Bankruptcy

  • April 24, 2017

    Trial Over Assets Linked To $1.5B GM Loan Gets Underway

    A General Motors trust and hundreds of lenders from which it seeks to recover transfers related to a $1.5 billion term loan commenced a New York bankruptcy court trial Monday to determine the nature and value of the lenders' security interests in assets at a number of the carmaker's U.S. facilities.

  • April 24, 2017

    Bankrupt RadioShack Gets OK To Pay Up To $3.4M In Bonuses

    A Delaware bankruptcy judge on Monday approved RadioShack’s plan to pay up to $3.4 million in bonuses to employees, including top-level executives, after the struggling retailer agreed to changes in the compensation plan spurred by unsecured creditors and the U.S. trustee’s office.

  • April 24, 2017

    Cosi Seeks Ch. 11 Plan OK, Fights Exec's Severance Claims

    Fast casual restaurant chain Cosi Inc. on Monday amid a flurry of case filings offered a Massachusetts bankruptcy court a proposed order for its Chapter 11 reorganization while Cosi’s successful stalking horse bidder sought to nix claims brought by a former executive, saying they were filed too late.

  • April 24, 2017

    ATopTech Seeks $6M DIP Financing For Stalking Horse Sale

    Bankrupt microchip maker ATopTech Inc. Friday asked a Delaware bankruptcy court to approve a $6 million debt facility provided through the Hong Kong businessman whose $9 million stalking horse offer for the company’s assets was approved last week.

  • April 24, 2017

    Gawker Defends Bid To Investigate Hulk Hogan's Backer

    Gawker Media LLC on Monday struck back against objections to its request for an investigation into whether its creditors are being funded by billionaire Peter Thiel, who funded the Hulk Hogan privacy lawsuit which brought about its demise, telling a New York bankruptcy judge the examination is entirely proper.

  • April 24, 2017

    Solar Co. Verengo Gets OK On Ch. 11 Plan, Sale To Creditors

    A Delaware bankruptcy judge gave rooftop solar company Verengo Inc. the nod Monday for its Chapter 11 plan that implements a sale to a joint venture of Angeleno Group LLC and ClearSky Power & Technology Fund, both major creditors in the case.

  • April 24, 2017

    Wells Fargo Ditches Restrictions Over 'Living Will' Issues

    Federal regulators removed restrictions that barred Wells Fargo & Co. from opening international branches or purchasing nonbank firms, saying in a letter Monday that the bank had fixed deficiencies in its "living will," a plan that details how to take it apart during a crisis.

  • April 24, 2017

    Dewey Execs Pin Hopes On Undermining State's Case

    Defense attorneys for two former Dewey & LeBoeuf LLP executives told a New York judge on Monday that they will not present full-blown defense cases, meaning a jury will likely start weighing the financial crisis-era fraud case next week.

  • April 24, 2017

    Adams Resources Subsidiary Hits Ch. 11 With Sale Plans

    A subsidiary of Adams Resources & Energy Inc. hit Chapter 11 on Friday in Delaware bankruptcy court with a plan to auction its assets after several years of depressed oil prices caught up with the exploration firm’s bottom line and created a liquidity shortage for the company.

  • April 24, 2017

    5th Circ. Backs Dismissal Of ATP Investor Suit

    The Fifth Circuit on Friday upheld the dismissal of a shareholder suit accusing executives of now-bankrupt ATP Oil & Gas Corp. of giving misleading information about its financial health and boardroom turmoil, saying there's no evidence the company intended to deceive investors.

  • April 24, 2017

    Rupari Says Ch. 11 Adversary Process Must Move Swiftly

    Attorneys for bankrupt meat distributor Rupari Food Services Inc. told a Delaware judge Monday that an adversary proceeding it filed against Tony Roma's Steakhouse regarding a licensing agreement needs to be resolved as quickly as possible to maintain its post-petition funding and stalking horse bid.

  • April 24, 2017

    BCBG Can Cancel Azria Employment Contract, Judge Says

    A New York federal judge decided Monday that bankrupt women's apparel company BCBG Max Azria Group Inc. can escape a $7 million golden parachute payment to founder Max Azria's wife Lubov, ruling her employment contract and the company’s 2015 restructuring agreement are not integrated.

  • April 24, 2017

    Bankrupt Ciber Sues Wash. Board Over Software Deal

    Bankrupt information technology company Ciber Inc. sued the state of Washington in an adversary proceeding on Friday, saying it and a state education board owe $13 million for a computer system Ciber has ready but that, due to internal dysfunction, the state board hasn't implemented.

  • April 24, 2017

    5th Circ. Largely Sides With SEC In Life Partners Appeal

    The U.S. Securities and Exchange Commission persuaded the Fifth Circuit to partly reinstate a jury verdict against two executives at “death bonds” trader Life Partners Holdings Inc. on Friday, but the appeals court also threw out civil penalties after finding that the lower court miscalculated.

  • April 24, 2017

    Trio Of Directors Urge U.S. Bankruptcy Court To Nix Israeli Suit

    Three former directors of the Chapter 15 debtor and now-defunct electric car company Better Place Inc. again urged a Delaware bankruptcy court on Friday to toss a suit its liquidators have brought against them in Israeli court, saying U.S. law still applies in that case.

  • April 24, 2017

    Great Lakes Pipeline Seeks OK Of Essar Contract Fight Deal

    TransCanada Corp. unit Great Lakes Gas Transmission LP told a Delaware bankruptcy court Friday to approve a bid from Chapter 11 debtor Essar Steel Minnesota LLC to allow a $33 million proof of claim that would settle a long-running contract dispute with the natural gas transporter, calling objections to the bid confounding.

  • April 24, 2017

    Justices Won't Hear GM's Appeal Of Bankruptcy-Shield Ruling

    The Supreme Court will not review a federal appeals court's decision that General Motors must bear responsibility for some of its predecessor company's actions even after a 2009 bankruptcy, it said Monday, answering the weightiest question surrounding pending legal claims over a deadly ignition-switch defect.

  • April 21, 2017

    Retailer Bebe Will Shut All Stores To Avoid Bankruptcy

    Women’s clothing maker Bebe Stores Inc. is the latest in a string of mid-size apparel retailers to call it quits it recent months, announcing Friday it will close all of its 180 stores by next month amid talk of transitioning to online sales, in an effort to avoid bankruptcy.

  • April 21, 2017

    Westinghouse Ch. 11 Threatens Fate Of US Nuclear Projects

    The recent bankruptcy filing of Westinghouse Electric Co. LLC, Toshiba’s global nuclear energy arm, could put the fate of its unfinished nuclear reactor projects in the U.S. at risk, the Congressional Research Service said, noting concern over the federal government’s $8.3 billion in guaranteed liabilities.

  • April 21, 2017

    Bankrupt Ryckman Creek Floats Deal With Gas Storage Client

    Ryckman Creek Resources LLC proposed a settlement Friday in Delaware bankruptcy court that would resolve both prepetition and post-petition litigation brought by Anadarko Energy Services Co. relating to gas storage contracts at the debtor’s Wyoming facility.

Expert Analysis

  • Roundup

    Counsel To Counsel: Insights From Law Firm GCs

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    Catch up if you missed last week's special series spotlighting general counsel at four firms and the issues they encounter in an increasingly complex legal environment.

  • Memorable Lessons From Violin Memory And Other Auctions

    Sheon Karol

    When Violin Memory filed Chapter 11 in December, prospects for the company seemed grim. But the combination of rival offer methods and special process features resulted in an auction that exceeded all expectations, says Sheon Karol of The DAK Group.

  • Monthly Column

    Gray Matters: The Attorney-Client Team

    Robert Creo

    A 1979 study of attorney-client interactions revealed startling information: Despite years of education and training to hone their legal expertise, attorneys were not acting as independent counselors but rather allowing their clients to control them. Our experience is that this trend has accelerated, say dispute resolution experts Robert Creo and Selina Shultz.

  • Litigation Finance, Big Data And The Limits Of AI

    Christopher Bogart

    Theoretically, both better data and its better use should be able to improve results in litigation, and thus help litigation financiers allocate more capital to meritorious matters. However, while big data and artificial intelligence are intriguing additions to the litigation toolkit, they are far from turning litigation finance on its head, says Christopher Bogart, CEO of Burford Capital LLC.

  • Series

    Counsel To Counsel: Mama Said There'll Be Days Like This

    Peter J. Engstrom

    It's no longer enough for law firms simply to provide expert legal advice — we are expected to mirror clients' legal, ethics and social commitments and promises. For law firm GCs, the resulting job demands seem to grow exponentially, says Peter Engstrom, general counsel of Baker McKenzie.

  • Disarming Puerto Rico’s Pension Time Bomb

    Richard Cooper

    Puerto Rico faces difficult choices regarding how to address the substantial cost and massive underfunding of its public pension sy­stems. Title III is likely the best option available to the commonwealth to adjust its public pension obligations as part of the larger effort to address its current fiscal crisis, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Series

    Counsel To Counsel: A Law Firm GC's Data Protection Duties

    Thomas W. White

    Increasingly, we see companies in all industries seeking to perform various levels of due diligence on our information security defenses. We received three times as many diligence requests from clients and prospective clients in 2016 as we did in 2015. Some clients even conduct their own penetration tests, says Thomas White, general counsel of WilmerHale.

  • Series

    Counsel To Counsel: Evaluating Positional Conflicts

    Nicholas A. Gravante Jr.

    What happens when attorneys come to their general counsel’s office with knowledge of a potential positional conflict? While the inquiry will depend on the rules governing the particular jurisdiction, there are a few general questions to consider from both business and legal ethics perspectives, say general counsel Nicholas A. Gravante Jr. and deputy general counsel Ilana R. Miller of Boies Schiller Flexner LLP.

  • Health Republic’s Curious Liquidation: Part 11

    James Veach

    Because so little information has been provided to the public, it's hard to know if the New York Department of Financial Services missed an opportunity to compromise and resolve issues surrounding the risk corridor and reinsurance programs during the Obama administration, says James Veach of Mound Cotton Wollan & Greengrass LLP in his continued analysis of Health Republic's mysterious liquidation process.

  • Series

    Counsel To Counsel: 5 Challenges For A Law Firm GC

    John Koski

    Regardless of where we live and practice, regardless of whether trade deals succeed or fail, and regardless of whether the movement of people or capital is easy or difficult, our clients will still have needs or problems far away from home, says John Koski, global chief legal officer at Dentons.