Bankruptcy

  • January 26, 2024

    TIAA Sues Ex-SVB Execs Over Losses From Bank's Failure

    Former directors and executives of Silicon Valley Bank have been hit with a suit in California federal court by financial services giant TIAA over losses it allegedly suffered when the bank imploded under the weight of a bulging portfolio of interest rate-sensitive assets.

  • January 26, 2024

    Kirkland, Other Firms Seek $23M Fees In Cyxtera Ch. 11

    Law firms and professional advisers have filed final fee applications exceeding $23 million in the New Jersey bankruptcy case of data center provider Cyxtera Technologies Inc., including a request from Kirkland & Ellis LLP for $14.5 million in legal fees.

  • January 26, 2024

    Unpaid Royalties Not Ch. 11 Estate Property, 3rd Circ. Says

    Underpaid royalties on natural gas from leased land are property of the landowners under Colorado law, the Third Circuit has ruled, overturning a Delaware bankruptcy court's finding that the disputed funds belonged to the Chapter 11 estate of a former drilling company.

  • January 26, 2024

    Pa. Judge OKs Stream TV Ch. 11 Trustee, Del. Debt Action

    A Pennsylvania bankruptcy judge has ordered a trustee to take over the Chapter 11 bankruptcy proceedings of 3D television maker Stream TV Networks and subsidiary Technovative Inc., while also allowing a Delaware Chancery Court case seeking to establish control of Technovative to go forward.

  • January 26, 2024

    Ebix Ch. 11 Financing Survives Challenge To $70M Roll Up

    A Texas bankruptcy judge approved a $105 million post-petition financing package in the case of insurance software company Ebix Inc. on Friday, overruling an objection from the Office of the U.S. Trustee concerning a rolling up of $70 million in existing debt.

  • January 26, 2024

    Insurers Say Imerys' Mediation Request Cuts Them Out

    A group of insurers has asked the Delaware bankruptcy court to reject bankrupt talc producer Imerys' bid to extend mediation over its Chapter 11 plan, saying the request is really meant to cut the insurers out of mediation.

  • January 26, 2024

    COVID-19 Sends Canadian '4D' Movie Co. To Ch. 15 In Del.

    Canadian "4D" movie company SimEx-Iwerks Entertainment filed for Chapter 15 recognition of its Canadian restructuring proceedings Thursday in Delaware bankruptcy court after it said revenue didn't recover following the COVID-19 pandemic.

  • January 26, 2024

    Patent Manager IPwe Plans Ch. 11 Sale With Shareholder Bid

    Patent trading platform operator IPwe received approval from a Delaware bankruptcy judge Friday to take out up to $500,000 in Chapter 11 financing the company says it will need to stay afloat long enough to put its assets on the block.

  • February 08, 2024

    Law360 Seeks Members For Its 2024 Editorial Boards

    Law360 is looking for avid readers of its publications to serve as members of its 2024 editorial advisory boards.

  • January 26, 2024

    Piper Aircraft Asks Fla. Court To Modify Claims Trust

    Piper Aircraft Inc. — which emerged from bankruptcy in 1995 with a trust meant to handle future claims for injuries caused by faulty aircraft — has sued to modify the 28-year-old trust, which it says holds $70 million in assets but is paying out very little in claims each year, while burning through millions in legal fees.

  • January 26, 2024

    Marketing Co.'s Unsecured Creditors Blast Sale Proposal

    The unsecured creditors in Manhattan-based marketing firm Troika Media Group's Chapter 11 case have asked a New York bankruptcy judge to reject the company's plan for a sale to its secured lender, alleging the transaction would only benefit secured lenders and leave the business administratively insolvent.

  • January 26, 2024

    Bankrupt Water Gremlin Says It Wants To Survey Tort Claims

    Water Gremlin Co. told a Delaware bankruptcy judge Friday that it is in talks with environmental regulators to close the sale of its lead battery terminal and fishing sinker plant while it tries to get a handle on what kind of tort liability the plant is leaving it with.

  • January 25, 2024

    Eye Care Tech Co. Gets Tentative OK For $8M DIP

    Optometry software maker Eye Care Leaders received tentative approval Thursday from a Texas bankruptcy judge to tap into $8 million of debtor-in-possession financing from a private equity firm looking to buy the company in a Chapter 11 sale.

  • January 25, 2024

    Insurer Can't Block Chapter 11 Asbestos Plan, Justices Told

    Two companies seeking Chapter 11 bankruptcy protection with asbestos claims alongside asbestos claimant representatives urged the U.S. Supreme Court to reject an insurer's opposition to their proposed reorganization plan, in a case that could change who can participate in the often protracted bankruptcy process.

  • January 25, 2024

    Gambling Biz Ch. 11 Approval Must Be Undone, Court Told

    The liquidating trustee for the former parent of a gambling machine manufacturer has urged a Delaware bankruptcy court to unwind the confirmation of the subsidiary's Chapter 11 plan, arguing it should get to explore allegations leveled by the underlying business's new owners that the old management conspired to "loot" the company.

  • January 25, 2024

    US Fights Trustee's Demand Of Avenatti's Tax Return Info

    The U.S. government asked a California federal judge Thursday to allow it to appeal a bankruptcy court's decision ordering disgraced attorney Michael Avenatti's tax returns to be released to the trustee overseeing the estate of Eagan Avenatti LLP's bankruptcy, arguing that disclosing them undermines Congress' interest in protecting the confidentiality of the information.

  • January 25, 2024

    Service Snag Delays Hospital Operator's Ch. 11 Confirmation

    California-based hospital operator Alecto Healthcare Services LLC will wait until March to seek confirmation of its proposed Chapter 11 plan as a small-business debtor, after attorneys told a Delaware bankruptcy judge Thursday it hadn't served notice of the proposal to roughly 700 creditors. 

  • January 25, 2024

    6th Circ. Won't Reverse 'Willy-Nilly' For Investment Firm

    A Sixth Circuit panel told investment firm Stout Risius Ross Inc. it wouldn't reverse a Michigan federal court's decision "willy-nilly" at oral arguments Thursday, when the firm sought to prevent partial reimbursement for underlying stock valuation litigation while its insurer continued to fight for total payback.

  • January 25, 2024

    Aircraft Biz, Noteholders Spar Over Recap Deal In Ch. 11 Trial

    A bankrupt aircraft component supplier and a group of its noteholders on Thursday traded jabs in Texas bankruptcy court at the start of a trial over whether a 2022 debt recapitalization was an illegitimate insider deal or the best option the company had.

  • January 25, 2024

    Patent Marketplace Co. IPwe Hits Ch. 11 In Del.

    IPwe, a patent trading platform operator, is petitioning for Chapter 11 protection in Delaware with about $7.2 million in debt, a significant portion of which is held by IBM, citing an inability to adapt to changing market conditions, prolonged software sales cycles and difficulties in securing additional equity capital.

  • January 25, 2024

    Brazilian Airline GOL Files Ch. 11 With Over $1B Debt Load

    Low-cost Brazilian airline GOL Linhas Aereas Inteligentes SA filed for Chapter 11 bankruptcy Thursday in New York, listing between $1 billion and $10 billion in debt and saying it has obtained commitments for $950 million in post-petition financing from existing bondholders to restructure its balance sheet.

  • January 25, 2024

    Glenn Beck Tries To Sink Canceled-Cruise Suit In Arkansas

    Conservative commentator Glenn Beck and his company, Blaze Media, have argued they lack the business connections to Arkansas necessary to face a proposed class action there concerning cruise ticket refunds following a COVID-related cancelation, further claiming the issue is bound to arbitration.

  • January 24, 2024

    Latham Ducks Sanctions In Sorrento Ch. 11

    A Texas bankruptcy judge Wednesday declined to level sanctions against Latham & Watkins LLP over their disclosures about their work with a lawyer who was dating the judge overseeing Sorrento Therapeutics Inc.'s Chapter 11, but did not yet rule on sanctioning Jackson Walker LLP in the same case, saying further inquiry was needed.

  • January 24, 2024

    PG&E Judge Voices 'Frustration' At Atty Arguing Counsel Bid

    A California judge overseeing PG&E's bankruptcy voiced "frustration" at a hearing Wednesday over investors' arguments on a motion to appoint interim lead counsel in a parallel securities suit, telling the plaintiffs' attorney he was "going around in circles" answering questions on how the class action procedures interact with the bankruptcy process.

  • January 24, 2024

    Chancery Taps Lampert For $18.3M After Unfair Sears Deal

    Minority stockholders of Sears Hometown and Outlet Stores were awarded more than $18.3 million Wednesday in a first-of-its-kind Delaware Chancery Court finding that controllers of a company can owe duties of good faith and care to a company and minority stockholders.

Expert Analysis

  • Pa. Ruling Sheds New Light On Ch. 9 Eligibility Requirements

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    A Pennsylvania bankruptcy court’s recent ruling that the city of Chester qualified for municipal bankruptcy relief provides insight into the finer points of Chapter 9 eligibility, including the requirements for debtor insolvency, state law authorization and good faith negotiation, say attorneys at Cadwalader.

  • Lawyer Discernment Is Critical In The World Of AI

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    In light of growing practical concerns about risks and challenges posed by artificial intelligence, lawyers' experience with the skill of discernment will position them to help address new ethical and moral dilemmas and ensure that AI is developed and deployed in a way that benefits society as a whole, says Jennifer Gibbs at Zelle.

  • What To Know About Filing SVB, Signature Creditor Claims

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    The Federal Deposit Insurance Corporation has advised companies that provided services to Silicon Valley Bank or Signature Bank before they closed to file a creditor claim, but the category is broad and even those who only think they may be a creditor of the failed banks should file a proof of claim ahead of the July deadlines, say David Bizar and William Hanlon at Seyfarth.

  • SVB's Collapse Is A Setback For Tech Startups

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    Silicon Valley Bank's collapse and absorption into a more traditional bank may diminish funding opportunities for tech startups in the short run, though alternative lenders could step up to fill the gap, says Chris Spillman at Biztech Lawyers.

  • Don't Forget Alumni Engagement When Merging Law Firms

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    Neglecting law firm alumni programs after a merger can sever the deep connections attorneys have with their former firms, but by combining good data management and creating new opportunities to reconnect, firms can make every member in their expanded network of colleagues feel valued, say Clare Roath and Erin Warner at Troutman Pepper.

  • A Convergence Of Factors Hurts SVB Securities Class Action

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    Shareholders have filed a class action against Silicon Valley Bank and its senior executives alleging securities fraud, but the unique circumstances leading up to the collapse, like higher interest rates and an asset-liability mismatch, complicate the task of assigning sole responsibility for SVB's downfall, say Atanu Saha and Narinder Walia at StoneTurn.

  • Without Stronger Due Diligence, Attys Risk AML Regulation

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    Amid increasing pressure to mitigate money laundering and terrorism financing risks in gatekeeper professions, the legal industry will need to clarify and strengthen existing client due diligence measures — or risk the federal regulation attorneys have long sought to avoid, says Jeremy Glicksman at the Nassau County District Attorney’s Office.

  • Failed Bank Execs Could Be Targets After Biden Proposals

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    Of President Joe Biden's three regulatory proposals following last month's bank collapses, legislation expanding the Federal Deposit Insurance Corporation's clawback authority would likely present the greatest risk to executives of failed banks going forward, say attorneys at Norton Rose.

  • Every Lawyer Can Act To Prevent Peer Suicide

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    Members of the legal industry can help prevent suicide among their colleagues, and better protect their own mental health, by learning the predictors and symptoms of depression among attorneys and knowing when and how to get practical aid to peers in crisis, says Joan Bibelhausen at Minnesota Lawyers Concerned for Lawyers.

  • Bank Failures Contribute To Increased Restructuring Activity

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    A look at recent turbulence in the regional banking sector shows the potential for a period of heightened regulatory scrutiny of current business practices and exposures, and that it’s likely the 2023 uptick in restructuring activity will continue, says Michael Eisenband at FTI Consulting.

  • Heed PCAOB's Warning On Proof-Of-Reserves Reports

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    While directed at investors, the Public Company Accounting Oversight Board's recent advisory on proof-of-reserves reports is a timely and stark warning to crypto entities, as well as their customers and accounting firms, to tread carefully in their reliance on these reports as proof of financial stability, say Patrick Bryan and Deborah Meshulam at DLA Piper.

  • Building On Successful Judicial Assignment Reform In Texas

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    Prompt action by the Judicial Conference could curtail judge shopping and improve the efficiency and procedural fairness of the federal courts by implementing random districtwide assignment of cases, which has recently proven successful in Texas patent litigation, says Dabney Carr at Troutman Pepper.

  • Opinion

    10th Circ. Ruling Could Gut Homeowners' Ch. 13 Safety Net

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    The Tenth Circuit’s recent ruling in Doll v. Goodman could spell the end of Chapter 13 protection for consumers in a number of states, and if the decision is replicated in other circuits, homeowners across the country could lose their homes for lack of a viable bankruptcy administration, says former U.S. Bankruptcy Judge Catherine Bauer, now at Signature Resolution.

  • A Curious Bankruptcy Case Where Bad Behavior's Overlooked

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    In the recent and somewhat unusual Shannon Rose Fasano case, an Idaho bankruptcy court ruled that the party making a late appeal request passed the excusable neglect test, despite the party's mistreatment of the judge and opposing counsel, and his default on a promissory note, says Daniel Lowenthal at Patterson Belknap.

  • Do Videoconferences Establish Jurisdiction With Defendants?

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    What it means to have minimum contacts in a foreign jurisdiction is changing as people become more accustomed to meeting via video, and defendants’ participation in videoconferencing may be used as a sword or a shield in courts’ personal jurisdiction analysis, says Patrick Hickey at Moye White.

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