Bankruptcy

  • July 27, 2017

    National Events Creditor Nabs Remaining Assets, Ch. 7 Looms

    The messy bankruptcy of ticket reseller and alleged Ponzi scheme vehicle National Events Holdings LLC entered a new phase Thursday, as a New York bankruptcy court finally let its largest creditor collect on the company’s $730,000 in remaining assets, opening the door for a Chapter 7 trustee to take over.

  • July 27, 2017

    Payless Shoes To Walk Out Of Ch. 11 After Plan Approval

    A Missouri bankruptcy judge filed an order of approval Wednesday giving discount shoe retailer Payless ShoeSource Inc. the green light to execute its proposed reorganization plan and emerge from Chapter 11 with its own discount on nearly $850 billion in prepetition funded debt, shaved down to just over $400 billion.

  • July 27, 2017

    Millennium Labs Judge Grills Sides On 3rd-Party Releases

    The Delaware bankruptcy judge presiding over Millennium Labs' Chapter 11 case on Thursday grilled the debtor and a creditor who appealed the 2015 confirmation order over what constitutional authority allows liability releases granted without creditor consent, delving into an issue that could have far-reaching implications for bankruptcy courts’ power.

  • July 27, 2017

    U Of Puerto Rico Plan Trustee Wants Clarity On Asset Transfer

    The trustee for a benefits plan for University of Puerto Rico employees has asked the judge overseeing the territory's landmark restructuring case if it can legally transfer fund assets, as the school has demanded, after it declined to distribute $33 million in emergency early-withdrawal requests due to the island’s insolvency.

  • July 27, 2017

    Bank Can Seize $2.3M More In Defunct Co.'s Assets: 6th Circ.

    The Sixth Circuit on Thursday found that Huntington National Bank had correctly valued a foreclosed property and was entitled to $2.3 million more of the owner's assets to make up the amount it was owed.

  • July 27, 2017

    Bostwick Creditors Say Plan Administrator Is Conflicted

    The official committee of unsecured creditors in the Chapter 11 case of cancer testing firm Bostwick Laboratories Inc. objected to the company’s proposed plan, saying that the suggested plan administrator is hopelessly conflicted with Bostwick’s largest equity holder.

  • July 27, 2017

    2nd Circ. Denies Ex-Lehman Trader's Bid For $85M Bonus

    The Second Circuit on Thursday declined to make Barclays pay a former Lehman Brothers trader $85 million, saying he has already been paid most of the money the bankrupt brokerage owed him.

  • July 27, 2017

    Paragon Drilling Units Get Nod To Use Cash Collateral

    A group of offshore drilling subsidiaries of the reorganized Paragon Offshore LLC received court approval Thursday in Delaware to use cash collateral to fund their new Chapter 11 cases after reaching consensus with the United States trustee and the owners of the debtors’ drilling rigs.

  • July 26, 2017

    Essar Judge Sidelines Fight Over IRS' $9M Debt Hunt

    Facing a potentially needless fight over bankruptcy court power to block the IRS' pursuit of an Essar Steel executive for a $9 million company tax debt, a Delaware judge steered the dispute into a brief limbo Wednesday, indicating that time could resolve the issue.

  • July 26, 2017

    Ticket Co. 'Insider' Ripped For Payout Bid Amid Ponzi Claims

    The U.S. trustee and several unsecured creditors of defunct ticket reseller and suspected Ponzi scheme vehicle National Events Holdings LLC objected to a bid by the company’s minority owner to pocket proceeds from the sale of NEH’s remaining ticket inventory, saying it's unclear if the “insider” was complicit in the alleged scheme.

  • July 26, 2017

    EFH Creditor Gets More Time To Top Berkshire's $9B Sale Bid

    The Delaware bankruptcy judge presiding over Energy Future Holdings Corp.'s Chapter 11 on Wednesday gave its largest creditor more time to come up with a topping offer to Berkshire Hathaway's $9 billion sale bid, but did not extend the timeline beyond the point when Warren Buffet's conglomerate says it would walk.

  • July 26, 2017

    Katy Creditors Challenge Secured Debt Claims In Sale Deal

    The official committee of unsecured creditors in the Chapter 11 case of Katy Industries Inc. filed an adversary complaint Tuesday challenging the validity of the company's second-lien debt and its lender's purchase of Katy's assets using a credit bid on those secured claims.

  • July 26, 2017

    SquareTwo Fights Bids To Open Up Class Action Cases

    SquareTwo Financial Services Corp. on Tuesday asked a New York bankruptcy court to deny requests to lift its Chapter 11 litigation stay for a pair of suits alleging illegal debt collection practices, saying there is no money available for the plaintiffs.

  • July 26, 2017

    CEO Accuses Prosecutor Of Using Fraud To Get Guilty Plea

    The former CEO of defunct bottling company Le-Nature's Inc., who pled guilty in 2011 to defrauding banks and investors out of $660 million and was sentenced to 20 years in prison, attempted Tuesday in Pennsylvania federal court to withdraw his plea by accusing a U.S. Department of Justice lawyer of defrauding the court.

  • July 26, 2017

    Takata Delays Action On Unique Bankruptcy Funding Plans

    Air bag maker Takata told a Delaware bankruptcy judge Wednesday that it was adjourning action on an accommodation transaction designed to finance the company’s insolvency proceedings and that milestones included in the plan had been extended.

  • July 26, 2017

    GM Appeals Successor Liability Over Nonswitch Claims

    General Motors is appealing a court ruling that widened the scope of its post-bankruptcy responsibility for defects in pre-bankruptcy cars, it said Tuesday, signaling that it will fight allegations of shifting and steering defects as doggedly as it pursued last year's unsuccessful appeals to snuff out liability for a well-known ignition switch defect. 

  • July 26, 2017

    Seadrill Says Ch. 11 Postponed Until Mid-September

    Offshore driller Seadrill Ltd. on Wednesday said its lenders have agreed to give it another month and a half to negotiate a restructuring plan, postponing bankruptcy until mid-September.

  • July 25, 2017

    SunEdison Gets Nod For Ch. 11 Plan Confirmation

    SunEdison Inc. cleared a major hurdle Tuesday, securing a New York bankruptcy court’s approval of its plan to exit Chapter 11 through a series of creditor settlements after objections raised by the renewable green energy giant's shareholders and a dissenting member of its unsecured creditors' committee were overruled.

  • July 25, 2017

    GM Can't Sue Asbestos Trust For Wrongful Death Contribution

    A New York bankruptcy judge ruled Monday that General Motors LLC cannot bring suit against an asbestos trust to recover funds paid to the widow of a former employee to settle asbestos exposure claims due to a longstanding "channeling injunction" that bars exposure litigation.

  • July 25, 2017

    Caribbean Regulator Seeks Exit From Bank Raiding Suit

    A Caribbean financial regulator asked a New York bankruptcy court Monday to toss a suit alleging the regulator mismanaged the takeover of an Anguillan bank in the financial crisis' aftermath, accusing Caribbean Commercial Investment Bank Ltd. of forum shopping and saying the suit belongs in Anguillan court.

Expert Analysis

  • Fisker Takes Trustee Avoidance Powers Overseas

    Chad Dale

    The Delaware bankruptcy court's recent decision in the case of Fisker Automotive significantly expanded the ability of debtors in possession and trustees to pursue fraudulent transfer and unjust enrichment claims for transactions occurring outside the U.S., say attorneys with K&L Gates LLP.

  • Having A Chief Privacy Officer Reassures Your Firm's Clients

    Rita Heimes

    The benefits of appointing a chief privacy officer at your law firm are twofold — not only does the firm benefit from the crucial operational impact of a well-managed privacy program, but you are also demonstrating to clients how seriously you take your duties of confidentiality and competence, says Rita Heimes, research director at the International Association of Privacy Professionals.

  • Some Needed Certainty On Administrative Expense Status

    Mark Sherrill

    Debtors in bankruptcy have often used the ambiguity surrounding the meaning of the word “received” as a tool to fight against administrative expense claims. Earlier this month, the Third Circuit issued an opinion in the case of World Imports that will likely be highly influential on this matter, says Mark Sherrill of Eversheds Sutherland.

  • Weekly Column

    Innovating For Wise Juries: Discussions Before Deliberations

    Richard Lorren Jolly

    To be sure, allowing jurors to discuss evidence before final deliberations proved to be among the least popular of our recommended innovations. But empirical evidence belies these fears, say Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project.

  • 5 Questions Firms Should Ask When Evaluating Litigation AFA

    Gregory Lantier

    Law firm management should understand the client’s reasons for requesting an alternative fee arrangement, and whether approving the fee will help grow the relationship with the client, say attorneys with WilmerHale.

  • For Law Firm Offices, Business Savvy Is The New Cool

    Craig Braham

    Having embraced the notion that the right space can reinforce the right firm culture, law firm leaders have been evaluating real estate primarily for its physical properties. However, it's hard to be collegial, even in the coolest of in-house coffee bars, if your cost structure is untenable, says Craig Braham of Advocate Commercial Real Estate Advisors LLC.

  • Litigation Finance And Its Uses In Bankruptcy

    Travis Lenkner

    Litigation finance is increasingly used in the bankruptcy arena to help generate meaningful recoveries. In addition to transactions in which a finance provider purchases an interest in a high-value judgment from the estate, litigation finance can be used in a variety of bankruptcy scenarios, says Travis Lenkner of Burford Capital LLC.

  • The Best Documents In Your Case May Be From 3rd Parties

    Wyatt Dowling

    Cases are built on evidence and evidence comes from discovery. But discovery is largely a voluntary process. Serving a document subpoena on a third party can be an efficient and creative way to fill in the gaps that may exist in the productions of opposing parties, says Wyatt Dowling of Yetter Coleman LLP.

  • A Possible Pathway Out Of The Stern V. Marshall Maze

    Benjamin Feder

    PEM Entities v. Levin, which the U.S. Supreme Court will hear next term, potentially could provide the court with a coherent rationale to start resolving the uncertainty it created six years ago in Stern v. Marshall regarding the constitutional authority of bankruptcy courts, says Benjamin Feder of Kelley Drye & Warren LLP.

  • Planning A Legal Career With A Future Relocation In Mind

    Jacqueline Bokser LeFebvre

    Lawyers move to New York City to work on some of the most sophisticated work the legal market has to offer. This exposure and experience is an amazing asset and many of the skills developed will make associates very marketable in the event they consider relocating to another market. However, this isn’t always the case, says Jacqueline Bokser LeFebvre of Major Lindsey & Africa.