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Bankruptcy

  • July 20, 2018

    Oaktree To Counter Top Bidder In Claire’s Del. Ch. 11

    Private equity firm Oaktree Capital Management LP reported Friday it intends to top the current best offer for bankrupt Claire’s Inc., potentially disrupting what until now has been a pre-arranged but hotly contested plan to hand the retail jewelry and accessories chain to its first-lien lenders.

  • July 20, 2018

    Weinstein Judge Lets 'Children Of The Corn' Suit Go Ahead

    A Delaware bankruptcy judge on Thursday lifted a Chapter 11 stay clearing the way for a movie producer to resume his lawsuit in California federal court against The Weinstein Co. disputing sequel, remake and spinoff rights to the 1984 horror film “Children of the Corn.”

  • July 20, 2018

    House Panel Wants To Grill Puerto Rico Gov. On PREPA Crisis

    The U.S. House Committee on Natural Resources asked the governor of Puerto Rico on Thursday to send an administration official to speak at an upcoming panel hearing on mismanagement at the island's troubled electric utility, the Puerto Rico Electric Power Authority, amid mass turnover at the top.

  • July 20, 2018

    Gibson Brands Lender Wants Better Ch. 11 Sale Effort

    A major creditor to bankrupt guitar maker Gibson Brands Inc. objected Friday to the company’s disclosure statement and vote solicitation plan in its Delaware Chapter 11 case, arguing the company had failed to market the business properly and offering to help fund a market check.

  • July 20, 2018

    Gov't To Pay Cenveo $5.5M Over Pulled Census Contract

    Bankrupt envelope and printed product manufacturer Cenveo has asked a New York bankruptcy court to approve a settlement that would see the federal government pay $5.5 million to terminate a contract related to the 2020 U.S. Census.

  • July 20, 2018

    7th Circ. Refuses To Revive Suits Against Debt Collectors

    An assertion that a tax consequence “may” happen is not the same as a declaration that it “will,” a Seventh Circuit panel has ruled, upholding the dismissals of two individuals' suits against debt collection firms for a perceived implication about their forgiven debt.

  • July 20, 2018

    BCBS Affiliates Say Venue Still Wrong In ERISA Suit

    Numerous Blue Cross Blue Shield affiliates urged a Texas federal judge to toss an amended suit accusing them of flouting the Employee Retirement Income Security Act by denying or reducing reimbursements for certain out-of-network claims, arguing that the hospitals failed to fix the venue issues found in their first complaint.

  • July 19, 2018

    Rehab Co. Gets Nod For $65M Ch. 11 Sale To Stalking Horse

    A Delaware bankruptcy judge Thursday approved the $65 million sale of the drug and alcohol treatment facility network EBH TopCo LLC to its senior secured lender and stalking horse bidder after a deal was struck with the official unsecured creditors committee, which had challenged the sale.

  • July 19, 2018

    GM Ch. 11 Judge Undecided On $1B Ignition Switch Deal

    The judge presiding over the bankruptcy case for General Motors LLC’s predecessor said Thursday he’s not yet decided on whether class certification is needed for him to approve a proposed Chapter 11 settlement over legacy ignition switch lawsuits that could possibly cost the carmaker $1 billion in new stock.

  • July 19, 2018

    M&G Offers $6M Deal For Int'l Co. Exits From Del. Ch. 11

    Plastics maker M&G USA Corp. reported a tentative, $6 million Delaware bankruptcy court deal Thursday to end unsecured creditor committee opposition to a Chapter 11 dismissal for three Luxembourg-based M&G affiliates, while another battle raged on over alleged ulterior motives for the exit.

  • July 19, 2018

    Investors Sue Kleiner Perkins, I-Bankers Over Fisker Loss

    A group of investors who claim they were conned into buying shares in electric car manufacturer Fisker Automotive just before it filed for bankruptcy have sued the company’s former executives, venture capital firm Kleiner Perkins and the leaders of a now-defunct Chicago investment banking firm in Illinois state court.

  • July 19, 2018

    Toys R Us Inks $180M Creditor Deal To Ease Wind-Down

    Toys R Us on Tuesday told a Virginia bankruptcy court that it has reached a settlement with the holders of the majority of its U.S. debt that will guarantee $180 million for administrative claim holders and smooth the way to its Chapter 11 liquidation.

  • July 19, 2018

    Woodbridge Noteholders' Elder Abuse Claim Could Top $2B

    Attorneys representing a group of noteholders of bankrupt real estate developer The Woodbridge Group LLC announced Thursday that they added claims for elder abuse in their adversary complaint against the debtors that could balloon the claims of the noteholders above $2 billion.

  • July 19, 2018

    One-Off Error Not Grounds For FCRA Suit, Equifax Says

    Equifax has said a customer accusing it of letting her bankruptcy “slip through the cracks” and failing to report discharged debts was a one-off error rather than a willful violation of the Fair Credit Reporting Act, telling a California federal judge on Wednesday to give her proposed putative class action the boot.

  • July 18, 2018

    BakerHostetler Closing On $1B Fee Mark For Madoff Case

    BakerHostetler, lead counsel for the trustee of Bernie Madoff's defunct investment firm, received an endorsement on Wednesday to collect just over $30 million in interim professional fees, which would put the firm's awarded compensation at just over $1 billion for nearly a decade of work on the case.

  • July 18, 2018

    US Trustee Questioned Over McKinsey’s Conflict Disclosures

    The director of the federal program that monitors U.S. bankruptcy cases was recently asked by a Republican congressman to answer questions about how his office enforces requirements on professional advisers to reveal conflicts of interest, citing a recent report that McKinsey & Co. has a pattern of making very few disclosures.

  • July 18, 2018

    Half-Built Fla. Resort Gets OK For Bankruptcy Auction

    A stalled Fort Lauderdale resort partially built with $30 million from the EB-5 immigrant investor visa program will be auctioned off next month after a Florida bankruptcy judge on Wednesday approved bidding procedures for the property, which has attracted a $39.1 million initial bid. 

  • July 18, 2018

    Boston Herald Can't Give Reporters Libel Releases In Ch. 11

    Third-party releases proposed under the Chapter 11 plan of Herald Media Holdings Inc. aimed at protecting reporters and other editorial employees from defamation and libel suits failed to gain court approval Wednesday when a bankruptcy judge determined the employees weren’t contributing enough to the case to justify the releases.

  • July 18, 2018

    Lehman Can Enforce Unsigned Deal In 'Close Case': 2nd Circ.

    In a “close case,” the Second Circuit on Wednesday rejected an effort by Shinhan Bank to slip an unsigned settlement it reached with Lehman Brothers Holdings Inc., saying some factors weighed against enforcing the deal but that the weight of the evidence cut in favor of Lehman’s position.

  • July 18, 2018

    M&G Creditors Balk At Proposed Ch. 11 Exit For Int’l Units

    Creditors of bankrupt chemical producer M&G USA Corp. pressed the company’s top international officer Wednesday on his motives for seeking dismissal of three Luxembourg-based affiliates from a larger Delaware Chapter 11, saying the move could cost the U.S. estate $40 million.

Expert Analysis

  • How NJ Law Protects Tenants By The Entirety

    Bruce Buechler

    A New Jersey state appellate court's decision in Jimenez v. Jimenez shows that when dealing with property owned by a husband and wife as tenants by the entirety, New Jersey law can impose very serious ramifications on a judgment creditor’s efforts to collect or levy on that property, says Bruce Buechler of Lowenstein Sandler LLP.

  • 3 Cautionary Tales For Buyers Of Bankruptcy Claims

    Nancy Peterman

    Courts have usually provided little guidance regarding problems that might affect the use of claims purchased in bankruptcy cases for strategic reasons. With three recent decisions, this dynamic has begun to change, say Nancy Peterman and John Elrod of Greenberg Traurig LLP.

  • New Privacy Laws' Unintended Impact On Bankruptcy Sales

    Walt Sapronov

    When the next downturn occurs, bankruptcies and opportunities for investors to pick up distressed assets on the cheap will follow. Where those assets include customer lists or other personal information protected by new privacy laws in the EU and California, those sales will become more difficult, say Walt Sapronov and Paul Kouroupas of Sapronov & Associates PC.

  • What Kavanaugh's Writing Tells Us About His Personality

    Matthew Hall

    People with certain personality traits tend to use certain words. A computer analysis of Judge Brett Kavanaugh’s D.C. Circuit opinions reveals that he is highly extraverted, which means that he would be a prominent voice on the U.S. Supreme Court, says Matthew Hall, a professor at the University of Notre Dame.

  • Roundup

    Cities In Distress

    Cities in Distress

    Five years after the city of Detroit filed for Chapter 9 bankruptcy, experts look at the financial troubles of Chicago and other U.S. cities in this special series.

  • Opinion

    3 Pros, 3 Cons Of Litigation Finance

    Ralph Sutton

    An educated guess puts the number of new litigation funders launched in the past 18 months at 30 — an astonishing number, with more to come. Is this a blessing to our legal system or something more akin to tulip mania? Maybe both, says Ralph Sutton, founder and CEO of litigation funding firm Validity Finance LLC.

  • Series

    Cities In Distress: Municipal Recovery Lessons From Pa.

    Juliet Moringiello

    As we reflect on the five years since Detroit’s bankruptcy filing, Pennsylvania’s experience in intervening in its municipalities’ financial distress provides some useful insights on the problems plaguing municipalities as well as lessons for states, says professor Juliet Moringiello of Widener University Commonwealth Law School.

  • Modern Communication Brings E-Discovery Challenges

    Thomas Bonk

    As new communications platforms displace email, the legal industry is awkwardly grappling with complex e-discovery questions. Fortunately, this environment provides a very fertile ground of incentives for innovation in both e-discovery technology and service offerings, says Thomas Bonk of Epiq.

  • Series

    Cities In Distress: Michigan's Emergency Mgr. Law And Flint

    Eric Scorsone

    Michigan has taken a very aggressive approach to addressing municipal fiscal insolvency. But the state's emergency manager law fails to consider the unintended consequences of short-term financial adjustments, as seen in the case of Flint, say Eric Scorsone and Samantha Zinnes of Michigan State University.

  • Opinion

    It's Not All About The Benjamins, Baby (Lawyer)

    J.B. Heaton

    Notwithstanding the latest salary war among prominent law firms, I urge my middle-aged and older colleagues to help the recent graduates we know focus on the long term. Even if the salary is the same, there is a big difference between an institutional firm and the relatively younger firms matching BigLaw, says J.B. Heaton, a University of Chicago business law fellow and former partner at Bartlit Beck.