Accounting firms EisnerAmper LLP and Grant Thornton LLP are one step closer to killing claims against them in a pair of suits by Louisiana pension funds alleging they were complicit in fraud by Fletcher Asset Management that cost them $100 million, after a federal judge found Tuesday the funds skipped a step in filing their claims.
Auto parts conglomerate Speedstar Holding Corp. and its affiliate debtors on Tuesday filed an amended prepackaged plan to reorganize and emerge from Chapter 11 proceedings by swapping $224 million in first-lien lender claims for common stock in the new company and $60 million in unsecured convertible notes.
Derivative lawsuits accusing Resource Capital Corp.'s directors of mishandling a Puerto Rico hotel loan portfolio that prompted a $41 million write-down in August 2015 continued to mount Wednesday, as a shareholder of the real estate investment trust filed the fourth case of its kind in New York.
Unsecured creditors of bankrupt clothing retailer The Wet Seal LLC warned on Wednesday that the company’s Chapter 11 appears headed for insolvency and urged a Delaware judge to curb payments of interest and principal to senior creditors pending resolution of cash concerns.
Recently defunct women's clothing retailer The Limited Stores Co. LLC told the Delaware bankruptcy court late Tuesday that a unit of private equity firm Sycamore Partners, which was the stalking horse that set the bidding floor, won a competitive auction for its intellectual property and e-commerce business line.
Bankrupt oil fleet operator Toisa Ltd. announced Tuesday that, through a negotiated court order, it has regained control of a tanker vessel that had been seized by secured lender Citibank NA, allowing operations to continue in full while the debtor puts together a Chapter 11 restructuring plan.
Quiksilver Inc. and 26 former employees received a Delaware federal bankruptcy judge’s approval Tuesday for a long-delayed settlement in a more than $7 million worker severance pay dispute, under terms first broadly disclosed in April.
Bankrupt Chaparral Energy Inc. filed suit in Delaware bankruptcy court Tuesday to force Merit Energy Co. LLC into selling its interests in a jointly owned stretch of pipe used to recover oil from depleted wells, saying the pipeline’s sale could bolster its Chapter 11 restructuring but that potential purchasers only offered to buy the pipeline in its entirety.
California port services company Outer Harbor Terminal LLC must face a $13 million-plus bankruptcy court damages claim by global shipping company K-Line for abruptly breaking a contract at the Port of Oakland, California, a Delaware judge ruled late Tuesday.
A New York bankruptcy judge on Tuesday authorized General Motors’ general unsecured creditors’ trust to use nearly $10 million of distributable cash to satisfy administrative and reporting costs estimated for the 2017 calendar year, and extended the life of the trust through the first quarter of 2018.
A farming co-op hit back against MF Global Holding Ltd.’s demand for $1.7 million over derivatives trades that predate the firm's massive 2011 bankruptcy, saying on Monday that MF Global failed to preserve those claims in its Chapter 11 plan and therefore has no right to pursue them.
A New York federal judge on Tuesday sentenced a fuel company employee who pled guilty to conspiring to commit a $30 million bank fraud to time served, backing off her stated intention to have him serve 90 days in a halfway house because he might meet bad people in there.
The show might go on, now that a New York bankruptcy court has signed off on defunct nonprofit Big Apple Circus Ltd.’s $1.3 million sale to a Florida-based investment firm that plans to continue Big Apple’s iconic circus shows.
International Shipholding Corp. reached a resolution Tuesday to move forward with its Chapter 11 reorganization plan to restructure more than $200 million in debt after settling with a secured lender whose objection stretched a confirmation hearing out for three days.
The Sixth Circuit on Tuesday affirmed an Ohio judge’s decision dismissing a proposed shareholder suit over an alleged “pump-and-dump” scheme supposedly run by a group of private equity funds and executives of bankrupt EveryWare Global, agreeing the investors couldn’t show the executives had acted intentionally.
Bankrupt ATopTech Inc.’s $1 million protection plan for a prospective buyer’s $8 million stalking horse bid was nixed in Delaware federal court on Tuesday, with a judge terming the company's 12.5 percent fee too high for the “low-ball” offer.
A Delaware bankruptcy judge allowed Xtera Communications Inc. to convert its case to a Chapter 7 liquidation after its canceled auction and $10.5 million sale to its post-petition lender didn’t leave the estate with enough money to finish its case with a Chapter 11 plan.
Constellation Enterprises LLC has urged a Delaware bankruptcy judge not to set a bar date for claims, saying it would be a waste of resources as the metal and plastic fabricator awaits the U.S. Supreme Court’s decision on structured dismissals in Chapter 11 cases.
Gawker Media LLC told a Manhattan bankruptcy judge Friday that it should not have to set aside $2.5 million in potential liabilities to the IRS or $1.2 million for New York City tax collectors, arguing that it has paid the federal government in full and owes the city a maximum of $9,250.
Reorg Research Inc. is appealing a New York state judge's recent ruling that Murray Energy Corp. can obtain confidential sources used by the company to report on the coal giant's debt restructuring efforts because it wasn't a journalism outlet eligible for protection by the state's shield law.
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.
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)
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.
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.
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.
In the seventh part of this series on Health Republic's liquidation process, James Veach of Mound Cotton Wollan & Greengrass LLP summarizes his recent attempt to appear as a friend of the court overseeing the liquidation.
Though the Trump administration has yet to make an official statement regarding artificial intelligence, support for AI is consistent with its expressed desire to promote American business. As such, general counsel will inevitably have to navigate what big data and AI mean for compliance with current and future laws and regulations, say Bruce Heiman and Elana Reman of K&L Gates LLP.
Investments in “unrestricted subsidiaries” are an exception to investment covenants and are being increasingly used in restructuring a company’s capital structure. Before purchasing any debt, distressed investors need to be mindful of what unrestricted subsidiaries are and how they may affect the overall credit of a company or debt recoveries, say attorneys with Chapman and Cutler LLP.
Lawyers are likely turning to alcohol to lessen stress and anxiety, to socialize, and even to sleep better. Unfortunately, many are unaware that their nightly pour could be causing or exacerbating the anxiety that is plaguing the legal profession, says Jennifer Gibbs of Zelle LLP.
A New York federal court's recent ruling in U.S. Bank v. T.D. Bank serves as a good reminder that lenders should carefully consider the interplay between loan documents in order to ensure they correctly represent the parties' intent. Under applicable state law, the rule of explicitness may apply to intercreditor disputes outside of bankruptcy, not just to disputes within a bankruptcy proceeding, say attorneys with King & Spalding LLP.