Bankruptcy

  • February 28, 2017

    UBS Units Beat Lingering Suit Over Brokers' Enron Knowledge

    A Texas federal judge on Tuesday killed a proposed class action aimed at UBS AG units over their alleged involvement in Enron’s infamous fraud scheme, ending a 15-year battle over whether ex-employees and other investors should have been warned their stock options and equities were about to go bust.

  • February 28, 2017

    GM, Vehicle Buyers File Competing Takes On 2nd Circ. Ruling

    General Motors LLC and a consolidated group of GM car buyers on Monday began attempts to sway a New York bankruptcy court on how it should interpret a Second Circuit ruling last summer that resurrected previously barred liability claims against the carmaker related to ignition switch defects.

  • February 28, 2017

    Nortel Creditors Seek $4M Cut To Indenture Trustee Fee Bid

    Two hedge funds that held senior notes issued by a Nortel Networks Inc. unit pushed the Delaware bankruptcy court on Tuesday to cut their indenture trustee’s roughly $8 million attorney fee request in half, arguing that Delaware Trust Co. didn’t properly discharge its duties.

  • February 28, 2017

    Canadian Pallet Maker Opens Del. Ch. 15 Bankruptcy

    Canadian supply chain logistics company Axios Logistics Solutions Inc. moved Tuesday in Delaware bankruptcy court for recognition of its status as a debtor in receivership in Canada, seeking protection from seizure of its property in the U.S. while it resolves more than $17 million in liabilities with “negligible cash resources.”

  • February 28, 2017

    Optima Resolves Creditor Objections To $212M DIP Package

    Bankrupt metal manufacturer Optima Specialty Steel Inc. told a Delaware judge Tuesday that it has resolved the objections of unsecured creditors to its proposed $212 million post-petition financing package, paving the way for the court to give final approval to the loan.

  • February 28, 2017

    Cos. Linked To $7.4M Chilean Fraud Need US Receiver: Judge

    A federal magistrate judge in Florida recommended on Tuesday that a group of companies linked to a Chilean fugitive that U.S. securities regulators say bilked investors out of $7.4 million should be put in the hands of a receiver, but one whose remit is limited to U.S. assets to avoid conflicts with a Chilean liquidator.

  • February 28, 2017

    Aeropostale Seeks To Extend Ch. 11 Plan Exclusivity Period

    Aeropostale filed a proposed order Monday that would extend the bankrupt clothing retailer’s time to file a Chapter 11 reorganization plan without competing proposals until the beginning of May.

  • February 28, 2017

    Dewey's DiCarmine Gets Star Witness's Plea Docs

    Lawyers for former Dewey & LeBoeuf LLP executive Stephen DiCarmine got their hands on documents surrounding the plea deal of the government's star witness, the firm's former finance director, as the second Dewey fraud trial remained paused Tuesday.

  • February 28, 2017

    Goodman & Nekvasil Survives DQ Bid In Life Partners Ch. 11

    A Texas bankruptcy judge Monday denied a request by class action plaintiffs in an adversary case in the Life Partners Holdings Chapter 11 to disqualify and sanction Goodman & Nekvasil PA because the firm sent out solicitation letters to Life Partners investors and allegedly lied to the court about it.

  • February 28, 2017

    Court OKs FantasyDraft's Deal With Bankrupt Fantasy Aces

    A California bankruptcy court on Monday approved a plan that will allow Fantasy Aces LP to sell its user database to competitor FantasyDraft LLC, a move that will allow more than 30,000 customers to recoup more of the $1.3 million that the bankrupt company owes its customers.

  • February 28, 2017

    Drone Camera Firm To Go Forward With Refund, IP Sale Plan

    Drone camera maker Lily Robotics Inc. will move forward with a plan to issue refunds to customers who pre-ordered its drone camera and to secure a stalking horse bid for its intellectual property after a first-day bankruptcy hearing in Delaware on Tuesday.

  • February 27, 2017

    Ex-Execs Hit SunEdison Yieldcos With Whistleblower Suits

    A pair of former SunEdison Inc. vice presidents and executives at TerraForm Power Inc. and TerraForm Global Inc. have filed whistleblower complaints in Maryland federal court, accusing the TerraForm entities and various SunEdison officers and directors of conspiring to cover up financial mismanagement that led to SunEdison’s bankruptcy.

  • February 27, 2017

    Avaya Rips 49ers' Performance In Bid To Nix Suite Contract

    Telecommunications provider Avaya Holdings Inc. is seeking to back out of a 10-year commitment to license a San Francisco 49ers stadium suite, highlighting the team’s recent losing seasons in a bankruptcy court filing Friday that says the $350,000 annual payments are an unnecessary burden.

  • February 27, 2017

    Contract Holders Oppose Eastern Outfitter's Sale Timeline

    Leaseholders and insurance providers of bankrupt sporting goods retailer Eastern Outfitters LLC objected Monday in Delaware to the company’s proposed contract assumption procedures, which they say will not give them enough time to assess the new contract holders after a planned sale.

  • February 27, 2017

    EFH Tells Bankruptcy Judge It Owes IRS $47.6M, Not $7.8B

    Energy Future Holdings Corp. on Friday urged a Delaware bankruptcy judge to winnow the Internal Revenue Service's “proofs of claims” to $47.6 million, arguing that if hit with the purportedly inaccurate $7.8 billion bill for unpaid taxes and penalties, the entire hard-fought Chapter 11 plan could be compromised.

  • February 27, 2017

    Bankruptcy Pro's Move Reshapes 2 Miami Boutique Firms

    A veteran South Florida bankruptcy attorney has left the firm she founded to join forces with a real estate and construction practice and form a new expanded boutique operation in Miami.

  • February 27, 2017

    Drone Camera Developer Lands In Ch. 11 With $37M In Debt

    A California firm that developed a flying drone camera platform hit Chapter 11 on Monday in Delaware after it failed to bring its device to market, with plans to pay refunds to its customers that preordered the machines through an intellectual property auction.

  • February 27, 2017

    GM Defective Tire Suit Remains Stayed After Appeal Bid Fails

    A New York federal judge declined to hear an appeal of an order staying a defective tire product liability claim brought by a couple against General Motors in Georgia state court, saying a bankruptcy court properly retained jurisdiction to interpret and enforce GM's bankruptcy sale and apply a litigation stay.

  • February 27, 2017

    Dewey Cooperator's Sweetened Deal Prompts Subpoena Fight

    Attorneys for two former top executives of Dewey & LeBoeuf LLP and prosecutors for the Manhattan district attorney’s office traded barbs over the weekend about a defense subpoena for information regarding a sweetened deal for the key cooperator in the ongoing criminal saga.

  • February 27, 2017

    Gawker's Founder Asks For Dismissal Of His Ch. 11 Case

    Gawker Media LLC founder Nicholas Denton on Friday asked a New York bankruptcy court to dismiss his Chapter 11 case, saying that his debts either have been resolved through settlements or can be covered with the cash he received from his liquidated shares in Gawker.

Expert Analysis

  • How 401(k) Benefits Can Attract Millennial Legal Talent

    Nathan Fisher

    If today’s law firms are willing to rethink their perceptions of millennials, they may see greater success in attracting and retaining new talent by giving the younger generation the kind of retirement planning benefits they want and need, says Nathan Fisher of Fisher Investments.

  • Why 2017 May Be A Steadier Year For Oil And Gas Firms

    Mark Chehi

    Oil and natural gas markets hit bottom last year, with oil prices 75 percent lower, and gas prices 80 percent lower, than at their 2014 peaks. Oil and gas firms responded with job and capital expense cuts, and many faced restructuring. But steady price growth during the past year has led to more stability, say attorneys from Skadden Arps Slate Meagher & Flom LLP.

  • What Lawyers Can Learn From Kellyanne Conway

    Michelle Samuels

    Presidential adviser Kellyanne Conway's TV appearances provide some examples of what lawyers should and shouldn't do when speaking to the media, says Michelle Samuels, a vice president of public relations at Jaffe.

  • Financial Services In The 1st Month Of Trump Presidency

    Matthew Cutts

    In the first 30 days of his administration, President Donald Trump issued more than two dozen executive orders, memoranda and proclamations, several of which significantly impact the financial services industry. In addition, policymakers are turning their time and attention to reforming the nation’s financial services laws, with a “Choice Act 2.0” likely to be introduced soon, say Matthew Cutts and James Sivon of Squire Patton Boggs LLP.

  • The Mistakes Lawyers Make When Copying And Pasting

    Robert D. Lang

    We all recognize that cutting or copying text from earlier works and pasting it into new documents saves attorneys time. However, with this increase in speed comes an increased risk of making, or not catching, errors, says Robert Lang of D’Amato & Lynch LLP.

  • Opinion

    Calif. Court Gets Automatic Funding Disclosure Right

    Matthew D. Harrison

    Detractors of litigation funding have strained to characterize a recent decision from a California federal court as significant headway in their crusade against the litigation funding industry. However, in truth, this is a victory for both the industry and those in need of capital to bring meritorious claims against wrongdoers in an often prohibitively expensive legal system, say Matthew Harrison and Priya G. Pai of Bentham IMF.

  • Benefits Of Bringing Fraudulent Conveyance Actions In NY

    Dale A. Schreiber

    In the forthcoming Trumpian era of expected higher inflation and interest rates, insolvencies of highly leveraged public companies and large privately held concerns will likely increase exponentially. In scenarios involving limited liability entities organized or with principal places of business in New York, the New York Fraudulent Conveyance Act offers a uniquely creditor-friendly tool, say Dale Schreiber and Margaret Dale of Pro... (continued)

  • In Retrospect

    Relearning The Lessons Of Korematsu's Case

    Randy Maniloff

    Fred Korematsu’s U.S. Supreme Court case challenging President Franklin Roosevelt’s executive order that led to the incarceration of approximately 120,000 people of Japanese ancestry may sound like ancient history. However, Feb. 19 marks the 75th anniversary of the order's signing, and that it’s celebrating its diamond anniversary now is breathtaking timing, says Randy Maniloff of White and Williams LLP.

  • Health Republic's Curious Liquidation: Part 8

    James Veach

    Although Health Republic's liquidation is a matter of considerable public interest, the process has been far from transparent. Last fall, the National Association of Insurance Commissioners' discussion of consumer operated and oriented plans was closed to the public, in potential violation of the NAIC's policy statement on open meetings, says James Veach of Mound Cotton Wollan & Greengrass LLP.

  • How A General Counsel Should Think About AI: Part 2

    Bruce J. Heiman

    General counsels face the challenging task of understanding how companies can navigate the rules surrounding uses of artificial intelligence. To get smart on AI, general counsels must ask the right questions about areas such as human resources, intellectual property, liability and insurance, say Bruce Heiman and Elana Reman of K&L Gates LLP.