A Virginia bankruptcy judge on Thursday officially authorized Toys R Us Inc. to wind down its U.S. operations and close over 700 stores, giving the iconic retailer until June 30 to empty store shelves and maximize returns, on the same day the company's founder passed away.
A Florida private equity firm cannot take priority over the U.S. Securities and Exchange Commission to recover nearly $4 million it was owed by a cash-strapped company being turned over to the government to satisfy a court judgment, a federal judge in Boston ruled from the bench Thursday.
U.S. Treasury Secretary Steven Mnuchin and Puerto Rico Gov. Ricardo Rossello announced Thursday that they have reached an agreement to ease the bankrupt U.S. territory's access to a $4.9 billion community disaster loan.
The unsecured creditors committee of defunct metal fabricator Constellation Enterprises LLC will not get another shot at undoing a bankruptcy resolution that cut them out of a recovery, a Delaware federal court ruled Thursday, finding that when the case was converted to a liquidation afterwards, the committee “automatically dissolved and ceased to exist.”
Pennsylvania tax officials on Wednesday withdrew their objection to Philadelphia Energy Solutions LLC's fast-track prepack Chapter 11 plan, saying the oil refinery agreed to amend the plan to preserve the state’s right to collect on a $3.8 billion tax claim.
Michigan residents suing General Motors over groundwater contamination urged a New York bankruptcy court on Wednesday not to curtail their claims, saying their due process rights were violated when, despite the car company’s prebankruptcy knowledge of the issue, they weren’t notified about proceedings that would affect their rights.
A New York federal judge on Tuesday dismissed a proposed class action alleging Citibank NA failed to properly oversee investments in certain residential mortgage-backed securities, saying the bankruptcy of the companies that sold and serviced the securities had blocked the bank from taking steps that might have helped investors.
A bankruptcy spawned by the still unfolding Harvey Weinstein scandal has driven seven BigLaw firms into unaccustomed roles as last-paid instead of first in The Weinstein Co.'s cash-poor Chapter 11, with Boies Schiller & Flexner LLC accounting for half of the group's $20.6 million in claims.
A group of debtholders have hit iHeart Media Inc. with an adversary proceeding in the media giant’s bankruptcy case, alleging the company has orchestrated a secret, “fraudulent and otherwise wrongful” scheme to shortchange them in its proposed restructuring plan.
Two minority lenders under a $325 million debtor-in-possession financing package to bankrupt specialty paper maker Appvion Inc. objected Wednesday to final approval of a second $100 million postpetition loan, saying it will prime their secured liens and violate their rights under the earlier credit agreements.
UBS Securities LLC doesn’t have to return $14.4 million that it received when it emptied out its account with failed investment firm Sentinel Management Group Inc. several months before its collapse in 2007, an Illinois federal judge ruled Tuesday, halting a nearly decadelong effort by Sentinel’s trustee to claw back the funds.
A creditor of bankrupt health supplement retailer Vitamin World Inc. on Wednesday asked the Delaware bankruptcy court to convert the company’s Chapter 11 case to a Chapter 7, saying the company has no assets and no chance of rehabilitation.
Weil Gotshal & Manges LLP on Tuesday sought to reassure a New York bankruptcy court that the firm has no conflicts of interest as counsel for Chapter 11 debtor Breitburn Energy Partners LP and that its representation of a party affiliated with a large creditor is unrelated.
The Ninth Circuit on Wednesday refused to revive several employee benefit trust funds’ ERISA claims against two officers of a glass and glazing company in their suit seeking unpaid contributions allegedly owed under labor agreements governing benefit plans they managed for the company.
Knowing the California Supreme Court’s decision would have broad ramifications for the legal industry, attorneys for Jones Day and Orrick Herrington & Sutcliffe LLP beat a clawback bid by the bankruptcy trustee of Heller Ehrman by arguing a core principle: A defunct law firm doesn’t have a property interest in hourly matters continued by a dissolved firm’s former partners.
The federal government objected late Tuesday in Delaware to the proposed Chapter 11 plan of refinery operator PES Holdings LLC, saying the plan cannot be confirmed for numerous reasons related to its treatment of creditors and the lack of information about claims against the debtor.
The Chapter 7 trustee in the bankruptcy of Chicago's Yellow Cab Affiliation Inc. Tuesday said the claims that his suit accusing its officers of stashing assets contains too many false allegations are themselves inaccurate misdirection.
A New York bankruptcy judge overrode objections from a Teamsters pension fund and approved a settlement between bankrupt regional grocery chain Tops Markets LLC and its chief supplier, saying there was no evidence of insider dealing and that the math was in the insolvent company’s favor.
The Consumer Financial Protection Bureau urged the Ninth Circuit on Monday to reject a law firm’s challenge to a subpoena, saying the firm's argument that CFPB directors serve allegedly unconstitutional terms that can't be cut short is moot, because the agency’s current acting director can be ousted by the president at will.
A request by reorganized debtor Millennium Lab Holdings II LLC to close its Chapter 11 cases received court approval Tuesday, but a Delaware bankruptcy judge declined to make the decision retroactive in an effort by the debtor to avoid increased fees.
The Eighth Circuit’s decision in Dahlin v. Lyondell Chemical Co., addressing what a debtor needs to include in a claim bar date notice to unknown creditors, makes clear that due process in the notice context is rooted in reasonableness, say Robert Millner and Geoffrey Miller of Dentons.
Since passage of the Trump tax plan last year, companies have been touting bonuses they’ve handed down to rank-and-file employees. This highlights the trend of employers favoring bonuses over pay raises in the belief that variable, short-term rewards are less risky to the business than permanent increases in labor costs. But law firms have been using this strategy for years — and there are dangers, says Michael Moradzadeh of Rimon PC.
Over the past few years, forward-thinking law firms have expanded their talent pools to include a chief innovation officer, whose responsibilities include spearheading the implementation of technology. It is a smart move, says Mark Williamson, co-founder and chief technology officer at Hanzo Archives Ltd.
Equity security holders are increasingly requesting the appointment of official equity committees to represent their interests in bankruptcy cases. Shivani Shah of Norton Rose Fulbright examines the bases for such appointments and the standard that courts apply in evaluating such requests.
Just last month, a number of legal groups asked the Northern District of California to strike its rule requiring that, before seeking federal court admission, attorneys first be licensed by the state of California. It is irrational to exclude seasoned federal practitioners from general admission due to state bar approval while allowing raw state lawyers who have never been inside a federal courtroom, says attorney EJ Hurst.
The decision by Venezuela’s state-owned oil company PDVSA to pursue claims in the U.S. over an alleged bribery scheme raises a number of legal and strategic issues not just for the defendants named in the suit, but also for PDVSA’s bondholders and creditors of the republic, say Richard Cooper and Boaz Morag of Cleary Gottlieb Steen & Hamilton LLP.
There's no reason for limiting unbundled legal services to family law or even pro se litigants. Wider adoption, especially by litigators, presents an opportunity to correct law's distribution and pricing problem, to make justice practically available to all, and to dethrone litigation as the "sport of kings," says New York-based trial lawyer David Wallace.
Given the mainstream use of bitcoin and the “staying power” of this cryptocurrency, bankruptcy practitioners need to prepare to see bitcoin as part of the assets in future bankruptcy cases. The volatility of bitcoin value, however, will require bankruptcy courts and parties to come up with creative solutions, say Erin Illman and Robert Cox of Bradley Arant Boult Cummings LLP.
Like medical professionals, lawyers often resist policies to reduce errors due to the culture of perfectionism that permeates the industry. Autonomy is key to the legal professional's prestige and the outward demonstration of competence is key to maintaining autonomy, says Peter Norman of Winnieware LLC.
The U.S. Supreme Court last week held in Village at Lakeridge that the appropriate standard for determining nonstatutory insider status in bankruptcy is the clearly erroneous standard that was applied by the Ninth Circuit. But the concurring opinions, which address an issue that was not before the court, appear to be more significant, say Steven Wilamowsky and Aaron Krieger of Chapman and Cutler LLP.