Bankruptcy

  • March 24, 2017

    BCBG Fights Founder, Wife Over Job Termination In Ch. 11

    Bankrupt women's apparel company BCBG Max Azria Group Inc. on Friday said it should be permitted to avoid making an approximately $7 million golden parachute payment to Lubov Azria, the company’s former chief creative officer and wife of founder Max Azria, calling it a “sound exercise of business judgment.”

  • March 24, 2017

    IRS, US Trustee Object To Fees In Wyly Bankruptcy

    The Internal Revenue Service and a U.S.-appointed trustee objected on Thursday to hundreds of thousands of dollars in fees requested by lawyers and consultants for time spent on Caroline Dee Wyly’s bankruptcy case, saying the work was done in bad faith and didn’t add to the value of the estate.

  • March 24, 2017

    Dewey Staffer Says She Didn't Think She Committed Crimes

    A former Dewey & LeBoeuf LLP finance staffer told a Manhattan federal jury Friday she did not think she was committing a crime by making improper accounting entries into the law firm’s books, and confirmed that former Executive Director Stephen DiCarmine never told her to do anything inappropriate.

  • March 24, 2017

    'Housewives' Star's Ex-Atty Urges Stay Of Malpractice Action

    The former attorney of a one-time incarcerated star of “The Real Housewives of New Jersey” on Friday tried again to put the brakes on her state court malpractice action, urging a federal judge to stay a bankruptcy judge’s order allowing the case to proceed while he appeals that ruling.

  • March 24, 2017

    SunEdison Lenders Fight To Ax Fraudulent Transfer Suit

    Secured SunEdison Inc. lenders fought back Thursday against the solar company's unsecured creditors’ allegations that the lenders benefited from hundreds of millions of dollars in fraudulent transfers used to mask SunEdison's deteriorating finances, calling the claims rooted in dismay over the prospect of getting no return.

  • March 24, 2017

    Samson, Magnum Hunter End $17M Claims Fight In Del. Ch. 11

    Samson Resources Co. withdrew more than $16.8 million in oil and gas well claims against a bankruptcy successor to Magnum Hunter Resources late Thursday, citing an earlier settlement deal to wind up loose ends trailing both companies' confirmed Chapter 11 reorganization plans.

  • March 24, 2017

    Bankrupt Studio Gets Nod For $4M Deal With Ex-Execs

    A California bankruptcy judge Thursday approved a $4 million settlement between Oscar-winning special effects studio Rhythm & Hues Studios Inc. and its former directors and executives in its Chapter 11 bankruptcy.

  • March 24, 2017

    Paragon Investors Rip Del. Ch. 11 Disclosure, Projections

    Paragon Offshore PLC’s stockholders on Friday attacked what they characterized as manipulated projections of the bankrupt Houston company’s stability, outlook and ability to pay stockholder claims, and urged the U.S. trustee's office to form an official equity committee.

  • March 24, 2017

    Asbestos Firms Shed Racketeering Suits For Lack Of Ill. Ties

    Industrial manufacturer John Crane Inc. cannot pursue claims against asbestos plaintiffs firms Simon Greenstone Panatier Bartlett PC and Shein Law Center Ltd. for allegedly providing false histories for clients during asbestos litigation, as the firms lack sufficient ties to Illinois, according to parallel rulings in federal court Thursday.

  • March 24, 2017

    Cosi Files New Creditor-Backed Reorganization Plan

    Bankrupt fast-casual restaurant chain Cosi Inc. filed a new Chapter 11 reorganization plan backed by its official committee of unsecured creditors on Thursday in Massachusetts bankruptcy court.

  • March 24, 2017

    Fed, FDIC Seek Improvements In Northern Trust’s Living Will

    Federal banking regulators on Friday said that plans submitted by 16 U.S. regional banks outlining how they could be taken apart through bankruptcy were largely credible, but said that Northern Trust Corp. did not sufficiently address questions about how its international units could be taken apart.

  • March 23, 2017

    Justices Avoid Upending Ch. 11 Creditor Payment Practices

    With its ruling that so-called structured dismissals to end Chapter 11 cases cannot sidestep the Bankruptcy Code's creditor priority scheme, the U.S. Supreme Court avoided going so far as to prohibit deviation from the scheme at any time during a case, instead making a carefully tailored decision that doesn't disturb routine practices, experts say.

  • March 23, 2017

    Cozen Continues Miami Growth With 3 Commercial Litigators

    Cozen O'Connor has continued its rapid growth in Miami, announcing the addition of three commercial litigators it says will contribute in a variety of areas, including contracts, antitrust cases, bankruptcy fraud, real estate and construction matters, and litigation involving government entities.

  • March 23, 2017

    Dewey Finance Staffer Says She Cooked The Books

    A former Dewey & LeBoeuf LLP finance department staffer told a Manhattan jury Thursday she improperly reversed accounting entries on the law firm’s books and lied to partners and others who questioned the suspect treatments.

  • March 23, 2017

    California Proton's Operator Opposes $32M DIP Loan

    The company that operates a cancer treatment facility for bankrupt California Proton Treatment Center LLC objected Thursday to the debtor’s proposed, $32 million post-petition loan on the grounds it subordinates the operator’s purported interest in the facility.

  • March 23, 2017

    Jury Hands Metal Recycler $16M Loss In Bankruptcy Dispute

    A Pennsylvania federal judge on Thursday ordered shareholders of a bankrupt auto parts recycler to pay $16 million to a South African metals refiner, after a jury found the recycler should not have made certain distributions to the owners as the company approached insolvency.

  • March 23, 2017

    Court Says Netflix Must Pay Jones Day Rates In Dispute

    A New York bankruptcy judge on Wednesday ordered Netflix to pay an $800,000 legal bill for Relativity Media arising from a dispute over Netflix's efforts to stream two Relativity movies before they hit theaters, and also rebuked the streaming pioneer for its tactics regarding the bills for Jones Day fees.

  • March 23, 2017

    Bank Seeks $2.2M Fee For $575M Performance Sports Sale

    Investment bank Centerview Partners LLC on Wednesday asked a Delaware bankruptcy court to sign off on a $2.2 million final fee for its work on Performance Sports Group Ltd.'s $575 million Chapter 11 sale last month.

  • March 23, 2017

    Judge Wary Of More Leeway To Sue Implant Sciences Lenders

    A bid by a stockholders committee to expand its limited standing to sue bankrupt Implant Sciences Corp.'s lenders could send ripples well beyond the already-sold explosive detector maker’s case, a Delaware bankruptcy judge said Thursday.

  • March 23, 2017

    FINRA, DTC Accused Of Sending $8M To Wrong Investors

    A former investor in bankrupt Bind Therapeutics Inc. asked a Delaware federal court on Thursday to halt distributions to the defunct company's shareholders, saying errors by securities clearinghouse the Depository Trust Co. and regulator the Financial Industry Regulatory Authority resulted in the first $8 million payment going to the wrong people.

Expert Analysis

  • Why Tribes Should Be Careful With Bankruptcy Practices

    Lynne B. Xerras

    In Casino Caribbean v. Money Centers last month, the U.S. Bankruptcy Court for the District of Delaware ruled that tribal sovereign immunity is not abrogated by Section 106 of the Bankruptcy Code. This decision makes it clear that many bankruptcy courts do not consider Native American tribes to be "governmental units," say attorneys with Holland & Knight LLP.

  • Google, NASA, Planes And A Stronger Legal Team

    Nicholas Cheolas

    Why did minor mechanical issues bring down two airplanes, while a catastrophic engine explosion did not bring down a third? The answers lie, in part, in research conducted by NASA in the wake of those crashes and, more recently, by Google. And those answers can help organizations build better teams to meet today’s legal industry challenges, says Nicholas Cheolas of Zelle LLP.

  • Acquiring Midstream Assets And Gas Agreements: Part 2

    Greg Krafka

    Because the value of natural gas gathering systems, processing plants and related midstream assets depends on fees to be paid under associated gas gathering and processing agreements, terms and conditions of these agreements — with respect to acreage dedication, well connections, covenants running with the land, and other matters — must be scrutinized before asset purchases, say Greg Krafka and Jim Strawn of Winstead PC.

  • 10 Tips For Better Legal Negotiations

    Marc J. Siegel

    Like everything else, the art of negotiation starts by having a conversation. It’s about being respectful, finding common ground, knowing what you want and, most importantly, listening. A conversation between two lawyers can be complicated at best, but by employing a few techniques and tactics, it doesn’t have to be that way, says Marc Siegel of Siegel & Dolan Ltd.

  • Monthly Column

    Gray Matters: Decision Error

    Gray Matters

    Lawyers make hundreds of decisions during the course of advising a client, consummating a transaction or litigating a case. In this new column, dispute resolution experts Bob Creo and Selina Shultz explore the theory, science and practical aspects of how decisions are made in the legal community.

  • Acquiring Midstream Assets And Gas Agreements: Part 1

    Greg Krafka

    In the acquisition of natural gas gathering systems, processing plants and related midstream assets, a primary focus of legal due diligence will be the gas gathering and processing agreements associated with these assets. Terms and conditions governing service levels, fees, environmental costs, termination and other issues must be carefully reviewed before purchase, say Greg Krafka and Jim Strawn of Winstead PC.

  • Law Schools And Law Firms: Seeking Common Ground

    Randy Gordon

    What we don’t know is whether the teaching and practice of law are undergoing massive structural changes or we’re still digging out from the worst economic collapse since the Depression. But what we do know is that the missions of the most forward-looking law schools and law firms are converging in ways that were unimaginable 10 years ago, says Randy Gordon, a partner at Gardere Wynne Sewell LLP and executive professor of law at Te... (continued)

  • How Lenders Can Minimize Risks Of Borrowing Base Fraud

    Nathan Novak

    Major financial institutions lend millions of dollars to companies every day based on little more than their borrowers’ own word as to the existence and value of their collateral — referred to as a “borrowing base.” Such an arrangement, if not properly managed, presents significant opportunity for fraud, says Nathan Novak of Orrick Herrington & Sutcliffe LLP.

  • Not From Around Here? Trying A Case As An Out-Of-Towner

    William Oxley

    The importance of authenticity is magnified when trying a case outside your home jurisdiction. While using references to local landmarks or history can help make arguments relatable, adopting local expressions or style in an attempt to ingratiate oneself with the judge and jury almost always backfires, say William Oxley and Meghan Rohling Kelly of Dechert LLP.

  • How The Gordmans Stores Bankruptcy Will Affect Landlords

    Michael Robert Carney

    It is important that the Gordmans department store chain filed for Chapter 11 bankruptcy in Nebraska because the Eighth Circuit has developed specific case law related to Gordmans' obligation to pay "stub rent," says Michael Robert Carney of QAV Capital LLC.