Bankruptcy

  • June 23, 2017

    $20.5M Ch. 11 Bid Approved For Molycorp Rare Earth Mine

    The nation’s largest rare earth mine took a long but tentative step back from the dead Friday after receiving Delaware bankruptcy court approval of a $20.5 million cash deal for Molycorp Minerals LLC that also covered more than $100 million of potential environmental liabilities.

  • June 23, 2017

    Stalking Horse Fight Heats Up In Joe's Crab Shack Ch. 11

    The bankrupt parent company of Joe's Crab Shack traded barbs Friday with hospitality giant Landry's Inc. over the debtors’ choice to stick with a $50 million stalking horse bid from another competitor instead of accepting a $55 million offer from Landry’s ahead of a proposed Chapter 11 auction.

  • June 23, 2017

    Judge Denies Implant Sciences Investors A Solicitation Agent

    A request from shareholders of bomb detection hardware maker Implant Sciences to retain a solicitation agent for the company’s proposed Chapter 11 plan failed to receive court approval Friday in Delaware because the court determined the services were unnecessary.

  • June 23, 2017

    Bankrupt Hospital Laundry Co.'s $125M Sale To KKR OK'd

    A New York bankruptcy judge on Friday approved the $125 million sale of Angelica Corp. to a KKR & Co. LP affiliate, saying he was satisfied the medical laundry and linen management company had fielded the best offer to continue as a going concern when it emerges from Chapter 11.

  • June 23, 2017

    Bankrupt BCBG Seeks Go-Ahead For $131M Asset Sale

    BCBG Max Azria Group LLC asked a New York bankruptcy court Friday to approve a $131 million sale of intellectual property, stores and other assets, with a hearing for the clothing retailer's Chapter 11 plan slated for next month.

  • June 23, 2017

    Tidewater Confirmation Hearing To Be Delayed 3 Weeks

    A request by a recently formed committee of equity security holders to delay the confirmation hearing in the Chapter 11 case of offshore oil services firm Tidewater Inc. gained court approval Friday in Delaware, allowing the committee nearly three weeks of extra time to do its work.

  • June 23, 2017

    Texas Court Nixes $31M Suit Against Nursing Home Execs

    A Texas state appellate court has ruled that a lower court doesn’t have jurisdiction to handle a suit brought by a nursing home patient's daughter in which she tried to force the nursing home’s executives to pay a $31 million judgment she obtained against the now-bankrupt company that operated the facility.

  • June 23, 2017

    Texas Justices Say Noble Can't Ditch $63M Cleanup Indemnity

    The Texas Supreme Court on Friday held Noble Energy Inc. must indemnify ConocoPhillips Co. for $63 million in environmental cleanup costs under an indemnity agreement that wasn’t disclosed when Noble’s predecessor bought oil and gas assets during a Chapter 11 bankruptcy.

  • June 22, 2017

    Defunct Scrap Metal Co. Committed No Fraud, Court Affirms

    An Illinois federal judge on Wednesday largely affirmed a bankruptcy court's ruling that officers of defunct Chicago-based metal recycling company Keywell LLC broke no laws on the path to declaring bankruptcy, but did reverse the lower court’s ruling forcing Keywell to equitably subordinate loans made to it when the company was on the brink of going under.

  • June 22, 2017

    Puda Coal Investor Wants Receiver After $228M Judgment

    A shareholder in Puda Coal Inc. asked the Delaware Chancery Court on Thursday to appoint a receiver for the defunct China-based company that was recently hit with a $228 million judgment in New York federal court, arguing the company has a history of disregarding court orders.

  • June 22, 2017

    Oft-Punished Ill. Atty Can't Dodge Sanctions In Bankruptcy

    A Chicago attorney who racked up more than $180,000 in sanctions for frivolous filings and appeals in a protracted pursuit of a daycare chain can’t discharge his sanction debt in bankruptcy court, an Illinois federal judge ruled Thursday.

  • June 22, 2017

    Implant Sciences, Watchdog Protest Bid For Consultant

    Both the Implant Sciences bankruptcy estate and the U.S. Trustee’s Office balked Thursday at the official equity committee’s bid to hire a consultant as its own solicitation agent for the bomb detection firm’s Chapter 11 plan, a measure the debtor and watchdog argue is unreasonable.

  • June 22, 2017

    Insurer Ordered To Pay MF Global Almost $1M In Attys' Fees

    A New York bankruptcy judge found Thursday that former MF Global excess insurer Allied World Assurance Co. Ltd. owes the defunct company $926,000 in attorneys' fees over Allied’s failure to get court permission before filing an action to arbitrate a contract dispute in Bermuda.

  • June 22, 2017

    DOL Flags Optima Ch. 11 For ERISA Liability Releases

    Optima Specialty Steel Inc.’s Chapter 11 plan drew an objection Thursday from the U.S. Department of Labor, based on agency findings that some terms of the plan violate or could violate the Employee Retirement Income Security Act.

  • June 22, 2017

    Tidewater Balks At Shareholder Bid To Delay Ch. 11 Consent

    Offshore marine services company Tidewater Inc. on Wednesday asked the Delaware bankruptcy court to deny a newly formed official equity holders committee’s request to adjourn a June 28 plan confirmation hearing, saying it's an unnecessary delay that could spook its foreign creditors.

  • June 22, 2017

    Sears Canada To Close 59 Stores In Monitored Restructuring

    Sears Canada Inc. announced Thursday that it has obtained protections under Canadian law that will allow it to restructure its ailing business, with the retailer gaining relief from creditors but also saying it will close 59 stores and lay off 2,900 workers.

  • June 22, 2017

    Molycorp Trustee Looks For Approval Of $20.5M Buyout Bid

    Pointing to an auction result 17 times higher than the minimum cash offer, a trustee for bankrupt Molycorp Minerals LLC is urging a Delaware judge to approve the rare earth mine site’s $20.5 million sale to an investor group and set aside remaining objections.

  • June 22, 2017

    Puerto Rico Court Shouldn't Hear Tax Row, Stakeholders Say

    The board overseeing Puerto Rico’s financial restructuring Wednesday united with bondholders and retirees to oppose moving a key dispute over sales tax revenue from federal court to the territory’s Supreme Court.

  • June 22, 2017

    MIG To Pursue Wind-Down After Court OKs $72M Asset Sale

    Bankrupt telecommunications holding company MIG LLC on Thursday received court approval in Delaware for a private asset sale, with the debtor set to receive $72 million in cash in exchange for its assets and the equity of related debtor ITC Cellular LLC.

  • June 22, 2017

    Acting Comptroller Blasts CFPB At Senate Hearing

    The acting head of the Office of the Comptroller of the Currency said on Thursday that the Consumer Financial Protection Bureau was not providing sufficient oversight of the smaller banks that it regulates.

Expert Analysis

  • Opinion

    Justice Kennedy's Moderating Influence On The High Court

    Nan Aron

    The guessing game around Justice Anthony Kennedy’s possible retirement is reaching a crescendo. Yet the speculation does more than fuel bookmakers’ odds. It draws attention to his pivotal role as the court’s swing vote, says Nan Aron, president of Alliance for Justice.

  • Why Likes And Retweets Are Worth Protecting In Bankruptcy

    Victoria Cioppettini

    Bankruptcy counsel armed with knowledge about how to leverage the potentially lucrative asset of a company’s user-generated content — testimonials, reviews, likes, retweets, shares and other customer-driven communications — will be able to maximize the value of the company, defend litigation without spoliation of evidence, and help the corporation achieve an orderly reorganization, say Victoria Cioppettini and Susan Usatine of Cole Schotz PC.

  • Weekly Column

    Innovating For Wise Juries: Juror-Posed Questions

    Roy Futterman

    One way to combat juror confusion and boredom is to allow jurors to ask witnesses questions. No federal evidentiary or court rule prohibits it, and every federal circuit court to address the practice has held it permissible, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.

  • What Lenders Must Know About The FSMA: Part 2

    Breia Schleuss

    In the concluding part of this primer on the Food Safety Modernization Act, Breia Schleuss and Rachael Dettmann Spiegel of Faegre Baker Daniels LLP discuss the FSMA’s intentional adulteration rule, foreign supplier verification program and produce safety rule, and how they may affect secured lenders.

  • What Lenders Must Know About The FSMA: Part 1

    Breia Schleuss

    In the first part of this two-part series offering practical advice for lenders looking to understand the Food Safety Modernization Act, Breia Schleuss and Rachael Dettmann Spiegel of Faegre Baker Daniels LLP analyze the components addressing preventive controls for human and animal food and sanitary transportation.

  • 6 Things Every Accounts Receivable Buyer Should Know

    Massimo Capretta

    Over the past several years, nonrecourse receivables financing has been embraced by many major financial institutions and nonbank investors in the U.S. market. Attorneys with Mayer Brown LLP outline some of the legal elements any prospective purchaser should be aware of before a purchase.

  • Tips For Complying With ABA’s New Encryption Guidance

    Nick Holda

    Last month, the American Bar Association published revised guidance regarding an attorney’s duty to protect sensitive client material in light of recent high-profile hacks. The first step in compliance is understanding how your data is being stored and accessed. There are three key questions you should ask your firm’s information technology staff and/or external solution vendors, says Nick Holda of PreVeil.

  • A Closer Look At Midland Funding V. Johnson

    Phoebe Winder

    The U.S. Supreme Court's ruling in Midland Funding v. Johnson is certainly a win for creditors — especially those that purchase distressed debt and participate in bankruptcy proceedings. Yet, a closer analysis of the majority opinion reveals a number of issues meriting careful consideration, say attorneys with K&L Gates LLP.

  • Puerto Rico Fiscal Reform: The End Of The Beginning

    Bradley Wendt

    Puerto Rico's recent petition for court protection created the largest municipal bankruptcy in U.S. history. Here, Bradley Wendt of Charles River Associates reviews the legislative process leading to the filing for court protection and analyzes the dominant debt restructuring issues being considered by the court and stakeholders.

  • Weekly Column

    Innovating For Wise Juries: Preliminary Instructions

    Richard Lorren Jolly

    One of the easiest ways to improve civil jury trials is to give juries substantive instructions on the law at the beginning of the trial rather than at its conclusion. It is also one of the most popular proposals we are recommending, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.