Bankruptcy

  • July 21, 2017

    Dynamic Files For Ch. 11 After $3.5M Hit In Arbitration

    Dynamic International Airways LLC has filed for Chapter 11 protection in North Carolina, a move that follows the confirmation of a $3.5 million arbitral award against the airline relating to a botched gig to ferry thousands of religious pilgrims between India and Saudi Arabia. 

  • July 21, 2017

    Australian Police Link Takata Air Bag To Death

    Australian police on Friday said that a faulty Takata air bag subject to a worldwide recall was likely what killed a man in a car crash last week, the first death in the country linked to the air bags.

  • July 21, 2017

    Gambling Co. Blasts 7th Circ.'s Ch. 11 Safe Harbor Ruling

    A former racetrack and casino shareholder has launched the opening salvo in a U.S. Supreme Court dispute over whether bankruptcy safe-harbor transfers to financial institutions include those where the institutions didn’t directly benefit, arguing that Congress intended to keep these transactions shielded from clawback.

  • July 21, 2017

    Puerto Rico Pension Law Spurs Bondholder Suit Against US

    A group of investors with billions at stake in Puerto Rico public pension bonds has sued the United States, saying a federally appointed oversight panel played an outsize role in the passage of recent legislation that unconstitutionally diverts their secured collateral in employer pension contributions.

  • July 21, 2017

    Watchdog Says Keystone Tube Releases Forced On Creditors

    The U.S. trustee objected Friday in Delaware to broad releases included in the Chapter 11 plan of metal fabricator Keystone Tube Co. LLC, saying the releases are being forced on unsecured creditors whose claims are impaired under the plan.

  • July 21, 2017

    Miami-Area HOA Emerges From Ch. 11 After $11M Deal

    A Florida bankruptcy judge signed off Friday on a Chapter 11 reorganization plan for a Miami Gardens homeowners association that satisfies all creditor obligations after an $11 million deal with developer D.R. Horton Inc. over allegedly shady business practices.

  • July 21, 2017

    Texas Judge Questions Arbitration For 'Indirect Customers'

    A Texas federal judge on Friday questioned whether he can decide if investors who bought shares in bankrupt biotech firm Palmaz Inc. should be considered “indirect customers” of investment firm Jefferies LLC before determining whether the matter should be arbitrated.

  • July 21, 2017

    Breitburn Equity Holders Can Press For Valuation Info

    A New York bankruptcy court granted Breitburn Energy Partners LP shareholders a look at the company’s books on Friday, a day after it granted the company another seven-week extension on its Chapter 11 plan deadline.

  • July 21, 2017

    Potential EFH Bidder Granted Emergency Deal Discovery

    The largest creditor of bankrupt Energy Future Holdings Corp. received court approval Friday in Delaware for its discovery request seeking information about the deadlines included in a $9.1 billion acquisition offer from Warren Buffet's Berkshire Hathaway ahead of a scheduling conference on the sale proposal.

  • July 21, 2017

    Miners, Travelers Reach Deal In Wage Claim Coverage Row

    Travelers Indemnity Co., formerly bankrupt Alpha Natural Resources LLC and others asked a West Virginia federal court on Friday to remand a wage suit by former coal miners, saying they've reached a settlement that belongs in state court.

  • July 20, 2017

    Objectors Force Delay Of SunEdison Ch. 11 Plan Confirmation

    Creditors looking to force bankrupt renewable energy giant SunEdison Inc. to rework its pending Chapter 11 restructuring plan won perhaps just a short term-battle Thursday, as a New York bankruptcy judge adjourned the company's plan confirmation hearing before pending objections could be fully decided, allowing arguments to proceed into next week.

  • July 20, 2017

    Paragon Puts Rig Assets In Ch. 11 For Lack Of Transfer Deal

    Two days after Paragon Offshore PLC’s Chapter 11 plan took effect, the company on Thursday put offshore drilling subsidiaries into bankruptcy after a deal with SinoEnergy Capital Management Ltd., which has a sale-leaseback arrangement connected to the assets, to transfer them to the reorganized company remained elusive.

  • July 20, 2017

    Delaware Court Weighs Israel's Reach In Car Firm's Ch. 15

    An attempt to pull the plug on a suit in Israel against former directors of a defunct electric-car maker set off sparks Thursday in a Delaware bankruptcy courtroom, with one side warning that the outcome could shake corporation law and U.S. public policy.

  • July 20, 2017

    Takata Seeks Ch. 11 Rep For Future Air Bag Injury Claimants

    Bankrupt air bag maker Takata asked a Delaware federal judge Thursday to appoint a representative to handle the claims of customers who sustain injuries from the company’s air bags after the filing of its Chapter 11 case.

  • July 20, 2017

    US Fights Essar Exec's Bid For Tax Penalty Protection

    The federal government asked a Delaware bankruptcy court Wednesday to deny a bid by the former CEO of Essar Steel Minnesota for protection from the IRS, insisting that the court lacks authority to grant the request.

  • July 20, 2017

    Vanguard Claim Row Belongs In District Court, Judge Rules

    A Tennessee federal magistrate judge sent a bankruptcy subfight connected to alleged false claims by Vanguard Healthcare LLC to federal district court on Wednesday, saying objections to the government's claims in the bankruptcy should be heard together with a False Claims Act suit filed in September.

  • July 20, 2017

    GOP Bill Would Change Bank Risk Designation Process

    A Republican bill introduced Wednesday in the U.S. House of Representatives would allow regulators to put banks under heightened supervision and capital rules based on the risks the banks pose to the financial system, rather on than their size, as is done now.

  • July 20, 2017

    NJOY Bankruptcy Converted To Ch. 7

    A Delaware bankruptcy judge agreed Wednesday to convert the Chapter 11 bankruptcy of e-cigarette maker NJOY Inc. to a Chapter 7, following a $30 million asset sale and the departure of its last remaining executive.

  • July 20, 2017

    Rising Star: Morrison & Foerster's Jennifer Marines

    Morrison & Foerster LLP’s Jennifer Marines has had a year of high-profile Chapter 11 cases, including helping Maxus Energy Corp. overcome $12 billion in liabilities and preserving 400 jobs with a quick sale in the Sungevity bankruptcy, that have won her a second year as one of the bankruptcy law practitioners under age 40 honored by Law360 as Rising Stars.

  • July 20, 2017

    Failed ACA Insurer's Suit Belongs In Claims Court, Feds Say

    The liquidator for a failed South Carolina co-op insurer formed under the Affordable Care Act should file his suit challenging a federal loan repayment demand in the U.S. Court of Federal Claims, as the suit is a request for money disguised as a call for injunctive relief, the government said Wednesday.

Expert Analysis

  • The Elephant In The Room: Advancing Women To Partnership

    Anusia Gillespie

    Despite more focus and investment, the numbers continue to show little progress in advancing women to the top tiers of firm leadership. Considering the irreversible nature of the transformation of the market for top talent, it is time to start experimenting and innovating from the core, rather than from the periphery, say Anusia Gillespie and Scott Westfahl of Harvard Law School.

  • How Midsize Law Firms Can Minimize Cybersecurity Threats

    K. Stefan Chin

    It can be challenging for midsize law firms to develop an enterprise cybersecurity program that mitigates the eminent threat of data breach and meets the regulatory and compliance requirements of the firm and its clients. This challenge becomes daunting when considering the steady rise in client audits, say K. Stefan Chin of Peckar & Abramson PC and John Sweeney of Logicforce.

  • Is Bankruptcy An Option For Ancillary Marijuana Businesses?

    Patricia Heer

    The director of the U.S. Trustee Program recently proclaimed before a congressional subcommittee that debtors with assets or income derived from marijuana may not proceed through the bankruptcy system. However, this limitation has not been addressed, let alone settled, with respect to businesses that are ancillary to marijuana cultivators and dispensaries, says Patricia Heer of Duane Morris LLP.

  • Health Republic’s Curious Liquidation: Part 12

    James Veach

    Health Republic's liquidator has stated that claimants will not be paid until Health Republic's disputed claims against and from the federal government are resolved. Policyholders and other creditors should not be told to wait through a claims adjudication process only to find that potentially barely any money may remain to pay even a small portion of approved claims, says James Veach of Mound Cotton Wollan & Greengrass LLP.

  • Turning Bust To Boom: P3 Initiatives Under PROMESA

    Richard Cooper

    Normally, investors and lenders to public-private partnerships avoid pursuing projects where the government’s ability to provide financial, operational and logistical support is subject to considerable uncertainty. But the tools provided by the Puerto Rican Oversight, Management and Economic Stability Act can help mitigate some of these risks and even facilitate future projects in Puerto Rico, say attorneys with Cleary Gottlieb Ste... (continued)

  • Weekly Column

    Innovating For Wise Juries: Matching Experts

    Stephen Susman

    In the penultimate installment of this series, Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project answer a question on many legal analysts’ minds: What if both sides’ expert witnesses sat in a hot tub discussing the case while a jury watched?

  • The Role Of Public Relations In Municipal Restructuring

    Dan Zacchei

    Debtors and creditors in municipal restructuring situations need to accept that engaging with policymakers, shaping the public narrative and mitigating misleading headlines all have a significant impact on the outcome, says Dan Zacchei of Sloane & Co.

  • Rebuttal

    The Rise Of Midsize Firms

    Ronald Shechtman

    Recently, this publication featured an op-ed in which one law firm partner contended that midsize firms will be the next casualty of the legal market, due to a supposed inability to compete with BigLaw or boutique firms for business. Though we can expect to see Am Law firms continue to lead the market in megadeals and life-or-death litigations, by all indications midsize is on the rise, says Ronald Shechtman of Pryor Cashman LLP.

  • 5 Questions To Ask Yourself Before Submitting Litigation AFA

    Gregory Lantier

    Outside counsel should be able to articulate why she is proposing an alternative fee arrangement for this matter. If the client has not requested an AFA or the case is unusually difficult to budget with accuracy, this might not be the case to propose an AFA, say attorneys with WilmerHale.

  • How Mobile Apps Can Benefit Your Practice

    Sean Cleary.jpg

    Despite the boom in mobile application development, many lawyers are still reluctant when it comes to using apps in their daily work. Attorney Sean Cleary explores the benefits and shares some recommendations for apps geared toward attorneys.