The Fifth Circuit on Wednesday reversed $10,000 in sanctions and a cease and desist order issued against a law firm that handles so-called “no money down” bankruptcies for debiting a client without providing a fair fee arrangement, finding that the court hadn’t provided sufficient notice of the potential punishment.
Trump Entertainment Resorts Inc. told a Third Circuit panel Wednesday that its decision to dump the collective bargaining agreement with roughly 1,000 Taj Mahal employees was supported by bankruptcy law, and the union’s position on appeal would yield a “downright absurd” result never intended under the Bankruptcy Code.
A New Jersey bankruptcy judge on Wednesday gave would-be buyers of bankrupt Revel Casino Hotel a week to come up with a better offer than Florida resort tycoon Glenn Straub’s $82 million bid for the troubled Atlantic City property, calling sale approval premature.
An Illinois bankruptcy judge on Wednesday refused to dissolve a committee of junior bondholders that is spearheading opposition to Caesars Entertainment Operating Co.’s restructuring, paying no heed to the embattled gaming company’s claim that the committee is “wasteful and unnecessary.”
A Delaware bankruptcy judge on Wednesday signed off an a pair of bonus plans that together could see RadioShack Corp. executives earn as much as $2.5 million, despite opposition from the U.S. Trustee's office.
LightSquared Inc. is heading toward another contested trial on a strategy to emerge from bankruptcy protection, but lawyers for its fiercest opponent and largest single creditor, Dish Network Corp. Chairman Charlie Ergen, said they would seek yet more delay to appeal an unfavorable ruling.
A New York federal judge on Wednesday said she refused billionaire Ira Rennert’s request for a mistrial after a jury ordered him to pay $118 million for taking shareholder dividends from bankrupt Magnesium Corp. of America because the defendants had waived their argument.
A Florida bankruptcy judge on Wednesday granted SLS Properties Three LLC summary judgment regarding the dischargeability of a bankrupt Miami real estate developer's debt in a dispute over a $15 million Las Vegas land deal.
The liquidator for Getty Petroleum Marketing Inc. on Tuesday asked a New York bankruptcy judge to sign off on a deal over $266 million in claims asserted by units of real estate investment trust and creditor Getty Realty Corp. that gives the REIT a claim of $170 million with a $550,000 cash distribution.
Lehman Brothers Holdings Inc. has put to rest a lingering dispute over soured swaps deals to finance the construction of MetLife Stadium, reaching a settlement with an affiliate of the New York Giants football team that claimed it was owed $302 million on interest hedges.
A New York federal judge on Tuesday again certified a class of investors accusing PriceWaterhouseCoopers LLP and Citco Group Ltd. of misleading them about the quality of feeder funds involved in Bernie Madoff’s Ponzi scheme after the Second Circuit vacated his previous decision in 2014.
The Ninth Circuit ruled Wednesday that the Federal Deposit Insurance Corp. can’t breach private contracts that insolvent banks struck with other parties before the FDIC stepped in and took those banks over, finding that a federal law didn’t preempt a community bank’s claims.
The U.S. Securities and Exchange Commission objected in Arizona bankruptcy court on Tuesday to the sale of assets by Chapter 11-bound SkyMall LLC on the grounds that some of the in-flight catalog producer’s assets might be subject to an outstanding subpoena in a nonpublic investigation.
TPG Capital and Apax Partners LLP said Tuesday that a lawsuit alleging they plundered $1.1 billion from Hellas Telecommunications (Luxembourg) II SCA cannot stand in light of new appellate authority protecting a wider universe of prebankruptcy payments from clawback liability.
Cal Dive International Inc. and its U.S. subsidiaries filed voluntary Chapter 11 petitions in Delaware bankruptcy court on Tuesday, the latest in a series of Texas-based oil and gas companies seeking bankruptcy protection amid a slide in crude prices.
Women's clothier Cache Inc. got the blessing of a Delaware bankruptcy judge on Tuesday for an $18 million asset sale to Great American Group LLC, which prevailed in a marathon auction that boosted the price tag by about $6.5 million..
Paul Weiss Rifkind Wharton & Garrison LLP on Monday derided an attempt by a liquidator probing an alleged $355 million fraud at China Medical Technologies Inc. to obtain documents connected to the firm’s representation of the company’s audit committee, saying a bankruptcy court correctly found the material to be privileged.
Energy Future Holdings Corp. on Tuesday resisted unsecured creditors’ request for authorization to attack holders of $24.8 billion in first-lien debt used to finance the bankrupt energy giant’s boom-era buyout, citing the potential disruption to restructuring negotiations.
American Eagle Energy Corp. didn’t make a $10 million interest payment due on $175 million worth of bonds, the Denver-based oil and gas driller said Monday, roughly two months after it announced it was suspending its drilling operations until oil prices improve.
Lawyers for the Canyon Ranch condominium project backed by Lehman Brothers Holdings Inc. unveiled a settlement Tuesday of $341 million in damages claimed by condo unit holders who fought against the Miami development’s bankruptcy sale to private equity firm Z Capital Partners.
The invalidation of the Puerto Rico Public Corporation Debt Enforcement and Recovery Act removes the immediate overhang of the law with its many unknowns and legal gray areas, and may embolden stakeholders to more aggressively press for concessions from the Puerto Rico Electric Power Authority and other public corporations, say attorneys with Moore & Van Allen PLLC and Ferraiuoli LLC.
A Third Circuit opinion in the case of Lemington Home for Aged provides a cautionary tale for directors and officers of not-for-profit health care organizations that they may be held to the same standards of accountability as those of for-profit, public corporations, especially when an organization is struggling financially, say Brian McGovern and Erik Graham-Smith of Cadwalader Wickersham & Taft LLP.
Although proceedings commenced only a month ago, Target Canada has piqued the interest of many savvy distressed investors for a number of reasons. Given that Target Canada leased 130 stores, landlords' claims will be a significant factor in creditor recoveries, and their actions should be monitored closely, says Darius Goldman of Katten Muchin Rosenman LLP.
In light of a Florida bankruptcy court decision in the case of Bayou Shores SNF LLC, health care entities may attempt to duplicate a strategy that would buy them time to turn around troubled facilities if faced with the crushing financial impact of Medicare and Medicaid termination, say attorneys with McGuireWoods LLP.
Oil companies in need of funding for capital expenditures will increasingly find alternative financing structures attractive as traditional sources of credit tighten. Royalty-based investments may become even more popular than in the past due to their flexible structure, ability to target specific assets and potential bankruptcy advantages to investors, say attorneys at Jones Day.
A lender’s expectations about the efficacy of protections designed into a loan structure may be unreasonable. Or, a borrower may simply ignore loan covenants or corporate requirements. In either case, the result could be a bankruptcy filing by an entity that was thought to be bankruptcy-remote, says Sarah Kam of Reed Smith LLP.
Thanks to Judge Chris Klein’s recently issued confirmation opinion in Stockton’s bankruptcy case, no longer will cities be able to avoid dealing with pensions in California out of a fear of facing off with CalPERS and its massive bank account, says Karol Denniston of Squire Patton Boggs LLP.
All too often, the appropriate methodology for a cramdown interest rate in Chapter 11 is a battle between the debtor and secured creditors, with the formula approach, also termed the “prime plus” approach, being one of the most dangerous for creditors, say Berger Singerman LLP attorneys Lewis Killian Jr., a former bankruptcy judge, and Ashley Dillman Bruce.
The Bankruptcy Code's focus on protection of creditor rights can impede the ability of a troubled systemically important financial institution to effectuate a resolution with the speed necessary to preserve value, protect private interests and minimize systemic risk. While a proposed legislation may modify the code to enhance the process, it does not address some important issues, say attorneys with Skadden Arps Slate Meagher & Flom LLP.
A proposed policy would significantly expand the scope of the ratepayer protection commitments that must be offered by electric utilities seeking Federal Energy Regulatory Commission approval for mergers and, as a result, may materially alter the financial calculus for companies considering those transactions. The proposed policy may also make recovery from bankruptcy even more challenging and uncertain, say attorneys with Morgan L... (continued)