to daily simple interest loans, home equity lines of credit and loan modifications, say attorneys with K&L Gates LLP.
When the U.S. Supreme Court decides Baker Botts LLP v. Asarco LLC, it is expected to clarify the limited circumstances, if any, in which counsel pursuing a contested fee application can also be compensated for the time spent in defense of that application. While the decision will necessarily be limited to the Bankruptcy Code, it could have far-reaching implications in a number of other state court and common law contexts, say Mark ... (continued)