Bankruptcy

  • September 25, 2017

    China Fishery Trustee Pushes HSBC Probe In Face Of Appeal

    The trustee overseeing China Fishery Group Ltd. told a New York bankruptcy court that an investigation into HSBC’s “aggressive” prepetition collection efforts should continue even though the bank has appealed the order that kicked it off.

  • September 25, 2017

    Perfumania Hits Back At Shareholder's Equity Committee Bid

    Bankrupt Perfumania pushed back Monday on a shareholder’s request for an official equity committee, saying there’s no need and it could actually jeopardize the “remarkable” $2 per share being offered to equity holders.

  • September 25, 2017

    Gizmodo Says Deadspin Sale Dooms Defamation Claims

    The owner of sports commentary website Deadspin.com again told the New York bankruptcy judge overseeing the case of former Deadspin parent Gawker Media that a Las Vegas sports betting analyst cannot pursue a lawsuit over an allegedly defamatory article, saying Monday that the deal for the company released all presale claims.

  • September 25, 2017

    Rent-A-Wreck Founder Wants Bankruptcy Case Thrown Out

    The founder of bankrupt Rent-A-Wreck of America Inc., who has been locked in a decadelong litigation battle with the company, pushed the Delaware bankruptcy court Monday to either throw out its Chapter 11 filing or transfer it to Maryland, calling the case “a sham.”

  • September 25, 2017

    Puerto Rico Agency Wants To Minimize Restructuring Delays

    Puerto Rico’s fiscal advisory agency is hoping to prevent significant setbacks for the island’s bankruptcy-like restructuring cases in light of the devastation caused by Hurricane Maria, saying in court papers Monday that any matters able to be decided on legal issues alone “should proceed without delay.”

  • September 25, 2017

    Whistleblower Says Ch. 11 Filing Can't Delay Suit

    A relator accusing contractor Capitol Supply Inc. of selling the U.S. government Chinese-made office equipment on Monday asked a D.C. federal court to exclude his suit from Capitol's bankruptcy stay.

  • September 25, 2017

    1st Circ. Grants Appeal In Puerto Rico Bankruptcy Case

    The First Circuit on Friday reversed a lower court ruling and found that a committee of unsecured creditors does have the right to be heard in adversary proceedings spawned from Puerto Rico’s restructuring.

  • September 25, 2017

    Bankruptcy Watchdog Balks Over ATopTech Ch. 11 Plan

    The federal bankruptcy watchdog took issue Friday with microchip company ATopTech Inc.’s Chapter 11 plan, arguing that a baked-in liability shield for creditor Synopsys Inc., owed more than $30 million stemming from an intellectual property infringement judgment, must be removed.

  • September 22, 2017

    Exide, Tort Trustee Clash Over Post-Bankruptcy Relief

    The trustee responsible for pursuing more than $1 billion worth of environmental negligence claims against recently reorganized Exide Technologies Inc. has hit back against the battery recycler’s bid to undo those claims in Delaware bankruptcy court, saying the court has no jurisdiction now that Exide has emerged from bankruptcy.

  • September 22, 2017

    SunEdison Slams 'Disgruntled' Investors' Appeal Over Ch. 11

    Aiming to shoot down an appeal stemming from its now-confirmed Chapter 11 bankruptcy plan, renewable energy giant SunEdison Inc. told a New York federal court this week that investors accusing the company of using an exit financing agreement to buy creditor support are improperly seeking to advance a “self-interested agenda.”

  • September 22, 2017

    Avaya Allows $40M Bankruptcy Claim To Settle Patent Suit

    Bankrupt telecom giant Avaya Inc. became the 14th company to settle allegations that it infringed an Ethernet patent held by Network-1 Technologies Inc., agreeing to allow a $40 million unsecured claim against the estate, according to papers filed in New York bankruptcy court on Thursday.

  • September 22, 2017

    Debt Lawyers Say CFPB Can't Ax $25M Free Speech Suit

    Two lawyers who say their livelihoods were destroyed by the Consumer Financial Protection Bureau’s crackdown on debt-relief firm Morgan Drexen Inc. told a California federal court Thursday that there is no good reason to dismiss their $25 million suit against the regulator.

  • September 22, 2017

    Kid Brands Trustee Wants Ch. 11 Converted Or Dismissed

    The federal bankruptcy watchdog has asked a New Jersey bankruptcy court to pull the plug on defunct children’s products manufacturer Kid Brands Inc., either by converting its Chapter 11 case to a Chapter 7 liquidation or by dismissing it altogether.

  • September 22, 2017

    Caesars Settles With Mississippi On $3M Claim In Ch. 11

    An Illinois bankruptcy judge on Thursday approved a state of Mississippi claim for $3.02 million in Caesars Entertainment Operating Co. Inc.'s Chapter 11 reorganization, giving final approval to the parties' settlement stemming from the state's original request for $26.95 million.

  • September 21, 2017

    Toys R Us Allowed To Continue Customer Rewards Programs

    Loyal customers of Toys R Us were given reassurance Thursday that the bankrupt retail giant will make good on gift cards and other consumer-friendly deals after it received court permission to maintain its customer programs, shortly after gaining access to $2.2 billion in post-petition financing.

  • September 21, 2017

    SEC Seeks No Penalty From IT Firm Over Execs' Alleged Fraud

    A bankrupt information technology company whose former top executives face criminal fraud charges for allegedly plundering their company’s accounts and trying to hide it won’t have to pay a cent under a settlement filed by the U.S. Securities and Exchange Commission in Illinois federal court on Wednesday.

  • September 21, 2017

    WaMu Trust Says No Sanctions For Unpaid Contingency Fee

    The liquidating trustee of long-bankrupt Washington Mutual Inc. has hit back against Grant Thornton LLP’s bid for sanctions over an unpaid $5 million contingency fee, telling a Delaware bankruptcy judge the fee was only approved because the firm lied to the court at an earlier hearing.

  • September 21, 2017

    Lehman Faulty-Mortgage Suit Must Wait, FDIC Says

    The Federal Deposit Insurance Corp. asked a New York bankruptcy court Thursday to hit the snooze button on a suit filed by Lehman Brothers against Guaranty Bank over the sale of shoddy mortgages, saying Lehman must go through an administrative claims process first.

  • September 21, 2017

    Rothstein Feeder Fund Slaps Insurance Broker With $63M Suit

    The liquidating trustee for an investment fund that fed into jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme sued Harden & Associates on Wednesday, claiming the insurance broker's negligence led the fund's insurers to deny coverage after the scheme collapsed.

  • September 21, 2017

    MF Global Asks To Appeal Arbitration Order In Insurer Row

    MF Global asked Wednesday for permission to appeal a New York bankruptcy court's order requiring the defunct brokerage to arbitrate in Bermuda a coverage dispute with its excess insurer, Allied World, saying the decision involves a controlling issue of law and conflicts with two appellate court rulings.

Expert Analysis

  • CFPB's 1st 'Abusive' Claim Against A Loan Purchaser

    Kristie Kully

    The Consumer Financial Protection Bureau’s use of its abusiveness authority to attack Aequitas Capital Management’s willingness to acquire loans with high risks of default certainly makes one wonder about the downside risks of the CFPB’s foray into the capital markets, say attorneys with Mayer Brown LLP.

  • Toys R Us Faces Chapter 11 Challenges

    Stephen Selbst

    Toys R Us recently filed for Chapter 11 bankruptcy, citing the impact of e-commerce as a major factor. Other recent retail bankruptcies underscore how difficult it is for retailers to recover from a bankruptcy filing, and creditors must be prepared, says Stephen Selbst of Herrick Feinstein LLP.

  • The Role Legal Finance Can Play In Firm Year-End Collections

    Travis Lenkner

    Payment collection delays have caused law firms to seek new options, one of which is litigation finance. In this context, litigation finance can offer alternative avenues to firms as they approach the end of a fiscal year or partnership distribution dates, says Travis Lenkner of Burford Capital LLC.

  • 'Per-Doc' Pricing Can Improve Document Review

    file folder

    Imagine going to a restaurant and ordering your steak medium-rare. The steak arrives burned. You expect the kitchen to bring you another one properly done, right? And you don’t expect to pay for two steaks, do you? Paying a vendor for document review should be no different, says Lisa Prowse, an attorney and vice president at e-discovery firm BIA Inc.

  • Finding The Unicorn In Lender Liability Litigation

    Jerry Blanchard

    Investors frequently talk about trying to find the next unicorn, that small startup company that is going to turn into a billion-dollar valuation. The New Jersey district court's recent decision in PNC Bank v. Star Group offers debtors counsel hope that a unicorn has finally arrived in the lender liability context, says Jerry Blanchard of Bryan Cave LLP.

  • Why A Hanjin Fleet Came To Hong Kong

    Dean Young

    The demise of Korea’s Hanjin Shipping Co. Ltd. was the largest bankruptcy of a container line in history, and recently resulted in the biggest ever court sale of ships in Hong Kong, totaling over $600 million. Hong Kong’s legal system makes it an ideal venue for ship mortgage enforcement, say attorneys with Mayer Brown JSM.

  • A Guide To The Executive Branch Official Nomination Process

    Adam Raviv

    Although the Trump administration has completed the vetting and confirmation of a cabinet and White House staff, thousands of senior positions remain unfilled throughout the executive branch. More than ever, people selected for those posts find themselves under close scrutiny, say Adam Raviv and Reginald Brown of WilmerHale.

  • Cautionary Tales For Landlords Of Bankrupt Tenants

    Marshall Hogan

    If the past year is any indication, landlords of bankrupt retail tenants may want to be especially mindful of Section 502(b)(6) of the Bankruptcy Code, which may limit their ability to recover certain damages, says Marshall Hogan of Foley & Lardner LLP.

  • How Collaboration Is Changing Inside Some Law Firms

    Chris Cartrett

    In our recent survey of business of law professionals, nearly half of respondents said that who they collaborate with, inside their law firm, is different from five years ago, says Chris Cartrett of legal software provider Aderant.

  • Uses And Possible Misuses Of 3rd-Party Releases In Ch. 11

    Richard Epling

    The benefits of third-party releases to proponents of debt restructuring are obvious, but the release process also is subject to abuse or overreaching, and there are no clear boundaries beyond which plan proponents may not go, says Richard Epling, a retired partner at Pillsbury Winthrop Shaw Pittman LLP.