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Bankruptcy

  • June 22, 2018

    Claire's Revises Ch. 11 Bid Scheme After Criticism

    Under fire for purported shortcomings, irregularities and conflicts in its initial Delaware Chapter 11 plan, jewelry and accessories retailer Claire’s Inc. secured approval Friday for a reworked marketing effort that a Delaware bankruptcy judge said could encourage more bidding for the $1.3 billion annual revenue business.

  • June 22, 2018

    UK Litigation Roundup: Here's What You Missed In London

    The last week has seen a group of shippers bring a commercial fraud claim against the Bank of Scotland, the head of a Syrian laminate group sue United Insurance, and a dispute involving RBS and the failed Caterham Formula One Team. Here, Law360 looks at those and other new claims in the U.K.

  • June 22, 2018

    US Trustee Opposes Nine West's Interim CEO Candidate

    The U.S. Trustee for bankrupt Nine West Holdings Inc.Thursday asked a New York bankruptcy court to turn down its request to appoint an interim CEO from the company’s restructuring firm, saying the man is disqualified by his prior Nine West ties.

  • June 22, 2018

    Mud Slung In Conflicts Suit Against Madoff Victims’ Lawyer

    Disputes erupted in a New York courtroom Friday over a conflict-of-interest suit Bernie Madoff victims brought against their lawyer Helen Chaitman, with an attorney for the victims saying Chaitman is trying to dissuade her other clients from joining the case and her firms saying the victims' counsel should be disqualified because his mom and uncle are lead plaintiffs.

  • June 22, 2018

    EFH's Presence In Allocation Fight Challenged By Elliott, UMB

    Two creditors of reorganized debtor Energy Future Holdings Corp. informed parties to the case Friday that it had appealed a decision from a Delaware judge granting the company’s estate permission to get involved in a fight over the allocation of fees associated with the Chapter 11 plan.

  • June 22, 2018

    Ampal Looks To Curb Tax Liability From $1B Egypt Gas Award

    A trustee of bankrupt Ampal-American Israel Corp. urged a New York court to preserve the value of the company’s stake in a more than $1 billion arbitral award stemming from a terminated natural gas deal with Egypt, saying the court needs to halt transactions that could impact Ampal’s eventual tax liability.

  • June 22, 2018

    Weinstein Co.'s Ch. 11 Sale Price Takes $23M Tumble

    The Weinstein Co. told a Delaware bankruptcy judge Friday that a distressed sale of the entertainment company — driven by sex-crime allegations against its co-founder — will likely yield $23 million less than the $310 million cash deal approved in court on May 8.

  • June 22, 2018

    Relativity Media Investor Accuses CEO Of $12.5M Fraud

    A hedge fund investor ramped up his lawsuit against Ryan Kavanaugh, the CEO of the twice-bankrupt Relativity Media, in an amended complaint filed in California court Thursday, upping his damages request five-fold to $12.5 million and seeking punitive damages.

  • June 21, 2018

    Quick Win Bid Denied In Aerogroup Ch. 11 Creditor Fight

    Creditors disputing the allocation of sale proceeds in the Chapter 11 case of shoe retailer Aerogroup International Inc. learned Thursday that a motion for summary judgment in the fight would be denied by a Delaware judge and informed the court of their plan for a hearing on the matter set for next week.

  • June 21, 2018

    Liberty Withdraws $1.16B Offer For 40% Of IHeartMedia

    Liberty Media has taken a much talked-about $1.16 billion offer for a 40 percent slice of iHeartMedia off the table, according to a Thursday court filing, leaving the bankrupt radio giant with no outside funding source as it seeks to cut $10 billion from its swollen balance sheet.

  • June 21, 2018

    HCR ManorCare Presents New Ch. 11 Plan with Better Deal

    Assisted living company HCR ManorCare Inc. returned to Delaware bankruptcy court Thursday to receive approval for an updated Chapter 11 plan that will increase recoveries for equity holders if the acquirer of the debtor’s assets closes a merger of its own.

  • June 21, 2018

    TransCare Trustee Pressed On $10M Suit Against Lynn Tilton

    Asked on Thursday to explain the gist of a $10 million clawback suit against Lynn Tilton and her private equity firm, Patriarch Partners LLC, counsel for the liquidating trustee of TransCare Corp. said the distressed-debt maven breached a legal duty to protect the ambulance operator from ruin.

  • June 21, 2018

    Pension, Discovery Deals Reached In Tops Markets Ch. 11

    Tops Markets LLC on Thursday received approval from a New York bankruptcy court for a settlement of a long-standing dispute over $184 million in pension liabilities at the same time it told the court it had reached an agreement with creditors in a discovery dispute.

  • June 21, 2018

    Creditors Object To $750M Lehman-Credit Suisse Deal

    Two hedge funds threw a wrench into a massive proposed derivatives settlement between Lehman Brothers Holdings Inc. and Credit Suisse AG with an objection filed on Wednesday, sharply questioning Lehman's whiplash-inducing turn from demanding $75 million to agreeing to pay $750 million in the "black box" deal.

  • June 20, 2018

    Ex-Dewey CFO Disbarred By Fraud Scheme Felony Conviction

    Former Dewey & LeBoeuf LLP chief financial officer Joel Sanders, convicted in New York state court last year on fraud and conspiracy charges, was disbarred Wednesday.

  • June 20, 2018

    Zohar Ch. 11 Director Deal Approved With Indemnity Change

    An agreement between the Zohar Funds and an independent director appointed to oversee monetization of the debtors' assets in their Ch. 11 cases received approval Wednesday when a Delaware judge said changes to the deal’s indemnity provisions were acceptable.

  • June 20, 2018

    IHeartMedia Beats US Trustee's Objection To Exec Bonuses

    A Texas bankruptcy court Tuesday approved iHeartMedia Inc.'s plan to pay a dozen of its top executives up to $25 million in bonuses for 2018, overriding an objection by the U.S. Trustee's Office.

  • June 20, 2018

    Tops Markets’ Creditors Push For Probe Of Pre-Ch. 11 Moves

    The unsecured creditors of Tops Markets LLC are set to appear in New York bankruptcy court Thursday after calling for an investigation into the bankrupt grocery chain and payments made by its previous ownership group that saddled the company with unsustainable liabilities, arguing discovery provided by the debtors is inadequate.

  • June 20, 2018

    Rennert, Ex-Attys Move To Settle Row Over $214M Verdict

    The Renco Group has reached a preliminary agreement to settle a case against its former attorneys, who it claims are to blame for an “inconsistent” jury verdict that cost the company and its billionaire owner Ira Rennert $214 million in damages.

  • June 20, 2018

    Judge OKs $13.5M BNY, JPM Settlement In $15M Debt Suit

    A federal judge in Philadelphia tentatively approved a $13.5 million settlement on Wednesday between Bank of New York Mellon Corp., JP Morgan Chase & Co. and investors who accused the banks of failing to go to bat for them when the hospital whose debt they had purchased went bankrupt.

Expert Analysis

  • Pa. Reinsurance Ruling Sets Precedent For Insolvency Cases

    Andrew Rothseid

    Pennsylvania's Commonwealth Court recently confirmed an arbitration award in favor of the Pennsylvania Insurance Commissioner against General Reinsurance Corporation. This decision rejects reinsurers' long-maintained argument that the acceleration of payment obligations by a cedent has no bearing on their own payment obligations, say Andrew Rothseid of RunOff Re.Solve LLC and Joseph Donley of Clark Hill PLC.

  • Tax Relief Under Tax Cuts And Jobs Act? Not For Debtors

    Scott Grossman

    The Tax Cuts and Jobs Act has been lauded as being generally beneficial to corporate taxpayers — but not so for corporate debtors, whose ability to reorganize and emerge under a Chapter 11 plan has been significantly and negatively impacted by the change, say Scott Grossman and Kenneth Zuckerbrot of Greenberg Traurig LLP.

  • Opinion

    BigLaw's Associate Salary Model Is A Relic Of A Bygone Era

    William Brewer

    Legal industry compensation practices are once again in the news as BigLaw firms continue to match the new high watermark of $190,000 for first-year associate salaries. The typical model of increasing associate salaries uniformly fails star associates, the firms they work for and, ultimately, the clients they serve, says William Brewer, managing partner of Brewer Attorneys & Counselors.

  • #MeToo At Law Firms And What We Can Do About It

    Beth Schroeder.JPG

    While some may say it’s ironic, it’s also embarrassing and enraging that the very industry that offers anti-harassment training, policies and counsel now finds itself the subject of #MeToo headlines. The American Bar Association recommendation that will bring about the greatest change is the call to provide alternative methods for reporting violations, says Beth Schroeder, chair of Raines Feldman LLP's labor and employment group.

  • How Will Weinstein Co. Bankruptcy Impact Accusers?

     Matthew LaGarde

    Due to the idiosyncrasies of American bankruptcy law, The Weinstein Company's recent bankruptcy filing could cause many of Harvey Weinstein’s accusers to receive pennies on the dollar relative to what they are owed under state and federal laws prohibiting workplace sexual harassment, say Matthew LaGarde and Jessica Westerman of Katz Marshall & Banks LLP.

  • Knowledge Lawyers Can Help Firms Stay Ahead Of The Curve

    Vanessa Pinto Villa

    In a profession notoriously averse to change, it should come as no surprise that there is skepticism about the value of having attorneys perform nonbillable tasks. But U.S. law firms have slowly begun to incorporate knowledge lawyers into their operations — and the trend is likely to continue, says Vanessa Pinto Villa of Hogan Lovells.

  • An Unprecedented Look Inside The FARA Unit

    Brian Fleming

    For close observers of the Foreign Agents Registration Act, the June 8 release by the U.S. Department of Justice of over 50 FARA advisory opinions was a watershed. These opinions offer an unprecedented glimpse into how the FARA Registration Unit interprets the law, say Brian Fleming and Andrew Herman of Miller & Chevalier Chtd.

  • Options For Failing Marijuana Cos. And Their Creditors

    Brett Theisen

    In the marijuana industry, there is ambiguity surrounding failing businesses because the product remains illegal under federal law. Brett Theisen of Gibbons PC identifies the credit risks associated with lending to, or working with, a marijuana business and highlights key state law solutions for both debtors and creditors.

  • Why Lawyers Shouldn't Accept Fees In Cryptocurrency: Part 2

    John Reed Stark

    The legal industry has already begun to feel the impact of anti-bribery and anti-money laundering requirements. When involved with cryptocurrency trading and remittance, law firms face more than the risk of being perceived as organizations that support money laundering practices, says John Reed Stark of John Reed Stark Consulting LLC.

  • A Growing Divide On Trademark License Rights In Bankruptcy

    Luke Barefoot

    The U.S. Supreme Court has been asked to clarify in the case of Tempnology the extent to which trademark license rights survive rejection in bankruptcy proceedings. In the meantime, licensees face continued uncertainty on their ability to use licensed trademarks following rejection, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.