Bankruptcy

  • February 16, 2024

    Firms Connected To 1MDB Scandal Seek Ch. 15 In US

    Liquidators overseeing the bankruptcies of five alleged shell companies that they say received an estimated $1.5 billion from 1Malaysia Development Bhd., a Malaysian government-owned fund at the heart of an international corruption scandal, asked a Florida bankruptcy court to grant Chapter 15 recognition of their British Virgin Islands liquidations.

  • February 15, 2024

    NRA Accuses NY AG Of Political Bias As Trial Closes

    Lawyers for the National Rifle Association and its former CEO Wayne LaPierre accused New York Attorney General Letitia James of political bias in their final trial arguments Thursday, while a government attorney said this "witch hunt" defense is merely a distraction from the gun group's misuse of charitable assets.

  • February 15, 2024

    Instant Brands May Have Rights Against Supplier, Judge Says

    A Texas bankruptcy judge issued a tentative ruling that could favor appliance and housewares maker Instant Brands in its dispute with a supplier objecting to the Chapter 11 plan's treatment of indemnification claims.

  • February 15, 2024

    Invitae Can Use Cash Collateral For Speedy Ch. 11

    Bankrupt genetic testing company Invitae Corp. on Thursday got the approval of a New Jersey bankruptcy court for routine first-day motions as it moves toward a planned April auction of its assets.

  • February 15, 2024

    Court Mulls If Claims Buyer Qualifies For Special Ch. 11 Trust

    A Delaware bankruptcy judge on Thursday considered whether a company that pursues claims on behalf of medical insurers and healthcare organizations can be paid from a specialized opioid trust created by the 2022 Chapter 11 plan of Irish pharmaceutical company Mallinckrodt PLC.

  • February 15, 2024

    Judge Doubts NY Diocese Has Enough Votes For Ch. 11 Plan

    A New York bankruptcy judge said Thursday the Roman Catholic Diocese of Rockville Centre had sufficiently explained its Chapter 11 plan to creditors, but appeared skeptical that it will garner the necessary votes for approval.

  • February 15, 2024

    Byju's Insiders Seek Ch. 11 Dismissal, Calling It Litigation Ploy

    Affiliates of Indian tech giant Byju's U.S. arm, which are embroiled in state court litigation with the company's lender, asked a Delaware bankruptcy judge to dismiss the company's Chapter 11 case, saying the bankruptcy petition was filed to stymie the ongoing state court litigation.

  • February 15, 2024

    DIP Lenders Sue Allegiance Coal Over $1.8M In Unpaid Fees

    Debtor-in-possession lenders of bankrupt mining operation Allegiance Coal USA Ltd. have filed a Chapter 11 adversary suit in Delaware, saying the company has not paid them $1.8 million in fees owed under a court-approved DIP loan order.

  • February 15, 2024

    4E Agent Floats Plan To Hand Disputed Atty Fees To Creditors

    The Chapter 11 agent for hand sanitizer maker 4E Brands Northamerica LLC has asked a Texas bankruptcy judge to approve a modified reorganization plan that would allow unsecured creditors to recover fees that Jackson Walker LLP may be forced to disgorge over an ethics scandal involving a former partner.

  • February 15, 2024

    Peer Street Hits Back Against Ch. 7 Conversion Efforts

    Bankrupt real estate investment firm Peer Street Inc. hit back at creditors' motions to convert its case to a Chapter 7 liquidation, saying to the Delaware bankruptcy court that conversion would torpedo its restructuring plan, which has the support of secured creditors and the unsecured creditors committee.

  • February 15, 2024

    Appliance Parts Co. Robertshaw Hits Ch. 11 With $833M Debt

    Illinois-based appliance part maker Robertshaw filed for Chapter 11 protection in a Texas bankruptcy court Thursday with nearly $833 million in debt and a purchase offer from a lender group.

  • February 14, 2024

    NY Top Court Weighs Weinstein's 'Prior Bad Acts' Evidence

    New York's highest court asked tough questions of all sides as they heard former Hollywood mogul Harvey Weinstein's appeal of his rape conviction Wednesday, focusing on whether it was fair to present accusations of uncharged crimes to the jury.

  • February 14, 2024

    Telecom Confusion Caused $56M Damages, Conn. Judge Told

    A telecommunications company's confusion about bankruptcy law played a key role in the disintegration of a contract for Los Angeles telephone switching equipment and related telecom services, a company seeking $56 million told a Connecticut state judge on Wednesday as a bench trial kicked off in the 14-year-old case.

  • February 14, 2024

    Pharma Co. Humanigen Gets OK For Ch. 11 Sale

    Drug researcher Humanigen Inc. can sell nearly all of its assets to a company formed by its CEO, a Delaware bankruptcy judge ruled Wednesday, after the debtor, the buyer and the official committee of unsecured creditors struck a deal resolving objections to the Chapter 11 sale.

  • February 14, 2024

    NY Suggests LaPierre Owes Millions As NRA Trial Ends

    New York state attorneys on Wednesday scrutinized former National Rifle Association CEO Wayne LaPierre's testimony that he rectified all his improper spending by repaying $1 million to the gun group, pointing out that LaPierre racked up nearly $13 million in charges for private jet travel alone.

  • February 14, 2024

    Bed Bath & Beyond Execs Given Access To $10M In Insurance

    An insurer for bankrupt housewares retailer Bed Bath & Beyond will cover up to $10 million in legal costs incurred by company executives who were subpoenaed or named as defendants in litigation connected to the store, a New Jersey bankruptcy court said.

  • February 14, 2024

    Breast Implant Co. Wants Ch. 11 Sale Closed In 60 Days

    A Delaware bankruptcy judge granted breast implant manufacturer Sientra preliminary approval Wednesday to tap $22.5 million in Chapter 11 financing and start the process of selling its business within a two-month timetable.

  • February 14, 2024

    NY Objects To Rite Aid Bid To Close More Stores

    The state of New York asked a New Jersey bankruptcy judge Wednesday to keep two Rite Aid stores in Buffalo and Poughkeepsie, New York, out of the list of stores slated for closure in the pharmacy chain's Chapter 11 case, saying the closures would reduce pharmacy access for people in those communities.

  • February 14, 2024

    SmileDirectClub Trustee Wants To Cut Leases To Stop Losses

    The Chapter 7 trustee for dental care company SmileDirectClub Inc. submitted an emergency motion in a Texas court to end more than 100 active leases and discard related assets, aiming to slow the depletion of limited resources during the company's liquidation process.

  • February 14, 2024

    Perkins Coie Keeps Malpractice Win Over Trustee's Standing

    Perkins Coie LLP this week secured a Texas state appellate decision that upheld the dismissal of a malpractice lawsuit brought by a bankruptcy trustee for one of the firm's former clients, with the appellate panel concurring with a trial judge that the trustee lacked standing to pursue the claims.

  • February 14, 2024

    Genesis Gets Nod To Sell $1.6B In Grayscale Shares In Ch. 11

    Cryptocurrency lender Genesis Global won a New York bankruptcy judge's approval Wednesday to start selling more than $1.6 billion of shares in Grayscale Investments trusts to fund payouts to creditors, defeating an objection by Digital Currency Group over sale timing and the parent company's plea to consult on transactions.

  • February 14, 2024

    Genetic Testing Co. Invitae Files For Ch. 11 With $1.5B Debt

    California-based genetic testing company Invitae Corp. has filed for Chapter 11 protection in New Jersey with nearly $1.5 billion in debt and what it said is an agreement with senior noteholders to seek a buyer.

  • February 13, 2024

    ABA Asks Agency To End Use Of 'Master,' Citing Slavery Tones

    Calling someone a "court-appointed master" carries negative connotations due to the term's use during slavery, the American Bar Association's president wrote in a letter urging the Administrative Office of the U.S. Courts to adopt the term "court-appointed neutral" instead.

  • February 13, 2024

    NH Power Plant Says Electricity Deal Is Leaving It Broke

    The operator of a biofuel power plant in New Hampshire received the go-ahead from a Delaware bankruptcy judge Tuesday to keep the lights on for another week while it negotiates over a contract the debtor insists is forcing it to produce electricity for free.

  • February 13, 2024

    SAS Ex-Cabin Crew Defends Bid For Pension Pay In Ch. 11

    More than 40 pensioners of bankrupt Scandinavian airline SAS have told a New York bankruptcy court that their claims should not be thrown out, saying SAS cannot brush off its obligations by pointing the finger at the pension fund when the fund acts as its proxy.

Expert Analysis

  • Perspectives

    How Attorneys Can Help Combat Anti-Asian Hate

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    Amid an exponential increase in violence against Asian American and Pacific Islander communities, unique obstacles stand in the way of accountability and justice — but lawyers can effect powerful change by raising awareness, offering legal representation, advocating for victims’ rights and more, say attorneys at Gibson Dunn.

  • Opinion

    Congress Needs To Enact A Federal Anti-SLAPP Statute

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    Although many states have passed statutes meant to prevent individuals or entities from filing strategic lawsuits against public participation, other states have not, so it's time for Congress to enact a federal statute to ensure that free speech and petitioning rights are uniformly protected nationwide in federal court, say attorneys at Skadden.

  • As Subchapter V's Popularity Rises, So Do Its Boundaries

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    Recent data and bankruptcy court rulings give greater context to Subchapter V’s popularity, but also show how courts continue to interpret its provisions to establish limits and contours, such as the sequence of filing for affiliate debtors, say Jack O’Connor and Heidi Hockberger at Levenfeld Pearlstein.

  • A Comparison Of 2 Bank Failures, With Regulatory Lessons

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    Though the factors that contributed to the downfalls of Silicon Valley Bank and First Republic Bank were similar, differences in federal regulators' handling of the banks' sales — and the additional two weeks it took to find a buyer for SVB — may help illuminate how regulators can improve their response to future financial panic, say attorneys at Lewis Brisbois.

  • Some Client Speculations On AI And The Law Firm Biz Model

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    Generative artificial intelligence technologies will put pressure on the business of law as it is structured currently, but clients may end up with more price certainty for legal services, and lawyers may spend more time being lawyers, says Jonathan Cole at Melody Capital.

  • Shkreli Cos. Bankruptcy Illustrates Novel Subchapter V Trend

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    Vyera Pharmaceuticals and related companies founded by convicted "Pharma Bro" Martin Shkreli recently filed for bankruptcy under Subchapter V in Delaware, becoming the latest case to show the appeal of the subchapter for debtors with large contingent or unliquidated liabilities seeking a more efficient form of bankruptcy, says Sam Ashuraey at Paul Hastings.

  • A Lawyer's Guide To Approaching Digital Assets In Discovery

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    The booming growth of cryptocurrency and non-fungible tokens has made digital assets relevant in many legal disputes but also poses several challenges for discovery, so lawyers must garner an understanding of the technology behind these assets, the way they function, and how they're held, says Brett Sager at Ehrenstein Sager.

  • Opinion

    High Court's Ethics Statement Places Justices Above The Law

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    The U.S. Supreme Court justices' disappointing statement on the court's ethics principles and practices reveals that not only are they satisfied with a status quo in which they are bound by fewer ethics rules than other federal judges, but also that they've twisted the few rules that do apply to them, says David Janovsky at the Project on Government Oversight.

  • Bankruptcy Ruling Guides Secured Lenders On Proxy Rights

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    The Delaware bankruptcy court’s recent ruling in the case of CII Parent is an example of how a secured lender can utilize proxy rights to affect a borrower's ability to use bankruptcy as a protective tool against lender action, say David Wender and Nathaniel DeLoatch at Eversheds Sutherland.

  • Opinion

    Time For Law Schools To Rethink Unsung Role Of Adjuncts

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    As law schools prepare for the fall 2023 semester, administrators should reevaluate the role of the underappreciated, indispensable adjunct, and consider 16 concrete actions to improve the adjuncts' teaching experience, overall happiness and feeling of belonging, say T. Markus Funk at Perkins Coie, Andrew Boutros at Dechert and Eugene Volokh at UCLA.

  • Ch. 13 Ruling Issues Warning To Mortgage Servicers

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    The Ninth Circuit Bankruptcy Appellate Panel’s recent ruling in Orlansky, which held that the mortgage servicer violated the automatic stay in its post-petition communication to debtors, suggests that circuit bankruptcy courts may more closely scrutinize how certain fees are presented in monthly statements, say Justin Paget and Jennifer Wuebker at Hunton.

  • Good Faith Buyer Lessons From 5th Circ. Bankruptcy Ruling

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    The Fifth Circuit’s recent ruling in Palm Springs II, affirming the sale of property to a senior lender, is notable for its guidance on Section 363(m), including the ability of a senior lender to remain a good faith purchaser despite squeezing out a junior lender, says Shane Ramsey at Nelson Mullins.

  • Tips For In-House Legal Leaders In A Challenging Economy

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    Amid today's economic and geopolitical uncertainty, in-house legal teams are running lean and facing increased scrutiny and unique issues, but can step up and find innovative ways to manage outcomes and capitalize on good business opportunities, says Tim Parilla at LinkSquares.

  • How Cities Can Tackle Post-Pandemic Budgeting Dilemmas

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    Due to increasing office vacancies around the country, cities may consider politically unpopular actions to avoid bankruptcy, but they could also look to the capital markets to ride out the current real estate crisis and achieve debt service savings to help balance their budgets, say attorneys at Cadwalader.

  • What Associates Need To Know Before Switching Law Firms

    Excerpt from Practical Guidance
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    The days of staying at the same firm for the duration of one's career are mostly a thing of the past as lateral moves by lawyers are commonplace, but there are several obstacles that associates should consider before making a move, say attorneys at HWG.

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