The Third Circuit on Friday affirmed a bankruptcy court ruling that nixed trade claims purchased from KB Toys Inc. creditors who received preferential payments, finding such claims should be disallowed regardless of who holds them.
A New York federal judge has ordered MF Global Inc. to pay $1.2 billion to commodities customers who saw their money vanish when the broker-dealer collapsed two years ago, and slapped the brokerage with a $100 million penalty, according to a statement released Monday.
There are more arrogant law firms than in years past, according to a new survey of corporate counsel, but one familiar firm has risen above them all.
The number of law firms that Fortune 1000 clients say offer excellent client service grew by 9.8 percent over the past year, a sign that firms with broader services are separating themselves from the competition, according to a new survey of corporate counsel.
Attentive client service, not size, continues to be the critical factor for general counsel at the world's largest corporations, according to a recent survey of corporate counsel, who gave top marks to a mix of large and midsize law firms.
Hog grower AgFeed Industries Inc. balked Friday at a request from the U.S. trustee's office for the court to reconsider its executive bonus plan, arguing that a Wells notice issued by the U.S. Securities and Exchange Commission in September is not new evidence, as the bankruptcy watchdog contends.
Bankrupt oil and gas producer GMX Resources Inc. launched a suit Wednesday claiming Emerald Oil Inc. breached a confidentiality agreement by using information it obtained as a potential bidder in GMX's Chapter 11 sale to snap up a mineral lease in North Dakota.
The Second Circuit on Friday declined to rule on a bid by Thelen LLP's liquidating trustee to overturn a decision finding that he cannot recover fees earned by ex-partners from cases they brought to Seyfarth Shaw LLP when Thelen dissolved, saying a New York state court must first consider the issue.
Both the estate of defunct electric carmaker Coda Holdings Inc. and the employees suing it for allegedly improper layoffs pushed back Thursday against an objection from a unit of private equity buyer Fortress Investment Group LLC to the settlement they'd reached, arguing the deal makes confirming a Chapter 11 plan possible.
Dewey & LeBoeuf LLP’s trustee sued the Woodrow Wilson International Center for Scholars in New York bankruptcy court Thursday in an attempt to claw back $100,000 Dewey paid to the think tank for a table at an event.
Residential Capital LLC scored a significant victory Friday when a bankruptcy judge ruled that a group of junior secured noteholders are not entitled to $342 million in additional interest on the debt they hold, ending the first part of a lengthy and hotly litigated dispute.
A management company with a stake in the $350 million of Jersey City, N.J., real estate that's at the center of Liberty Harbor Holding LLC's Chapter 11 reorganization plan accused the developer on Tuesday of failing to provide key details on litigation over the property's ownership and of playing "ping-pong" with its claims.
The parties on both the Canadian and U.S. sides of the dispute on how to divide $7.5 billion raised in the liquidation of Nortel Networks Corp. asked the Delaware bankruptcy court Thursday to again delay the start of trial, arguing the deposition schedule is moving slower than expected.
The Michigan bankruptcy judge overseeing Detroit’s Chapter 9 proceedings on Thursday shot down the city’s request to keep the fees attached to its $350 million financing package from Barclays Capital Inc. under wraps following outcry from unions and retirees.
An affiliate of bankrupt TC Global Inc. on Wednesday launched an adversary suit against the debtor and the new Tully’s Coffee Shops owner in Washington bankruptcy court, alleging a breach of a licensing agreement allowing the affiliate to market the Tully’s brand in Asia.
New York's top court on Thursday affirmed the dismissal of malpractice claims against Steven Fox and Paul Traub, two lawyers who struggled to pay a bankrupt business part of an insurance settlement tied to the 9/11 terrorist attacks after that money got caught up in the infamous Dreier LLP meltdown.
A top U.S. Department of Justice antitrust official voiced skepticism Thursday of Delta Air Lines Inc.'s bid for airport slots set to be divested as part of a merger settlement with US Airways Group Inc. and bankrupt American Airlines parent AMR Corp.
With Yucaipa Cos. LLC waiting to snap up Fresh & Easy Neighborhood Market at auction, the bankrupt grocery chain said Wednesday it hopes to ditch 53 other properties in a $41.5 million sale to a Fortress Investment Group LLC affiliate.
A Delaware bankruptcy judge allowed the second Chapter 11 proceeding in as many years for Global Aviation Holdings Inc. to take off from Delaware on Thursday, and gave the interim nod to a $52 million revolving post-petition loan from lenders led by a unit of Cerberus Capital Management LP.
Two former executives of Overseas Shipholding Group Inc. on Tuesday urged a New York federal judge to throw out, for good, an investor class action accusing them of hiding the company’s $35 million tax debt that ultimately drove it into bankruptcy.
It is possible that a recent Eleventh Circuit ruling will lead to a fundamental change in the direction of case law for litigation over tax refunds and tax-sharing agreements between insolvent holding companies and their bank subsidiaries, causing courts in the future to rule for the Federal Deposit Insurance Corporation, say Philip Anker and Nancy Manzer of WilmerHale LLP.
Citizens Business Bank v. Alexis M. Grevorgian and the line of cases relied upon therein make it clear that California courts will not hesitate to deem subordination agreements unenforceable when lenders and developers enter into side agreements without the knowledge and consent of the subordinated seller, says Brian Lauter of Robins Kaplan Miller & Ciresi LLP.
The absolute priority rule provides that a nonaccepting class of creditors cannot be compelled to accept less than full compensation while a more junior creditor receives anything under the plan. Plan proponents attempt to circumvent the rule through a “gifting doctrine,” but beware that many jurisdictions are critical of the doctrine, says Gary Kaplan of Fried Frank Harris Shriver & Jacobson LLP.
Every so often, you may want to tank a mediation. Maybe you know in advance it can’t settle. Maybe the blood is so bad between lawyers or clients that you just want to teach a lesson to the other side. It could be that you think the judge is really enjoying all of the discovery disputes or doesn’t have enough to do. Whatever the reason, here are the top 10 ways to blow a mediation, says Jim Leshaw of Leshaw Law.
Electronic discovery is a hot topic in the litigation world, but surprisingly little has been written about it from a bankruptcy perspective. To that end, an American Bar Association working group recently prepared a best practices report — a guiding principle of which is the importance of proportionality considerations when addressing the issue of preservation and production of ESI in connection with bankruptcy cases, says Venable LLP's Richard Wasserman, chairman of the ABA Electronic Discovery in Bankruptcy Working Group.
The Sixth Circuit ruling in Lindsey v. Pinnacle National Bank, in conjunction with rulings by four sister circuit courts, has the potential to make Chapter 11 cases more expensive by forcing a debtor to negotiate, propose and solicit acceptances on a new plan of reorganization while simultaneously preserving its right to appellate review of its preferred — but unconfirmable — plan. It could also encourage the Supreme Court to resolve the circuit split, say Marc Skapof and Ferve Ozturk of BakerHostetler LLP.
The Seventh Circuit's recent decision in Scottie Pippen's defamation suit against online media outlets over reports he was bankrupt means that Internet publishers are subject to the same standard as the traditional media, and can be held liable for only the first publication of a given statement. Perhaps more importantly, this ruling clarifies that the passive maintenance of a website does not trigger fresh claims, say Rodger Cole and Sean Wikner of Fenwick & West LLP.
Considering whether American Airlines and US Airways will succeed in closing on their merger, with AAMRQ’s stock price down 83 percent and LCC’s stock price down 15 percent on the day the DOJ filed its complaint, market evidence might be interpreted to suggest that the government will prevail in enjoining the merger. However stock prices do not reflect a great deal of private information that could affect the outcome, says Boris Steffen of Gavin Solmonese LLC.
If a Chapter 11 plan does not provide at least the liquidation value to a class of impaired claims or interests, each holder that does not accept the plan can prevent its confirmation, whether or not the holder’s class accepts the plan, says Gary Kaplan of Fried Frank Harris Shriver & Jacobson LLP.
One of the benefits of using Section 363 of the Bankruptcy Code as a tool to implement an asset sale is that the statute was designed to be extremely broad in scope. Accordingly, a debtor or trustee in bankruptcy can use the statute to sell any and all property of the bankruptcy estate — free and clear of liens, claims and interests, says Neil Herman of Morgan Lewis & Bockius LLP.