A California bankruptcy judge on Wednesday appeared close to approving a multimillion-dollar settlement between Bank of America Corp. and a family that won a $46 million judgment after being plunged into “a Kafkaesque nightmare” by an illegal foreclosure, even as he derided the deal as a “hostage situation” in court.
Movie filtering service VidAngel Inc. filed for bankruptcy in Utah Wednesday saying that it owes its current and former subscribers $4.7 million in credit after a preliminary injunction was issued in a infringement suit brought by Walt Disney and other Hollywood studios.
Washington state-based sexual health and lingerie retailer Peekay Acquisition LLC secured interim approval in Delaware Wednesday for the company’s combined Chapter 11 disclosure and plan, an accelerated process largely built around a $30.7 million company sale to senior lenders.
A Delaware bankruptcy judge on Wednesday shot down a $25 million Chapter 11 debtor-in-possession loan deal sought by bankrupt Aerogroup International Inc., telling an attorney for the shoe producer and retailer that “the terms proposed are a nonstarter for me.”
A private equity fund sitting on a $66 million class action judgment against now-bankrupt ChinaCast Education Corp. may be able to sue the debtors’ insurers for payment without stepping on the toes of the company or other creditors, a New York bankruptcy judge observed Wednesday, encouraging the sparring parties to negotiate.
Bankrupt supplement retailer Vitamin World Inc. told a Delaware judge Wednesday that it was going to delay final approval of its $25 million debtor-in-possession financing package to allow for continued discussions with unsecured creditors and the lenders.
A former General Motors LLC employee can’t pursue claims against the company that its employees' allegedly false testimony contributed to his wrongful rape conviction, since New GM isn’t liable for alleged misconduct that occurred under Old GM, a New York bankruptcy judge said Wednesday.
The Third Circuit determined Wednesday that a New Jersey bankruptcy court was right to throw out a $30 million judgment against a Wall Street stockbroker accused of fraud, saying in its precedential ruling that the investors’ attorney had deliberately withheld key information about a separate settlement.
The owner of Romano’s Macaroni Grill casual restaurant chain filed for Chapter 11 protection in Delaware on Wednesday with a support agreement from its largest creditors in hand that aims to reorganize the company as a going concern and slash some of its roughly $30 million in secured debt.
Local, state and federal authorities Tuesday asked the Delaware bankruptcy court to deny Venoco LLC permission to abandon two California oil pipelines and more than a dozen offshore and onshore drilling operations, saying the company has not taken the steps to safely shut them down.
A Connecticut bankruptcy judge granted minor sanctions Tuesday against a music producer and manager who tried to pursue copyright litigation against rapper 50 Cent over a hit song even as he was under the protection of bankruptcy, saying the violation was knowing and purposeful.
Two former Dewey & LeBoeuf LLP support pros who admitted to misdemeanor offenses and testified against the fallen firm's three top ex-executives were freed from the BigLaw criminal saga Tuesday by a New York state judge, who credited their cooperation.
Tobacco giant Reynolds American Inc. on Tuesday fought back against an investigation by the Chapter 7 trustee for bankrupt e-cigarette maker NJOY Inc., telling a Delaware bankruptcy court it is not a creditor, had next to no relationship with NJOY and has already turned over all requested documents.
A Bernie Madoff relative at the center of a Chapter 11 clawback suit waived attorney-client privilege over an email he received from his lawyer by forwarding it to the incarcerated Ponzi schemer, a New York bankruptcy judge said Tuesday in an opinion that shielded other case files sent to Madoff.
Automakers that are funding the Takata Corp. bankruptcy have been “stonewalling” on discovery to let case deadlines pass and ultimately sidestep liability connected to the defective air-bag inflators that sparked Takata's Chapter 11, the official tort claimants committee said late Monday.
Bankrupt soup purveyor The Original Soupman Inc. asked a Delaware judge to convert its case to a Chapter 7 liquidation Tuesday, saying the company has shut down operations and has only a few assets remaining since a September sale.
After winning a $66 million judgment against now-bankrupt ChinaCast Education Corp., private equity fund Jayhawk continued fighting Monday for payments from ChinaCast insurers, telling a New York bankruptcy judge its pursuit is not an “asset grab” but the logical outcome of the situation.
Insurer Confie Seguros Holding II Co. is urging an Illinois federal court to greenlight its securities fraud suit against the owners of an auto insurance network, brushing aside motions to dismiss and calling the $100 million scheme “so blatant” that Hollywood would reject it as "too outrageous" if it were a movie script.
The U.S. government on Monday backed efforts to appeal a bankruptcy court's valuations of General Motors' assets in a clawback case over a $1.5 billion GM term loan, noting its interest in maximizing recoveries for the federally supported estate.
A suspended lawyer convicted of tax fraud has challenged a California federal magistrate judge’s finding that he still owes more than $1 million in back taxes and penalties, arguing the holding violated his due process rights.
Today's law firm chief financial officer should be involved in many areas beyond traditional financial management, including operations, risk management and information technology. He or she can support strategic planning throughout the process, from development of the plan to its implementation, measurement and eventual evolution, say Tyler Quinn and Marc Feigelson of Kaufman Rossin PA.
Clients are beginning to expect and demand that their external lawyers provide advice tailored to the client's industry. Aside from this, law firms should want to move toward a sector approach because industry-focused groups are a natural place for cross-practice collaboration to flourish, say Heidi Gardner and Anusia Gillespie of Harvard Law School.
The Delaware bankruptcy court’s recent decision in Energy Future Holdings, granting a motion to reconsider a decision it made over a year ago and denying a breakup fee it had previously approved, is at once troubling and instructive, say Steven Wilamowsky and Sara Ghadiri of Chapman and Cutler LLP.
In their new book, "The Judge: 26 Machiavellian Lessons," do Ronald Collins and David Skover prove their thesis that hypocrisy is the key to judicial greatness? Some of the examples they present are hard to dispute, says Judge Alex Kozinski of the Ninth Circuit.
Financial Crisis Anniversary
After nearly a decade of recession-accelerated change in the legal industry, “merit-based” compensation has largely come to mean measuring attorney success using some combination of origination and working attorney hours metrics. However, there are signs that the real impact of the recession is still around the corner, and that building a book isn’t enough, says Peter Zeughauser of Zeughauser Group.
While it lends more than $100 million each year to our nation’s college students — including law students — the U.S. Department of Education surprisingly limits loan counseling to one-time entrance counseling for first-time student borrowers. Is this rational? asks Christopher Chapman, president of AccessLex Institute, a nonprofit focused on access to legal education.
New regulations approved by the Federal Reserve and the Federal Deposit Insurance Corp. will fundamentally change the playing field for end users or buy-side counterparties that engage in certain types of financial agreements with the world’s largest financial institutions. Here, attorneys with Arnold & Porter Kaye Scholer LLP break down the issues that parties to qualified financial contracts should consider as the rules go into effect.
When a debtor partner makes a motion to assume a partnership agreement, courts have disagreed on the appropriate legal standard — whether to apply the “actual” or “hypothetical” test. The split in the circuits on this question continues to lead to controversy, says Richard Epling, a retired partner at Pillsbury Winthrop Shaw Pittman LLP.
The shift to electronic filing has somewhat eased the task of reviewing briefs and their supporting files. An e-brief takes e-filing to the next level, says Christine Falcicchio, a principal at Strut Legal Inc.
As lenders and investors continue to experiment with creative structures to prevent a borrower’s bankruptcy filing, two recent bankruptcy court decisions in the cases of Lexington Hospitality Group and Squire Court Partners provide guidance on valid safeguards, say attorneys with Gibson Dunn & Crutcher LLP.