Mid Cap
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March 14, 2025
Startup Investor Says Cooley Knew About Fraud Probe
Attorneys for a dry cleaning delivery startup knew that the founder and sole director of the company had fabricated company documents and was the subject of an active securities fraud investigation in Texas as he solicited money from investors, an ex-board member said Friday in response to the law firm's bid to toss a securities fraud lawsuit.
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March 14, 2025
Calif. Hotel Operator Gets Initial OK To Use Cash In Ch. 11
The owner and operator of a hotel in Southern California received a Delaware bankruptcy court's permission Friday to continue using cash to support its operations as the company works to sell its properties and recapitalize through Chapter 11.
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March 14, 2025
Drink Packager Approved For $10.3M Ch. 7 Asset Sale
Drink packaging company Joriki USA Inc. received the green light on Friday in Delaware bankruptcy court for a sale of its assets at a $10.3 million purchase price.
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March 13, 2025
Meet The Attorneys Guiding Dynamic Aerostructures' Ch. 11
Lawyers from Chipman Brown Cicero & Cole LLP and Ropes & Gray LLP are leading the bankruptcy case launched by Dynamic Aerostructures, a California-based aerospace parts supplier to Lockheed Martin and Boeing, as the company pursues a sale of its assets.
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March 13, 2025
Bankruptcy Watchdog Ouster Crosses Into Uncharted Waters
The recent removal of the head of the U.S. Trustee's Office may be sending the previously nonpolitical bankruptcy watchdog into unknown territory, causing concerns in the legal space.
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March 13, 2025
Sandy Hook Families Oppose Revived Infowars Sale Bid
Families of the victims of the 2012 Sandy Hook Elementary School shooting have urged a Texas bankruptcy judge to block an Alex Jones-affiliated company's revived bid to buy his Infowars platform, saying it will cause delays in the more than three-year-old related bankruptcy cases.
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March 13, 2025
Senate Stablecoin Bill Advances With Democrats Divided
The Republican-led U.S. Senate Banking Committee advanced its stablecoin framework Thursday with the help of Democrats who broke from ranking member Sen. Elizabeth Warren's opposition, while a separate bill on what is being called debanking passed along party lines.
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March 13, 2025
Dormify Gets OK To Tap DIP Funds As It Works Toward Sale
A Delaware bankruptcy judge on Thursday said he would allow Dormify Inc. to borrow up to $265,000 in Chapter 11 financing as the dorm-room decorating retailer works to secure an agreement to sell its business.
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March 13, 2025
Alex Jones' Sandy Hook Atty Suspended Over Info Release
Former Alex Jones attorney Norm Pattis will be suspended from practicing law for two weeks, a Connecticut judge has ruled, capping a three-year ethics saga that started when Pattis asked an associate to send Sandy Hook families' medical records to the Infowars host's Texas bankruptcy lawyer.
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March 12, 2025
Calif. Trucking Co. Reaches Settlement And $3M Sale
A Texas bankruptcy judge said he would approve a global settlement between trucking company Kal Freight Inc., several of its secured lenders and its committee of unsecured creditors, as well as a $3.3 million sale of some of its assets.
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March 12, 2025
PetroQuest Wants To Sell $8M Judgment In Ch. 11
Bankrupt oil and gas company PetroQuest Energy has asked a Delaware bankruptcy judge to approve bidding procedures to sell its rights to an $8 million judgment in its favor against Sanare Energy Partners, hoping the proceeds will hold it over after a $20.6 million asset sale fell through.
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March 12, 2025
Pallet Biz Says District Court Can't Weigh Bankruptcy Order
Pallet company PaLIoT Solutions Inc. told a Michigan federal judge on Wednesday that the issue of whether it violated a bankruptcy court's order regarding trade secrets purchased in a rival company's asset sale has already been decided, while the competitor said its rival is flip-flopping on its arguments.
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March 12, 2025
CarePoint Seeks OK For Plan To Hand Off Hospital Operations
A hospital operator urged a Delaware bankruptcy judge to overrule objections to its Chapter 11 plan, arguing Wednesday that it's the only way to save three critical New Jersey medical facilities.
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March 12, 2025
Pa. Coal Co. Auction Gets 2-Week Pause After Value Spike
A Pennsylvania bankruptcy judge has agreed to allow a pause in the auction of bankrupt Corsa Coal Corp.'s assets after hearing from lawyers in the Chapter 11 case that the machinery, equipment and real estate being sold has recently been appraised for more than the current bids.
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March 12, 2025
Inflation, Manufacturing Woes Landed Aerospace Co. In Ch. 11
Quality control issues stemming from inconsistent manufacturing practices and global inflation spiking inventory costs led Dynamic Aerostructures LLC, a California-based supplier to aerospace companies like Boeing and Lockheed Martin, to seek bankruptcy protection in late February with up to $100 million in debt, according to its court papers.
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March 12, 2025
US Trustee Seeks Sanctions Against NY Lawyer
The federal bankruptcy watchdog asked a New York judge Wednesday to sanction a lawyer who allegedly concealed her conflicts of interest while representing a debtor and a buyer in two separate Chapter 11 cases.
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March 12, 2025
Fox Rothschild Hires Lewis Brisbois Litigator In DC
A trial attorney who spent the past four years at Lewis Brisbois, has moved his practice to Fox Rothschild LLP and told Law360 Pulse in an interview Wednesday that his new role continued a family tradition of Fox Rothschild attorneys stretching back 100 years.
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March 11, 2025
Zachry Opposes Nebraska Utility's $38M Administrative Claim
Bankrupt natural gas contractor Zachry Holdings has objected to a Nebraska public electric utility's administrative claim seeking $38 million in damages for delays in the construction of new generating stations, saying it is too early to seek the claim, and the requested fees exceed the purported damages.
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March 11, 2025
Catching Up With New Bankruptcy Case Action
A business automation firm, a dermatology technology maker and a telecommunications business software group all filed for Chapter 11 with debt-for-equity swap plans. A Tex-Mex restaurant chain filed for Chapter 11 in the face of macroeconomic pressures. An energy industry engineering firm filed for bankruptcy after trade debt bogged down merger or sale efforts. A Missouri car transporter is looking to liquidate in Chapter 7, and two real estate companies filed for Chapter 11 in New York.
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March 11, 2025
Judge Questions Authority To Pay Giuliani's Ch. 11 Bill
A New York bankruptcy judge questioned Tuesday whether he could order former New York City Mayor Rudy Giuliani to sell off real estate to cover claims against his Chapter 11 estate, saying an order dismissing his bankruptcy case included assumptions that didn't come to fruition.
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March 11, 2025
Vt. Diocese Creditors Balk At Paying Accused Priests In Ch. 11
Unsecured creditors of the bankrupt Roman Catholic Diocese of Burlington on Tuesday objected to the debtor continuing to pay pension benefits to retired priests accused of abusing children, saying the diocese's own investigation found the allegations against the two priests were credible.
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March 11, 2025
Chester, Pa., Water Authority Seeks Stay Of Ch. 9 Docs Order
The Chester Water Authority has asked a Pennsylvania bankruptcy court for a stay pending appeal of an order to produce documents to the bankrupt City of Chester, which seeks to sell off the utility's assets, saying the order was unconstitutional.
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March 11, 2025
BurgerFi Gets Ok For Ch. 11 Plan Over IRS Objections
A Delaware bankruptcy judge on Tuesday confirmed the disclosure statement and Chapter 11 reorganization plan for bankrupt restaurant operator BurgerFi International Inc., overruling an objection from the U.S. government on behalf of the Internal Revenue Service regarding tax claims on certain interest fees.
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March 11, 2025
Fannie Mae Says Complex Filed Ch. 11 To Duck $73M Loan
Fannie Mae told a federal court Monday that a Houston apartment complex's Chapter 11 filing was a "tactic" to avoid its obligation to repay a $73 million loan.
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March 11, 2025
Dykema Doubles Houston Roster With 7 New Atty Hires
Dykema Gossett PLLC has expanded in Houston with the addition of seven attorneys, five of whom joined from Kane Russell Coleman Logan PC and two who came aboard from Hirsch & Westheimer PC.
Expert Analysis
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Crypto Has Democratized Trading In Bankruptcy Claims
Following the pandemic, there has been a wave of cryptocurrency bankruptcies and a related increase in access to information, allowing nontraditional bankruptcy investors to purchase claims and democratizing a once closed segment of alternative investing, says Joseph Sarachek at Strategic Liquidity.
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The Case For Post-Bar Clerk Training Programs At Law Firms
In today's competitive legal hiring market, an intentionally designed training program for law school graduates awaiting bar admission can be an effective way of creating a pipeline of qualified candidates, says Brent Daub at Gilson Daub.
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5 Key Tips For Attorneys In The Subchapter V Arena
Subchapter V cases present unique challenges for the nondebtor parties-in-interest, and habits developed by attorneys in typical Chapter 11 cases do not necessarily translate, meaning creditors and their counsel should quickly take a proactive role in their cases to protect their interests, which can be done by attending the 341 meeting, analyzing the plan, and more, says Kelly Singer at Squire Patton.
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Attorneys Have An Ethical Duty To Protect The Judiciary
The tenor of public disagreement and debate has become increasingly hostile against judges, and though the legislative branch is trying to ameliorate this safety gap, lawyers have a moral imperative and professional requirement to stand with judges in defusing attacks against them and their rulings, says Deborah Winokur at Cozen O'Connor.
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Why The Debt Maturity Wall Is Still A Figment, For Now
While the phenomenon of the debt maturity wall — a growing wall of staggered corporate debt maturities — has been considered a looming problem since the aftermath of the 2008 global financial crisis, it’s unlikely to have significant consequences before 2025 due to factors such as quantitative easing and evolved lending practices, says Michael Eisenband at FTI Consulting.
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AI Can Help Lawyers Overcome The Programming Barrier
Legal professionals without programming expertise can use generative artificial intelligence to harness the power of automation and other technology solutions to streamline their work, without the steep learning curve traditionally associated with coding, says George Zalepa at Greenberg Traurig.
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10 Essential Bankruptcy Litigation Tips For In-House Counsel
Bankruptcy litigation is a complex and multifaceted area of law that poses unique challenges for in-house counsel, and there are several tools at legal professionals' disposal, like appraisals and understanding jurisdictions, to stay well-informed and protect their companies' interests, says Alison Ashmore at Dykema.
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Preparing Law Students For A New, AI-Assisted Legal World
As artificial intelligence rapidly transforms the legal landscape, law schools must integrate technology and curricula that address AI’s innate challenges — from ethics to data security — to help students stay ahead of the curve, say Daniel Garrie at Law & Forensics, Ryan Abbott at JAMS and Karen Silverman at Cantellus Group.
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Sellers Seeking Best Deal Should Focus On Terms And Price
Rising interest rates and a decline in the automotive mergers and acquisitions market mean that a failed deal carries greater stakes, and sellers therefore should pursue not only the optimum price but also the optimum terms to safeguard their agreement, says Joseph Aboyoun at Fox Rothschild.
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General Counsel Need Data Literacy To Keep Up With AI
With the rise of accessible and powerful generative artificial intelligence solutions, it is imperative for general counsel to understand the use and application of data for myriad important activities, from evaluating the e-discovery process to monitoring compliance analytics and more, says Colin Levy at Malbek.
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Rite Aid's Reasons For Ch. 11 Go Beyond Opioid Suits
Despite opioid-related lawsuits being the perceived reason that pushed Rite Aid into bankruptcy, the company's recent Chapter 11 filing reveals its tenuous position in the pharmaceutical retail market, and only time will tell whether bankruptcy will right-size the company, says Daniel Gielchinsky at DGIM Law.
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Navigating Discovery Of Generative AI Information
As generative artificial intelligence tools become increasingly ubiquitous, companies must make sure to preserve generative AI data when there is reasonable expectation of litigation, and to include transcripts in litigation hold notices, as they may be relevant to discovery requests, say Nick Peterson and Corey Hauser at Wiley.
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Finding Focus: Strategies For Attorneys With ADHD
Given the prevalence of ADHD among attorneys, it is imperative that the legal community gain a better understanding of how ADHD affects well-being, and that resources and strategies exist for attorneys with this disability to manage their symptoms and achieve success, say Casey Dixon at Dixon Life Coaching and Krista Larson at Stinson.