The trustee responsible for pursuing more than $1 billion worth of environmental negligence claims against recently reorganized Exide Technologies Inc. has hit back against the battery recycler’s bid to undo those claims in Delaware bankruptcy court, saying the court has no jurisdiction now that Exide has emerged from bankruptcy.
Aiming to shoot down an appeal stemming from its now-confirmed Chapter 11 bankruptcy plan, renewable energy giant SunEdison Inc. told a New York federal court this week that investors accusing the company of using an exit financing agreement to buy creditor support are improperly seeking to advance a “self-interested agenda.”
Bankrupt telecom giant Avaya Inc. became the 14th company to settle allegations that it infringed an Ethernet patent held by Network-1 Technologies Inc., agreeing to allow a $40 million unsecured claim against the estate, according to papers filed in New York bankruptcy court on Thursday.
Two lawyers who say their livelihoods were destroyed by the Consumer Financial Protection Bureau’s crackdown on debt-relief firm Morgan Drexen Inc. told a California federal court Thursday that there is no good reason to dismiss their $25 million suit against the regulator.
The federal bankruptcy watchdog has asked a New Jersey bankruptcy court to pull the plug on defunct children’s products manufacturer Kid Brands Inc., either by converting its Chapter 11 case to a Chapter 7 liquidation or by dismissing it altogether.
An Illinois bankruptcy judge on Thursday approved a state of Mississippi claim for $3.02 million in Caesars Entertainment Operating Co. Inc.'s Chapter 11 reorganization, giving final approval to the parties' settlement stemming from the state's original request for $26.95 million.
Loyal customers of Toys R Us were given reassurance Thursday that the bankrupt retail giant will make good on gift cards and other consumer-friendly deals after it received court permission to maintain its customer programs, shortly after gaining access to $2.2 billion in post-petition financing.
A bankrupt information technology company whose former top executives face criminal fraud charges for allegedly plundering their company’s accounts and trying to hide it won’t have to pay a cent under a settlement filed by the U.S. Securities and Exchange Commission in Illinois federal court on Wednesday.
The liquidating trustee of long-bankrupt Washington Mutual Inc. has hit back against Grant Thornton LLP’s bid for sanctions over an unpaid $5 million contingency fee, telling a Delaware bankruptcy judge the fee was only approved because the firm lied to the court at an earlier hearing.
The Federal Deposit Insurance Corp. asked a New York bankruptcy court Thursday to hit the snooze button on a suit filed by Lehman Brothers against Guaranty Bank over the sale of shoddy mortgages, saying Lehman must go through an administrative claims process first.
The liquidating trustee for an investment fund that fed into jailed attorney Scott Rothstein's $1.2 billion Ponzi scheme sued Harden & Associates on Wednesday, claiming the insurance broker's negligence led the fund's insurers to deny coverage after the scheme collapsed.
MF Global asked Wednesday for permission to appeal a New York bankruptcy court's order requiring the defunct brokerage to arbitrate in Bermuda a coverage dispute with its excess insurer, Allied World, saying the decision involves a controlling issue of law and conflicts with two appellate court rulings.
Caught short by a parent company’s failure to complete a $200 million post-confirmation Chapter 11 investment, Optima Specialty Steel Inc. on Wednesday launched a modified reorganization plan that erases the corporate parent’s equity.
While the future for Toys R Us Inc. looks uncertain now, the company’s performance over the crucial holiday season will go a long way toward determining its long-term prospects, with experts pointing to the timing of and rationale for the company's bankruptcy filings this week.
Holland & Knight LLP has agreed to pay $5 million to escape a malpractice suit brought by the bankruptcy trustee for a Miami hotel condominium project over its alleged failure to tell one of the condo project owners about the other’s planned fraud.
Greenberg Traurig LLP has agreed to pay $9.75 million to settle malpractice claims over its work for defunct loan originator and Ponzi scheme vehicle Mortgages Ltd. more than a decade ago, provided an Arizona bankruptcy court signs off on the deal.
An Illinois bankruptcy judge Wednesday ordered celebrity British chef Gordon Ramsay to turn over documents covering plans for restaurants with Caesars, saying that the television personality is at the center of a dispute involving the casino giant as it nears the end of its Chapter 11 saga.
The Second Circuit on Wednesday vacated a securities fraud conviction against the deceased former CEO of military body armor maker DHB Industries Inc. and let his estate off the hook for $91 million in restitution, but found his family can’t get back funds that were forfeited after the government found he was hiding assets.
The U.S. Department of Justice said in a letter to U.S. Rep. Vern Buchanan, R-Fla., that victims of fraudster Bernie Madoff would begin to receive payouts from the department's Assets Forfeiture Fund by the end of the year, the congressman announced Wednesday.
The trustee for Bernie Madoff’s defunct investment firm can proceed with a suit that seeks to claw back $2.2 million withdrawn by an investor before the $65 billion Ponzi scheme imploded, a New York bankruptcy court ruled on Wednesday.
Toys R Us recently filed for Chapter 11 bankruptcy, citing the impact of e-commerce as a major factor. Other recent retail bankruptcies underscore how difficult it is for retailers to recover from a bankruptcy filing, and creditors must be prepared, says Stephen Selbst of Herrick Feinstein LLP.
Payment collection delays have caused law firms to seek new options, one of which is litigation finance. In this context, litigation finance can offer alternative avenues to firms as they approach the end of a fiscal year or partnership distribution dates, says Travis Lenkner of Burford Capital LLC.
Imagine going to a restaurant and ordering your steak medium-rare. The steak arrives burned. You expect the kitchen to bring you another one properly done, right? And you don’t expect to pay for two steaks, do you? Paying a vendor for document review should be no different, says Lisa Prowse, an attorney and vice president at e-discovery firm BIA Inc.
Investors frequently talk about trying to find the next unicorn, that small startup company that is going to turn into a billion-dollar valuation. The New Jersey district court's recent decision in PNC Bank v. Star Group offers debtors counsel hope that a unicorn has finally arrived in the lender liability context, says Jerry Blanchard of Bryan Cave LLP.
The demise of Korea’s Hanjin Shipping Co. Ltd. was the largest bankruptcy of a container line in history, and recently resulted in the biggest ever court sale of ships in Hong Kong, totaling over $600 million. Hong Kong’s legal system makes it an ideal venue for ship mortgage enforcement, say attorneys with Mayer Brown JSM.
Although the Trump administration has completed the vetting and confirmation of a cabinet and White House staff, thousands of senior positions remain unfilled throughout the executive branch. More than ever, people selected for those posts find themselves under close scrutiny, say Adam Raviv and Reginald Brown of WilmerHale.
If the past year is any indication, landlords of bankrupt retail tenants may want to be especially mindful of Section 502(b)(6) of the Bankruptcy Code, which may limit their ability to recover certain damages, says Marshall Hogan of Foley & Lardner LLP.
In our recent survey of business of law professionals, nearly half of respondents said that who they collaborate with, inside their law firm, is different from five years ago, says Chris Cartrett of legal software provider Aderant.
The benefits of third-party releases to proponents of debt restructuring are obvious, but the release process also is subject to abuse or overreaching, and there are no clear boundaries beyond which plan proponents may not go, says Richard Epling, a retired partner at Pillsbury Winthrop Shaw Pittman LLP.
Some lawyers tend to be overly aggressive, regarding law practice as a zero-sum game in which there are only winners and losers. The best response is to act professionally — separating the matter at hand from the personalities. But it is also important to show resolve and not be vulnerable to intimidation, says Alan Hoffman of Husch Blackwell LLP.