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Bankruptcy

  • June 21, 2018

    Quick Win Bid Denied In Aerogroup Ch. 11 Creditor Fight

    Creditors disputing the allocation of sale proceeds in the Chapter 11 case of shoe retailer Aerogroup International Inc. learned Thursday that a motion for summary judgment in the fight would be denied by a Delaware judge and informed the court of their plan for a hearing on the matter set for next week.

  • June 21, 2018

    Liberty Withdraws $1.16B Offer For 40% Of IHeartMedia

    Liberty Media has taken a much talked-about $1.16 billion offer for a 40 percent slice of iHeartMedia off the table, according to a Thursday court filing, leaving the bankrupt radio giant with no outside funding source as it seeks to cut $10 billion from its swollen balance sheet.

  • June 21, 2018

    HCR ManorCare Presents New Ch. 11 Plan with Better Deal

    Assisted living company HCR ManorCare Inc. returned to Delaware bankruptcy court Thursday to receive approval for an updated Chapter 11 plan that will increase recoveries for equity holders if the acquirer of the debtor’s assets closes a merger of its own.

  • June 21, 2018

    TransCare Trustee Pressed On $10M Suit Against Lynn Tilton

    Asked on Thursday to explain the gist of a $10 million clawback suit against Lynn Tilton and her private equity firm, Patriarch Partners LLC, counsel for the liquidating trustee of TransCare Corp. said the distressed-debt maven breached a legal duty to protect the ambulance operator from ruin.

  • June 21, 2018

    Pension, Discovery Deals Reached In Tops Markets Ch. 11

    Tops Markets LLC on Thursday received approval from a New York bankruptcy court for a settlement of a long-standing dispute over $184 million in pension liabilities at the same time it told the court it had reached an agreement with creditors in a discovery dispute.

  • June 21, 2018

    Creditors Object To $750M Lehman-Credit Suisse Deal

    Two hedge funds threw a wrench into a massive proposed derivatives settlement between Lehman Brothers Holdings Inc. and Credit Suisse AG with an objection filed on Wednesday, sharply questioning Lehman's whiplash-inducing turn from demanding $75 million to agreeing to pay $750 million in the "black box" deal.

  • June 20, 2018

    Ex-Dewey CFO Disbarred By Fraud Scheme Felony Conviction

    Former Dewey & LeBoeuf LLP chief financial officer Joel Sanders, convicted in New York state court last year on fraud and conspiracy charges, was disbarred Wednesday.

  • June 20, 2018

    Zohar Ch. 11 Director Deal Approved With Indemnity Change

    An agreement between the Zohar Funds and an independent director appointed to oversee monetization of the debtors' assets in their Ch. 11 cases received approval Wednesday when a Delaware judge said changes to the deal’s indemnity provisions were acceptable.

  • June 20, 2018

    IHeartMedia Beats US Trustee's Objection To Exec Bonuses

    A Texas bankruptcy court Tuesday approved iHeartMedia Inc.'s plan to pay a dozen of its top executives up to $25 million in bonuses for 2018, overriding an objection by the U.S. Trustee's Office.

  • June 20, 2018

    Tops Markets’ Creditors Push For Probe Of Pre-Ch. 11 Moves

    The unsecured creditors of Tops Markets LLC are set to appear in New York bankruptcy court Thursday after calling for an investigation into the bankrupt grocery chain and payments made by its previous ownership group that saddled the company with unsustainable liabilities, arguing discovery provided by the debtors is inadequate.

  • June 20, 2018

    Rennert, Ex-Attys Move To Settle Row Over $214M Verdict

    The Renco Group has reached a preliminary agreement to settle a case against its former attorneys, who it claims are to blame for an “inconsistent” jury verdict that cost the company and its billionaire owner Ira Rennert $214 million in damages.

  • June 20, 2018

    Judge OKs $13.5M BNY, JPM Settlement In $15M Debt Suit

    A federal judge in Philadelphia tentatively approved a $13.5 million settlement on Wednesday between Bank of New York Mellon Corp., JP Morgan Chase & Co. and investors who accused the banks of failing to go to bat for them when the hospital whose debt they had purchased went bankrupt.

  • June 20, 2018

    Gawker Auction Set For July After Stalking Horse Offer OK'd

    A New York bankruptcy judge on Wednesday approved the $1.1 million stalking horse offer and bidding procedures for the Gawker.com domain name and its archive of old stories, clearing the way for an auction scheduled for next month.

  • June 20, 2018

    Westinghouse Moves To Ax $262M In Fluor Contract Claims

    The lawyers tending to the Chapter 11 estate of Westinghouse Electric filed court papers on Tuesday asking a New York bankruptcy judge to reject $262 million in creditor claims by Fluor Enterprises Inc., saying the nuclear project contractor is seeking unearned work fees stemming from canceled agreements.

  • June 20, 2018

    Applebee's Slams Affiliate Fee Escrow Plan In Del. Ch. 11

    Applebee's brand owner Dine Brands Global Inc. objected Wednesday to a bankrupt franchisee’s Delaware court proposal to escrow franchise fees rather than continue routine payments, arguing that restaurants now in Chapter 11 owe the payments for continued national trademark benefits.

  • June 20, 2018

    Think Finance Gets Support On Bid To Dismiss CFPB Suit

    The Native American Financial Services Association and the state of Oklahoma have thrown their support behind Think Finance LLC's bid to shake a Consumer Financial Protection Bureau suit accusing the financial technology company of duping borrowers and using sham tribal payday lenders to collect money it wasn't owed.

  • June 19, 2018

    Zohar Says Independent Director Indemnification Is Critical

    The Zohar Funds bolstered their case in support of a retention agreement for an independent director Tuesday, telling a Delaware court that the person selected to oversee monetization of the bankrupt distressed company investment vehicle's assets should be given protection from litigation in the form of indemnification.

  • June 19, 2018

    Ambac Opens 1st Circ. Fight Over Puerto Rico Bond Diversion

    Ambac Assurance Corp. on Monday launched its opening arguments in an appeal over the diversion of highway bond revenues in Puerto Rico stemming from a ruling in the territory's bankruptcy-type cases, saying the underlying acts by the island's government violated the Constitution.

  • June 19, 2018

    HSBC Loses Stay Protection In China Fishery Ch. 11 Probe

    A New York bankruptcy judge Monday ended a stay on discovery by the trustee overseeing China Fishery Group Ltd.'s Chapter 11 inquiry into HSBC’s debt collection efforts against the company a month after the Second Circuit turned down HSBC’s attempt to stop it.

  • June 19, 2018

    AngioDynamics Seeks Biolitec Patents To Satisfy $75M Award

    Medical technology company AngioDynamics Inc. hit Biolitec AG and its fugitive owner with a lawsuit in Massachusetts federal court seeking to gain control of the company’s patents to satisfy a nearly $75 million judgment that Biolitec has dodged for over four years.

Expert Analysis

  • Opinion

    BigLaw's Associate Salary Model Is A Relic Of A Bygone Era

    William Brewer

    Legal industry compensation practices are once again in the news as BigLaw firms continue to match the new high watermark of $190,000 for first-year associate salaries. The typical model of increasing associate salaries uniformly fails star associates, the firms they work for and, ultimately, the clients they serve, says William Brewer, managing partner of Brewer Attorneys & Counselors.

  • #MeToo At Law Firms And What We Can Do About It

    Beth Schroeder.JPG

    While some may say it’s ironic, it’s also embarrassing and enraging that the very industry that offers anti-harassment training, policies and counsel now finds itself the subject of #MeToo headlines. The American Bar Association recommendation that will bring about the greatest change is the call to provide alternative methods for reporting violations, says Beth Schroeder, chair of Raines Feldman LLP's labor and employment group.

  • How Will Weinstein Co. Bankruptcy Impact Accusers?

     Matthew LaGarde

    Due to the idiosyncrasies of American bankruptcy law, The Weinstein Company's recent bankruptcy filing could cause many of Harvey Weinstein’s accusers to receive pennies on the dollar relative to what they are owed under state and federal laws prohibiting workplace sexual harassment, say Matthew LaGarde and Jessica Westerman of Katz Marshall & Banks LLP.

  • Knowledge Lawyers Can Help Firms Stay Ahead Of The Curve

    Vanessa Pinto Villa

    In a profession notoriously averse to change, it should come as no surprise that there is skepticism about the value of having attorneys perform nonbillable tasks. But U.S. law firms have slowly begun to incorporate knowledge lawyers into their operations — and the trend is likely to continue, says Vanessa Pinto Villa of Hogan Lovells.

  • An Unprecedented Look Inside The FARA Unit

    Brian Fleming

    For close observers of the Foreign Agents Registration Act, the June 8 release by the U.S. Department of Justice of over 50 FARA advisory opinions was a watershed. These opinions offer an unprecedented glimpse into how the FARA Registration Unit interprets the law, say Brian Fleming and Andrew Herman of Miller & Chevalier Chtd.

  • Options For Failing Marijuana Cos. And Their Creditors

    Brett Theisen

    In the marijuana industry, there is ambiguity surrounding failing businesses because the product remains illegal under federal law. Brett Theisen of Gibbons PC identifies the credit risks associated with lending to, or working with, a marijuana business and highlights key state law solutions for both debtors and creditors.

  • Why Lawyers Shouldn't Accept Fees In Cryptocurrency: Part 2

    John Reed Stark

    The legal industry has already begun to feel the impact of anti-bribery and anti-money laundering requirements. When involved with cryptocurrency trading and remittance, law firms face more than the risk of being perceived as organizations that support money laundering practices, says John Reed Stark of John Reed Stark Consulting LLC.

  • A Growing Divide On Trademark License Rights In Bankruptcy

    Luke Barefoot

    The U.S. Supreme Court has been asked to clarify in the case of Tempnology the extent to which trademark license rights survive rejection in bankruptcy proceedings. In the meantime, licensees face continued uncertainty on their ability to use licensed trademarks following rejection, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Why Lawyers Shouldn't Accept Fees In Cryptocurrency: Part 1

    John Reed Stark

    Law firms are increasingly accepting cryptocurrency as payment for services. While this might seem innovative and forward-thinking, ironically it is much more of a throwback, says John Reed Stark of John Reed Stark Consulting LLC.

  • A Valuable Precedent On Bankruptcy Vote Designation

    Steven Wilamowsky

    The Ninth Circuit's opinion in Fagerdala represents one of very few circuit-level decisions that touch on vote designation under Section 1126(e) of the Bankruptcy Code — and the severest limit to date upon its application, say Steven Wilamowsky and Laura Appleby of Chapman and Cutler LLP.