AIG Property Casualty Inc. urged a Delaware bankruptcy judge to reject Hospitality Staffing Solutions Group LLC's proposed $22.9 million sale to a private equity firm, claiming Thursday that the deal would unfairly benefit the buyer to the detriment of unsecured creditors.
The liquidation trustee for the estate of Getty Petroleum Marketing Inc. has filed an adversary complaint against the men who purchased the company from a unit of OAO Lukoil for $1 in 2011, claiming the buyers drained $6.5 million from the company mostly to line their own bank accounts.
A Delaware bankruptcy judge on Thursday blessed the $40 million sale of private equity-owned Edwin Watts Golf Shops LLC to a joint venture composed of an industry competitor and a liquidator, the same twosome that bowed out as a stalking horse bidder two weeks earlier.
LightSquared Inc. on Wednesday urged a New York federal judge not to toss its adversary suit claiming Dish Network Corp. and its chairman, Charlie Ergen, illegally bought more than $1 billion in bankrupt LightSquared's debt, arguing it has provided ample evidence Ergen wasn't acting for his benefit alone.
The trustee for folded law firm Howrey LLP launched an adversary complaint in a California court against Seyfarth Shaw LLP on Wednesday, seeking to recover money made by former Howrey lawyers when they took their unfinished business to Seyfarth.
Video game icon Atari Inc. on Thursday received a bankruptcy court’s approval for its restructuring plan that allows it to exit Chapter 11 and keep its French parent in control of the company.
For ten months, Chadbourne & Parke LLP’s Howard Seife oversaw the enormous investigation and subsequent report on Ally Financial Inc.’s potential liability with respect to Residential Capital LLC’s bankruptcy, an undertaking that helped score him a spot among Law360's 2013 Bankruptcy MVPs.
The residential association of Miami hotel and condominium development One Bal Harbour emerged victorious Wednesday evening at a bankruptcy auction for the property's common areas with a $13.4 million bid.
An attorney for oil drilling equipment holding company Gulfco Holding Corp. told a Delaware bankruptcy judge Wednesday that the company filed for Chapter 11 protection in a bid to negate a lender takeover of its nondebtor operating affiliate Gulf Coast Machine & Supply Co.
Auction house Christie’s on Wednesday said works of art owned by the city of Detroit could be worth between $452 million and $866 million, valuations the bankrupt city requested as it contemplates how to cut down its staggering debt.
A Mississippi bankruptcy judge on Tuesday granted final approval for Advantage Rent A Car to secure a $36 million loan from Catalyst Capital Group Inc., which plans to buy the bankrupt rent-a-car company at a Dec. 9 auction.
Charter air service provider Global Aviation Holdings Inc. asked a Delaware bankruptcy court late Tuesday to consider a plan for a stalking horse auction to a unit of Cerberus Capital Management LP, setting the floor with an as-yet undetermined credit bid against first-lien debt.
Gary Lee of Morrison & Foerster LLP has had a knockout year representing bankrupt financial services firms, guiding mortgage giant Residential Capital LLC through one of the most complex bankruptcy proceedings in the past year and earning him a spot on Law360’s list of 2013 bankruptcy MVPs.
Customers suing AMR Corp. and US Airways Group Inc. once again were stymied in their efforts to block the airlines' merger when a New York bankruptcy judge on Wednesday rejected their request to halt the implementation of the joinder pending an appeal of an earlier decision.
A Delaware bankruptcy judge blessed a slate of first-day motions for OCZ Technology Group Inc. on Wednesday, including approval of a $23.5 million debtor-in-possession financing package that will keep the computer drive maker running as it pursues a Section 363 sale with stalking horse bidder Toshiba Corp.
Commercial bankruptcy filings are down 28 percent over this time last year, and overall bankruptcy filings have dropped 15 percent, putting the country on pace for the lowest level of petitions since 2007, according to figures released Wednesday.
The United States on Tuesday objected to the auction of private equity-owned retailer Edwin Watts Golf Shops LLC in Delaware bankruptcy court, saying it wants details about a contract between Edwin Watts and the Army and Air Force Exchange Service before it is transferred through the sale.
The liquidating trustee for bankrupt Getty Petroleum Marketing Inc. launched a slew of adversary complaints Tuesday against Greenberg Traurig LLP and other creditors seeking to recover more than $7.7 million in debt the fuel company paid out in the months leading up to its insolvency.
Residential Capital LLC announced Tuesday it had reached a deal with a group of bondholders opposed to its liquidation plan, resolving a long-running feud over interest payments with a settlement that would see junior secured noteholders recover an additional $125 million.
A judge’s Tuesday ruling that Detroit is eligible for bankruptcy relief came as no surprise, but his finding that public pensions can be reduced during a bankruptcy was an unexpected and forceful stand that is likely the start of a hotly contested appeals process.
There is very little that unsecured creditors can do post-petition to increase recoveries on their prepetition claims. However, where an unsecured creditor continues to provide unique services that may not be readily available from another provider, the creditor might have leverage to insist on getting paid for its prepetition claim, says Steven Wilamowsky of Bingham McCutchen LLP.
In re Flugence in the Fifth Circuit is important because of its implications for other instances in which litigation is commenced for the purpose of making creditors whole, but which may nonetheless produce recoveries in excess of the amount necessary to do so. Courts outside the Fifth Circuit are not in clear agreement, says Steven Wilamowsky of Bingham McCutchen LLP.
In light of the Third Circuit’s recent ruling in In re KB Toys, both buyers and sellers of bankruptcy claims should investigate a creditor’s preference exposure by seeking information from the creditor and by reviewing a debtor’s statement of financial affairs, say attorneys with Haynes and Boone LLP.
Following the financial crisis of 2008, regulations were put in place to enact transparency and protect individual investors in complex financial markets. Although this has left many to believe that financial instruments have become more transparent and that there will likely be less securities litigation going forward, the reality is likely to be more complex than that, says Ilan Guedj of ARPC.
The U.S. Supreme Court once famously warned against a “literal approach” to the application of the Sherman Act. Literalism, according to the court, is “overly simplistic and often overbroad.” And we learn again in Gulf States Reorganization Group v. Nucor Corp. that a rival’s “lousy” intent alone does not violate the act, says Alan Kusinitz of Proskauer Rose LLP.
Where both intellectual property and a third-party license to use the IP are being sold together to a single buyer, the sale will generally be allowed. However, practitioners should be aware of potential objections from nondebtor licensees in situations where the debtor/licensor serves a role beyond that of mere recipient of periodic royalties, says Neil Herman of Morgan Lewis & Bockius LLP.
A new avenue of recovery has just been opened to Madoff victims. The U.S. Attorney for the Southern District of New York recently announced that the Madoff Victim Fund would begin accepting claims. Those who lost money invested with Madoff — indirectly or directly — should be aware of several aspects of the MVF so they can maximize their recovery, say James Masella and Jeremy Weinberg of Patterson Belknap Webb & Tyler LLP.
When a franchisee files for bankruptcy, a franchisor naturally has concerns over how the process will affect the parties’ relationship. Accordingly, a franchisor must timely object to a debtor’s motion to assume and assign its franchise or that right may be waived, says Valerie Morrison of Wiley Rein LLP.
Mandated law student pro bono programs have not worked in championing the causes of social justice for those unable to afford counsel. States would be far better off using their resources to insist on a legislative solution to a very troubling and persistent deficiency in the allocation of legal resources, says Fred Isquith of Wolf Haldenstein Adler Freeman & Herz LLP.
While the Delaware Chancery Court’s approach to Orchard Enterprises Inc. was limited to the facts of the case, there are at least two other options that can be considered in valuing preferred stock. In particular, the option pricing methodology has become a well-recognized approach to allocate enterprise value among security holders, say Louisa Galbo and Jaime d'Almeida of Duff & Phelps Corp.