Bankruptcy

  • November 21, 2017

    Trustee Objects To Releases In Aerogroup Ch. 11 Plan

    The federal bankruptcy watchdog blasted the proposed Chapter 11 plan of women’s footwear maker Aerogroup International Inc. on Tuesday, telling a Delaware bankruptcy court the plan contains overly broad third-party releases and that an accompanying disclosure statement doesn’t give enough information.

  • November 21, 2017

    Limitless Delays Ch. 11 Confirmation For Settlement OK

    Bankrupt mobile broadband provider Limitless Mobile LLC on Tuesday in Delaware delayed a confirmation hearing on its third amended Chapter 11 liquidation plan for one week in hopes of receiving approval from the federal government during that time on a settlement deal that is critical to the plan.

  • November 21, 2017

    Del. Court Nixes Committee Delay For M&G USA Sale Hearing

    A Delaware bankruptcy judge declined Tuesday to postpone a Dec. 11 sale hearing for M&G USA Corp.’s $1.7 billion Chapter 11, but delayed for 10 days a final hearing on the global plastic resin supplier’s $100 million debtor-in-possession loan.

  • November 21, 2017

    Sporting Goods Co. Gets Nod On Breakup Fee In Ch. 11 Sale

    A Delaware bankruptcy judge approved a $150,000 expense reimbursement Tuesday should bankrupt Maurice Sporting Goods Inc.’s Chapter 11 stalking horse sale stumble, despite acknowledging concerns about insufficient legal backing and problematic features.

  • November 21, 2017

    Puerto Rico Board Says Bond Insurer Can't Fight Fiscal Plan

    The federal board charged with guiding Puerto Rico through its watershed debt restructuring reasserted Tuesday that it must remain unfettered from bondholder litigation to certify fiscal budgeting plans for the territory and ultimately come up with debt readjustment proposals, tamping down complaints of alleged constitutional violations.

  • November 21, 2017

    Oncor Stakeholder Goes After NextEra For $72M Breakup Fee

    A minority shareholder in Texas utility Oncor Electric Delivery Co. LLC told the Delaware Chancery Court on Monday that NextEra Energy owes it $72 million as a breakup fee for a merger shot down by state regulators.

  • November 21, 2017

    Subpoenas 'Out The Door' In National Events Ponzi Probes

    Two parallel investigations into the $70 million National Events Ponzi scheme are humming along, as a New York bankruptcy court on Tuesday approved several motions that will tie up loose ends while the defunct ticket reseller waits on responses to a flurry of recently issued subpoenas.

  • November 21, 2017

    Talos-Stone Union Creates $2.5B Offshore Driller

    Talos Energy LLC and Stone Energy Corp., which emerged from bankruptcy earlier this year, on Tuesday said they will merge in an all-stock deal that will create an offshore drilling company with an enterprise value of $2.5 billion and an initial market capitalization of $1.9 billion.

  • November 21, 2017

    Vitamin World Approved For Store Liquidation, Sale Plans

    Bankrupt health supplement retailer Vitamin World Inc. will move ahead with plans to sell most of its stores as a going concern operation while liquidating the rest of its locations after receiving approval for the process from a Delaware federal judge on Tuesday.

  • November 20, 2017

    M&G, DIP Lender Slam Creditor Call To Sideline Sale, Loan

    Bankrupt plastics maker M&G USA Corp., its debtor-in-possession lender and top secured creditor hit back Monday at an unsecured creditor's call to delay hearings on the company's bid and sale procedures, warning that the company has no options and dwindling cash.

  • November 20, 2017

    Fiat Chrysler Botched Recall Row Survives, Returns To Calif.

    A New York bankruptcy judge ruled Friday that Fiat Chrysler can’t ditch a putative class action claiming it's liable for allegedly botched recall repairs, but sent the matter back to California federal court, saying the issues relate to events that occurred after its bankruptcy-related purchase of Old Chrysler.

  • November 20, 2017

    Sporting Goods Wholesaler Maurice Hits Ch. 11 In Del.

    Maurice Sporting Goods Inc. filed for Chapter 11 protection in Delaware on Monday with roughly $100 million in debt and private investment company Middleton Partners LLC lined up as the stalking horse bidder in a planned asset sale.

  • November 20, 2017

    Takata Can Extend Airbag Lawsuit Freeze For Individuals

    The Delaware bankruptcy judge presiding over the Takata case on Monday granted the debtors’ request to extend the freeze on lawsuits connected to its dangerously defective airbag inflators through late February for individual claims, but will revisit a stay on state enforcement actions in 30 days.

  • November 20, 2017

    RMBS Trustees Open Court Fight For $11.4B Lehman Claim

    Bankruptcy court scrutiny of Lehman Brothers’ sale of residential mortgage-backed securities in the years preceding the 2008 financial crisis got underway Monday as counsel for several RMBS trusts argued that the shuttered investment bank is responsible for $11.4 billion in damages for securitizing misrepresented loans.

  • November 20, 2017

    Embattled Exelco Should Have Ch. 11 Nixed, US Trustee Says

    A U.S. bankruptcy watchdog wants to dismiss diamond cutter Exelco NV’s Delaware bankruptcy, or possibly convert it to a Chapter 7, saying the company isn’t fulfilling major obligations it took on when it availed itself of court protection.

  • November 20, 2017

    Real Alloy Gets Interim OK On $365M Bankruptcy Loan Deals

    Bankrupt aluminum recycling firm Real Alloy Holding Inc. received interim approval Monday in Delaware for its $365 million post-petition financing plans that will make about $45 million in new money available as soon as Tuesday to help fund the company's operations.

  • November 17, 2017

    Bank Balks At GST Committee's Bid To Hire Configure

    Bankrupt GST AutoLeather Inc.’s pre- and post-petition lender Royal Bank of Canada took aim Friday at the unsecured creditors committee’s bid to hire investment banker Configure Partners LLC, arguing that the firm is not needed and much too expensive.

  • November 17, 2017

    Ch. 7 Trustee Accuses Chicago Cab Co. Of Stashing Assets

    Insiders of a now-bankrupt Chicago cab company offloaded its revenue stream to another entity in anticipation of a $26 million personal injury judgment, and also misappropriated $160 million in profits from medallion transactions using the cab company’s money, according to a new suit by a bankruptcy trustee on Thursday.

  • November 17, 2017

    Sandridge Investor Can't Sue Due To Bankruptcy: 10th Circ.

    The Tenth Circuit on Friday rejected an objector’s challenge to a $38 million settlement that ended a derivative suit against the directors of an energy company that went bankrupt while the case was pending, saying he lost the right to sue when the company’s shares were canceled.

  • November 17, 2017

    Powersports Co. Velocity Gets OK To Tap $25M Of Ch. 11 Loan

    A Delaware bankruptcy judge gave Velocity Holding Co. Inc. the nod Friday to tap $25 million of its post-petition financing that the motorsports parts and apparel company hopes will help fund a rework of its more than $400 million in debt that ultimately proposes a handover to first-lien creditors.

Expert Analysis

  • Enforcing Judgment Against A Debtor's Spouse

    Craig Weiner

    In the rare instance when otherwise collectible assets are owned by a debtor’s spouse — who is not liable on the underlying judgment — a creditor must be determined and creative in order to recover on its judgment, say Craig Weiner and Michael Kolcun of Robins Kaplan LLP.

  • Roundup

    Judging A Book

    Alexander Hamilton

    Are the latest books on the judicial system worth reading? Federal judges share their thoughts in this series of book reviews.

  • Don't Waste This Planning Cycle: Year-End Strategies

    Hugh A. Simons

    Law firms are businesses where partners operate with significant autonomy. To see their priorities translate into individual partner action, firm leaders should use a few collaborative strategies, suggests Hugh A. Simons, former senior partner of The Boston Consulting Group and former COO of Ropes & Gray LLP.

  • Creditors’ Options In Venezuela’s Disorderly Default

    Javier Rubinstein

    By analyzing the case law from Argentina’s default in 2001 and the terms of the Venezuelan bonds, it is possible to predict how a disorderly default might play out in Venezuela's debt crisis. Attorneys with Kirkland & Ellis LLP examine key elements from Argentina’s default in order to predict whether history is likely to repeat itself.

  • From Snaps To Tweets: The Craft Of Social Media Discovery

    Matthew Hamilton

    Courts have consistently held that social media accounts are subject to established discovery principles but are reluctant to allow parties to rummage through private social media accounts. Recent case law confirms that narrowly tailored information requests get the best results, say Matthew Hamilton, Donna Fisher and Jessica Bae of Pepper Hamilton LLP.

  • The Battle Over 3rd-Party Releases Continues

    Matthew Kelsey

    Bankruptcy courts have taken divergent approaches to analyzing whether they have jurisdiction to approve nonconsensual third-party nondebtor releases. While the New York bankruptcy court's recent decision in SunEdison provides another data point for the debate, it leaves some questions unanswered, say attorneys with Gibson Dunn & Crutcher LLP.

  • An Interview With Former DHS Secretary Jeh Johnson

    Randy Maniloff

    Jeh Johnson, the former secretary of homeland security, was kind enough to let me visit him to reflect on his diverse career. He told stories that left me speechless. And yes, the man who was responsible for the Transportation Security Administration removed his shoes when going through airport security. You bet I asked, says Randy Maniloff of White and Williams LLP.

  • A Powerful Tool For Collecting Judgments

    Craig Weiner

    Enforcing a judgment, particularly in foreign jurisdictions, is a complex and difficult endeavor, and filing lawsuits in foreign countries often proves ineffective and costly. These situations require specialization and expertise, and litigants are increasingly turning to court-appointed receivers as a solution, say Craig Weiner and Chelsea Walcker of Robins Kaplan LLP.

  • Series

    Judging A Book: Gilstrap Reviews 'Alexander Hamilton'

    Judge Rodney Gilstrap

    While Alexander Hamilton is the subject of a hit Broadway musical and renewed biographical examinations, professor Kate Brown takes us down a road less traveled in her book "Alexander Hamilton and the Development of American Law" — showing Hamilton as first, last and foremost an American lawyer, says U.S. District Judge Rodney Gilstrap of the Eastern District of Texas.

  • The Case For Creating A Mediation Department At Your Firm

    Dennis Klein

    There are at least four reasons supporting the need for some form of a mediation group within a law firm, especially in firms with larger practices, according to Dennis Klein, owner of Critical Matter Mediation and former litigation partner at Hughes Hubbard & Reed LLP.