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Bankruptcy

  • June 25, 2019

    Insurer Escapes $870K Med Mal Judgment On Appeal

    An insurance company is not responsible for paying $870,000 to a widow who won a jury verdict in a wrongful death suit against a doctor because the carrier had previously rescinded the physician's coverage, a Missouri appeals court ruled Tuesday.

  • June 25, 2019

    'Superbug' Firm Gets Ch. 11 Sale OK'd, Will Sell More Assets

    A Delaware judge gave his nod Tuesday to superbug-fighting pharmaceutical company Achaogen's Chapter 11 sale of some equipment and a tentative OK to sell an antibody program, as the more lucrative sale of other assets was kicked to another day.

  • June 25, 2019

    Drilling Rig Maker Faces Heat Over Insider’s Ch. 11 Roles

    Drilling rig maker Schramm Inc. found itself locked in battle on its first day in Delaware bankruptcy court Tuesday after a creditor drew out testimony that a judge said raised questions about an insider's financing and roles in the case.

  • June 25, 2019

    Relativity Media Trustee Wants To Subpoena Ex-CEO, 3 Others

    Relativity Media LLC's liquidating trustee has asked a New York bankruptcy court for permission to subpoena the defunct movie studio's former top brass, saying he believes they may have misused "corporate assets for personal benefit" and committed other wrongdoings.

  • June 25, 2019

    Platinum Execs Told Flood Of Lies To Investors, Jury Hears

    A federal jury in Brooklyn on Tuesday heard of how the former top executives of Platinum Partners schemed with a dozen other co-conspirators tied to the hedge fund manager to defraud existing and prospective investors by telling lie after lie about a liquidity crisis at Platinum’s flagship fund.

  • June 25, 2019

    PG&E Bondholders Propose $30B Ch. 11 Plan

    A group of Pacific Gas and Electric noteholders told a California bankruptcy court Tuesday that the utility has had enough time to present its Chapter 11 plan and that they should be allowed to put forward their own $30 billion proposal to turn the company around.

  • June 25, 2019

    McKinsey Draws More Heat With New App In Coal Co. Ch. 11

    A mine worker's union, the federal bankruptcy watchdog and implacable foe Jay Alix have all objected to McKinsey & Co.'s proposed re-submission of an application to assist Westmoreland Coal Co. with its since-completed $1.4 billion restructuring, with Alix blasting the request as yet another episode of McKinsey's "disclosure kabuki."

  • June 25, 2019

    Air Bed Co. Wants Sears' Ch. 11 Stay Lifted For Patent Suit

    A Taiwan-based inflatable mattress manufacturer on Monday asked a New York bankruptcy court to lift Sears’ Chapter 11 stay so it could pursue patent claims over the sale of allegedly infringing air beds that include a built-in air pump.

  • June 25, 2019

    Big-Fish Investor Calls $50M Premium Point Loss 'Shocking'

    A Skybridge Capital executive who heavily staked fallen mortgage-debt hedge fund Premium Point Investments over five years told a Manhattan jury Tuesday that Premium Point CEO Anilesh "Neil" Ahuja was positive right up until a "shocking" 2016 writedown that cost Skybridge more than $50 million.

  • June 25, 2019

    Orchids Paper Ch. 11 Auction Can Proceed, Del. Judge Says

    A Delaware bankruptcy judge on Tuesday rejected a call by unsecured creditors to bar or limit an offer by the private equity-backed lender serving as Orchids Paper Products Co.’s stalking horse to use prepetition debt to purchase the company's assets at auction Thursday.

  • June 25, 2019

    Subcontractors Can't Get Maritime Lien, High Court Told

    ING Bank is asking the U.S. Supreme Court to let stand a Fifth Circuit ruling that marine fueling subcontractors are not entitled to liens on the ships they refuel, saying both the law and the courts are clearly on its side.

  • June 25, 2019

    Hospital Bed Maker Joerns Files Ch. 11 To Cut $320M In Debt

    Joerns Healthcare filed for Chapter 11 in Delaware bankruptcy court on Tuesday, seeking to cut $320 million of its $400 million debt load with a debt-to-equity swap that forms the core of a prepackaged restructuring plan.

  • June 25, 2019

    FTD's Ch. 11 Sale Timeline, Employee Bonuses OK'd In Del.

    Bankrupt flower retailer FTD Companies Inc. received court approval Tuesday in Delaware for its proposed sale timeline and employee bonus plans after telling the court it had finalized asset purchase agreements with stalking horse bidders and reduced the bonus pool for critical workers.

  • June 24, 2019

    High Court Won't Hear Challenge To Cy Pres Mechanism

    The U.S. Supreme Court on Monday declined to hear a challenge to an arrangement that steered leftover class action settlement funds to universities instead of class members, after remanding a similar "cy pres" privacy deal in March on standing issues.

  • June 24, 2019

    Borrowers Reach $12M Deal In 3 Tribe-Linked Loan Suits

    Consumers in three related proposed class actions accusing tribe-linked lenders of charging excessively high interest rates have urged a Virginia federal court to approve a $12.35 million settlement they say resolves all of their claims.

  • June 24, 2019

    McKinsey Critic Denied Probe In SunEdison Ch. 11

    Restructuring pro Jay Alix's longshot bid to investigate rival McKinsey & Co.'s alleged conflicts of interest in the multibillion-dollar SunEdison Inc. restructuring has hit a dead end, after a New York bankruptcy judge found Alix doesn't have standing to bring a claim for "fraud on the court."

  • June 24, 2019

    FTD Says Ch. 11 Bonus Plan Includes Difficult Benchmarks

    Bankrupt flower retailer FTD Companies Inc. countered an objection to its Chapter 11 incentive bonus plan Monday, saying the performance benchmarks included in the proposal were difficult to achieve for its insider employees.

  • June 24, 2019

    Takata Wants $7.5M From Airbag Part Supplier Over Defects

    Takata Corp.'s bankruptcy estate sued airbag inflator supplier ARC Automotive Inc. in Delaware's bankruptcy court on Monday, seeking at least $7.5 million for ARC's alleged sales of defective parts that triggered a major General Motors Corp. safety recall.

  • June 24, 2019

    Shearman & Sterling Adds Texas Bankruptcy Pro

    Shearman & Sterling LLP has hired a Texas bankruptcy pro from Baker Botts LLP, a move that comes amid an ongoing expansion across the nearly 1,000-attorney firm.

  • June 24, 2019

    Hexion's $3.8B Ch. 11 Plan OK'd After Settlement Battle

    A Delaware bankruptcy court confirmed specialty chemical maker Hexion's plan to shed some $2 billion in debt Monday after a final round of arguments over the reach of a prepetition settlement and the imposition of liability releases without creditor consent.

  • June 24, 2019

    Mine Owner Can't Escape $2M Tab For Cleanup At W.Va. Site

    A West Virginia federal judge said Monday a company that took over mines and environmental liabilities from bankrupt Patriot Coal Corp. can't wiggle out of its obligation to pay nearly $2 million owed to an environmental group to assist with restoration efforts.

  • June 24, 2019

    Platinum Was On The Up-And-Up, Jury Told As Defense Wraps

    Counsel for former top executives of Platinum Partners on Monday rested their cases in the securities fraud trial over whether the hedge funders defrauded their investors as well as bondholders in an oil and gas company, with jurors hearing how auditors described Platinum as an aboveboard operation.

  • June 24, 2019

    Orchids Paper Says Ch. 11 Sale Should Not Be 'Disrupted'

    Orchids Paper Products Co. and the private equity-backed lender serving as its stalking-horse bidder told the Delaware bankruptcy court Monday it should reject a "baseless" effort by unsecured creditors to stall the sale of the company's assets.

  • June 24, 2019

    Wholesaler Tara Jewels Files For Chapter 11

    Gemstone wholesaler Tara Jewels LLC has filed for Chapter 11 protection in a New York bankruptcy court, claiming more than $10 million in liabilities.

  • June 24, 2019

    Depositions Barred In $14B Maxus Bankruptcy Suit

    A Delaware bankruptcy judge ruled Monday that Repsol SA and YPF SA cannot use depositions obtained as part of a New Jersey suit to defend a $14 billion environmental cleanup and fraudulent transfer suit brought by the litigation trust established under subsidiary Maxus Energy Corp.'s Chapter 11 plan.

Expert Analysis

  • Series

    Judging A Book: McMahon On 'Roosevelt For The Defense'

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    In "Theodore Roosevelt for the Defense," authors Dan Abrams and David Fisher meticulously chronicle the forgotten high-profile 1915 libel trial of Teddy Roosevelt, capturing the interesting legal customs of an era before things like notice pleading and pretrial discovery, says Chief U.S. District Judge Colleen McMahon of the Southern District of New York.

  • A Common Thread In High Court Bankruptcy Cases This Term

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    While the two significant bankruptcy cases from this U.S. Supreme Court term — Taggart v. Lorenzen and Mission Product Holdings v. Tempnology — may appear to involve entirely separate issues, there is a similarity in the cases that could illuminate something important about how the court views bankruptcy law, says Craig Goldblatt of WilmerHale.

  • 5 Ways Law Firms Can Improve Their Job Interviews

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    When evaluating potential new hires, law firms should utilize structured interviews in order to create a consistent rating system that accurately and effectively assesses candidates' skills and competencies, says Jennifer Henderson of Major Lindsey.

  • Series

    Why I Became A Lawyer: A Fateful Phone Call

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    When I was growing up, my mother was always the more mild-mannered parent. But during a trans-Atlantic phone call in 1991, when I told her I wanted to go to culinary school instead of law school, she started yelling — at a volume I had never heard from her, says Jason Brookner of Gray Reed.

  • Justices Setting New Standard For Discharged Debt Collection

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    Last week, in Taggart v. Lorenzen, the U.S. Supreme Court adopted a new, objective standard for when creditors attempting to collect a debt in violation of a discharge injunction may be sanctioned. However, the new standard likely will not have a large impact until a consensus emerges as to its application, says Tamar Dolcourt of Foley & Lardner.

  • Law Firms Can Do Better With Their Mentoring Programs

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    There are a few practical, proactive steps law firms can take to create a mentoring program that pays dividends — instead of creating a mediocre program that both parties see as an obligation, says Kate Sheikh of Major Lindsey & Africa.

  • How To Discharge Student Debt: A Look At The Brunner Test

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    The Bankruptcy Code allows a discharge of student debt for "undue hardship," but fails to define the term or give further guidance. In that silence, bankruptcy courts are now speaking, with a majority of circuit courts adopting a three-factor test, cited in practically every reported decision on the topic, says Steven Werth of SulmeyerKupetz.

  • 'Rocket Docket' Justifies Its Name For 11th Straight Year

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    The U.S. District Court for the Eastern District of Virginia “rocket docket” is still the fastest federal civil trial court in the country despite some recent trends causing its median time to trial to grow to 13.2 months, says Robert Tata of Hunton.

  • Measuring The Value Of A Law Firm's Social Media Efforts

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    Most legal marketers struggle to show the return on investment of their social media efforts, but establishing and answering several key questions can help demonstrate exactly how social media programs contribute to a law firm's bottom line, say Guy Alvarez of Good2bSocial and communications consultant Tom Orewyler.

  • Collateral Descriptions May Need More Specific Drafting

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    For years, courts ruled that collateral descriptions in financing statements just needed to give enough notice to cause subsequent creditors to make further inquiry with the debtor, but there are signs that the “further inquiry doctrine” may not offer secured creditors as much protection as it once did, says Peter Beardsley of Loeb & Loeb.

  • Tax Court Case May Limit Debtor Options To Fix Tax Liability

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    If the recent U.S. Tax Court holding in Breland v. Commissioner stands, it will limit the usefulness of proof-of-claim objections, leaving debtors to rely on Section 505 motions to fix the amount of their tax liabilities, says Brad Jones of Odin Feldman.

  • High Court Places Heavy Burden On Bankrupt TM Licensors

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    Last week’s U.S. Supreme Court ruling in Mission Product Holdings v. Tempnology will lead to additional hardship for debtor-licensors, who now must — from the outset of insolvency — decide whether their trademark assets are worth keeping and, if so, how to fund their continued enforcement, says Geoffrey Lottenberg of Berger Singerman.

  • Opinion

    Millennials Are Pushing Back Against Law Firm Sexism

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    A recent survey of millennial attorneys shows men and women are having very different BigLaw experiences, but share similar goals. It's imperative that partners recognize that they’re the ones in a position to change the culture, says Michelle Fivel of Major Lindsey.

  • 3 Law Firm Business Tactics To Support A Niche Practice

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    Once you've chosen a strategy for your law firm, what tactics will promote success? There are three tactical areas important to all firms, regardless of specialty or size, but particularly critical for today’s niche firms, say Yussuf Aleem and Jacob Slowik of Joseph Aleem.

  • Real-Life Lessons For Lawyers From 'Game Of Thrones'

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    What lessons can the various hands, maesters, council members and other advisers in "Game of Thrones" impart to real-life lawyers? Quite a few, if we assume that the Model Rules of Professional Conduct were adopted by the Seven Kingdoms, says Edward Reich of Dentons.