Bankruptcy

  • February 17, 2017

    Auditor Reviewed Dewey's London Tax Docs, Jury Hears

    A defense attorney for ex-Dewey & LeBoeuf LLP Chief Financial Officer Joel Sanders on Friday questioned the firm's former overseas finance director’s assertion that certain accounting maneuvers Sanders had pursued were improper, showing a New York jury evidence that outside auditors had reviewed the transactions.

  • February 17, 2017

    Cosi Allowed To Continue Using Cash Collateral In Ch. 11

    A Massachusetts bankruptcy judge on Friday entered an order giving fast-casual restaurant chain Cosi Inc. permission to use cash collateral in its Chapter 11 bankruptcy case for another two months, ruling that spending the cash is in the best interest of Cosi’s estate.

  • February 17, 2017

    Union Pacific Can't Dodge Asarco's $482M Cleanup Cost Suit

    An Idaho federal judge on Thursday trimmed copper mining company Asarco LLC’s lawsuit seeking to establish Union Pacific Railroad’s liability for part of a $482 million environmental cleanup, but declined to toss the entire matter as the rail company had wanted.

  • February 17, 2017

    FDIC Can Split Colonial Trials Against Crowe Horvath, PWC

    An Alabama federal judge agreed Friday to split trials for claims by the Federal Deposit Insurance Corp. alleging that Crowe Horwath LLP and PricewaterhouseCoopers LLP acted negligently by failing to catch a $1.8 billion fraud scheme involving defunct former client Colonial BancGroup Inc.

  • February 17, 2017

    Under Armour Hid Sports Authority Ch. 11's Impact, Suit Says

    Athletic gear maker Under Armour Inc. was slapped with a shareholder suit in Maryland federal court Thursday accusing the Baltimore-based company of concealing the impact of Sports Authority's bankruptcy from investors in order to artificially inflate its stock price.

  • February 17, 2017

    Wet Seal Landlords Say Cash Use Budget Doesn't Cover Rent

    Landlords holding leases for stores operated by bankrupt clothing retailer The Wet Seal LLC objected Friday in Delaware bankruptcy court to the company’s proposed use of cash collateral, which would not cover rent while the company conducts store closing sales through February.

  • February 17, 2017

    EFH Wins Official Ch. 11 Plan OK After 'Extraordinary' Case

    A Delaware bankruptcy judge on Friday officially confirmed Energy Future Holdings Corp.’s Chapter 11 plan featuring the $18 billion sale of the company to NextEra Energy Inc., overruling objections from the U.S. Trustee’s Office over fees for creditors' professionals paid from the estate and asbestos claimants' protest of a bar date for unmanifested claims.

  • February 17, 2017

    Austrian Co. Can't Exit GM Suit Over $1.5B Loan

    A New York bankruptcy judge on Thursday told an Austrian company it can’t use jurisdictional arguments to escape a lawsuit trying to recover transfers to hundreds of General Motors’ former bank lenders related to a $1.5 billion term loan.

  • February 17, 2017

    $6M DIP Approved For The Limited, Ahead Of Tuesday Auction

    A Delaware bankruptcy court on Thursday gave ailing women’s clothing retailer The Limited Co. LLC the green light for a $6 million debtor-in-possession financing package, just days before a bankruptcy auction scheduled for Feb. 21.

  • February 17, 2017

    ATopTech Fires Back At Objections Over Sale, Bonus Plans

    Software firm ATopTech Inc. on Friday countered arguments made by the U.S. trustee and Synopsys Inc. in objections over the company’s bid procedures and employee bonus plan, saying the requests are fair and reasonable and serve to get the best value out of its assets.

  • February 17, 2017

    SunEdison's Unsecured Creditors Grilled Over Fraud Suit

    SunEdison's unsecured creditors were challenged in New York bankruptcy court Thursday over the durability of their allegations that the energy giant’s secured lenders benefited from hundreds of millions of dollars in fraudulent transfers used to mask the company’s deteriorating finances, finding themselves forced to defend a lack of specific details.

  • February 16, 2017

    Fisker Fight Over Karma Share Issue Retained By Del. Court

    A Delaware bankruptcy judge declined Friday to dismiss a suit challenging an equity sale by the company spun off from defunct electric carmaker Fisker Automotive’s Delaware bankruptcy, and rejected a related call to abstain from hearing the case.

  • February 16, 2017

    Founder Of BlueHippo, Itself Underwater, Files For Ch. 7

    The former CEO of now-defunct BlueHippo Funding LLC filed for personal Chapter 7 bankruptcy in Florida on Wednesday, two days before he was required to respond to a motion to hold him in contempt for failing to pay $13.4 million for violating an order that his company cease deceptive practices.

  • February 16, 2017

    International Shipholding Ch. 11 Plan Hits Creditor Snag

    International Shipholding Corp. was forced by a New York bankruptcy judge on Thursday to engage in a separate hearing with a financier over a $6.25 million administrative priority claim after resolving all but one secured lender's objection to its amended plan to restructure more than $200 million in debt.

  • February 16, 2017

    EFH On The Verge Of Exiting Ch. 11 With $18B NextEra Deal

    A Delaware bankruptcy judge said Thursday that Energy Future Holdings Corp.'s Chapter 11 plan centered on an $18 billion sale to NextEra Energy Inc. meets all the standards for confirmation, bringing the power giant to within inches of closing out its nearly 4-year-long and difficult $42 billion case.

  • February 16, 2017

    Dewey Ex-Finance Head Says Accounting Fix Was Wrong

    The former international finance director at Dewey & LeBoeuf LLP testified in Manhattan criminal court on Thursday that one of two ex-Dewey executives facing a fraud retrial asked her to make accounting entries she thought were improper.

  • February 16, 2017

    Investors Can't Revise Distribution For $15M Farm Loan Scam

    An Indiana federal judge on Thursday backed a receiver’s plan to distribute recovered funds to investors allegedly misled about an asset manager’s use of $15 million in farm loans, denying a group’s plan to split the investors into different tiers for recovery.

  • February 16, 2017

    JPMorgan's $797M Settlement With Lehman Gets Court OK

    A New York bankruptcy judge on Thursday signed off on JPMorgan Chase Bank NA’s $797.5 million settlement with Lehman Brothers Holdings Inc., ending the last of the lawsuits and disputes between the two stemming from Lehman’s crisis-triggering 2008 collapse.

  • February 16, 2017

    Gorsuch Nomination Hearings To Kick Off In March

    Opening statements in a hearing on Judge Neil Gorsuch’s nomination to the U.S. Supreme Court will begin on March 20, with questioning of the associate justice-designate commencing the following day, Senate Judiciary Committee Chairman Chuck Grassley said Thursday.

  • February 16, 2017

    Paragon Defends Bid For More Time To File Ch. 11 Plan

    Paragon Offshore PLC pushed back Thursday against the unsecured creditors committee's bid to block an extension of the debtor's Chapter 11 plan exclusivity period, arguing that it would be less expensive to spend extra time to fashion a consensual bankruptcy strategy than to litigate two competing ones.

Expert Analysis

  • In Retrospect

    Relearning The Lessons Of Korematsu's Case

    Randy Maniloff

    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.

  • Health Republic's Curious Liquidation: Part 8

    James Veach

    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.

  • How A General Counsel Should Think About AI: Part 2

    Bruce J. Heiman

    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.

  • Health Republic's Curious Liquidation: Part 7

    James Veach

    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.

  • How A General Counsel Should Think About AI: Part 1

    Bruce J. Heiman

    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.

  • What You Need To Know About 'Unrestricted Subsidiaries'

    Michael Friedman

    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.

  • Saving Lawyers 1 Less Drink At A Time

    Jennifer Gibbs

    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 Lesson On The Rule Of Explicitness

    Sarah R. Borders

    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.

  • Opinion

    Lawyers Cannot Stay Silent While Trump Belittles The Courts

    Alexandra Wald

    This is not the first time that a president has criticized the judiciary. But what is unique about President Donald Trump's attacks is that they target not just a specific decision, but the judiciary and its decision-making power altogether. Every lawyer, regardless of political persuasion, must speak up, says Alexandra Wald of Cohen & Gresser LLP.

  • Marketing Basics For Solo Practitioners And Small Law Firms

    Matthew Horn

    There is no question that solo practitioners and small law firms need to spend the majority of time on legal work, but in order to achieve sustainable growth, marketing should not be a secondary task “put-off” until you have some free time, says Matthew Horn, founder of Legal Services Link LLC.