Bankruptcy

  • October 18, 2019

    US Trustee Asks Court To Reject Emerge Liability Releases

    The U.S. Trustee's Office has objected to the litigation releases in bankrupt fracking sand miner Emerge Energy Services LP's plan for Chapter 11, saying they release an excessively-broad range of parties without the affirmative consent of creditors.

  • October 18, 2019

    Shumaker Loop Beats DQ Bid From Bankrupt Cancer Center

    A New York bankruptcy judge has refused to block Shumaker Loop from representing a group of ex-21st Century Oncology doctors embroiled in an antitrust dispute with the bankrupt cancer treatment chain, which argued the firm’s lawyers will need to testify over allegations they submitted false declarations, an attorney in the case said.

  • October 18, 2019

    $4M Refund Belongs To Bank, Not Parent, FDIC Tells Justices

    A $4.1 million tax refund rightfully belongs to a failed Colorado-based bank, not the bankruptcy estate of its corporate parent, the bank’s receiver, the Federal Deposit Insurance Corp., has told the U.S. Supreme Court.

  • October 18, 2019

    United Sporting Cos. Rips Into Objections Over Ch. 11 Plan

    United Sporting Cos. has come out swinging in support of a proposed Chapter 11 plan that would immunize creditors that lent it $250 million from future lawsuits, saying the only objection that matters was lodged by the private equity company that United and the creditors intend to sue under the plan.

  • October 18, 2019

    PG&E Bondholders, Wildfire Victims File Rival Ch. 11 Plan

    Pacific Gas & Electric Co. noteholders and wildfire victims have filed a joint alternative to the California utility’s own Chapter 11 plan that would give the noteholders control of the company and victims an additional $6 billion in potential compensation.

  • October 18, 2019

    Highland Capital Under Fire To Have Ch. 11 Trustee Take Over

    An attorney overseeing a former Highland Capital affiliate's Texas insolvency told a Delaware bankruptcy judge Friday she will likely press for appointment of a Chapter 11 trustee for Highland's newly filed case, citing a litany of fraudulent transfer allegations involving the company in both states.

  • October 17, 2019

    Law360's The Term: Puerto Rican Debt Crisis, DC Sniper

    On this episode of The Term, the team takes a look at two of the last cases that the U.S. Supreme Court heard in October, one involving Puerto Rico's historic $125 billion debt crisis and the other about the younger D.C. sniper's bid to reduce his life sentence.

  • October 17, 2019

    Creditors Slam $11B PG&E Proposal Over Calif. Wildfires

    Creditors blasted Pacific Gas and Electric's proposed settlement of subrogation claims stemming from California's 2017 and 2018 wildfires, saying it locks the bankrupt utility into an $11 billion payment to insurers no matter what direction the case takes in the future.

  • October 17, 2019

    $216M For Hurricane Work Due Despite Indictment, Co. Says

    A Mammoth Energy Services Inc. unit has told a Puerto Rico bankruptcy court that an indictment against its former president and a government inspection report shouldn't delay a $216 million payment for restoring electricity in the territory after Hurricane Maria.

  • October 17, 2019

    Chinese Tycoon's Creditor Wants His 'Sham' Ch. 11 Tossed

    A Shanghai-based company seeking to enforce a roughly $11 million arbitral award against Chinese tycoon Jia Yueting told the Delaware bankruptcy court Thursday that his personal Chapter 11 case should be tossed because it was filed in "bad faith" and flagrantly abuses bankruptcy law.

  • October 17, 2019

    Hinshaw Banks On Bankruptcy Pro From Lawrence Kamin

    Hinshaw & Culbertson LLP has picked up a new partner for its commercial transactions practice team, who is joining the firm's main office in Chicago from Lawrence Kamin LLC.

  • October 17, 2019

    Insys Exec Trial Fair Despite Alleged Weil Conflict, Judge Says

    A convicted former Insys Therapeutics Inc. executive "got a fair trial" despite Weil Gotshal & Manges LLP representing him during his criminal trial while guiding the company through its bankruptcy, a federal judge said following a fiery Thursday afternoon hearing over the alleged conflict.

  • October 17, 2019

    Ford Wants $1.7M In Fees For $53M Dealer Loan Fraud Win

    Ford's financing arm asked a Texas federal court Thursday for over $1.7 million in attorney fees two weeks after a jury found that the co-owner of a bankrupt chain of car dealerships owes it $53.7 million in damages for defaulting on loans.

  • October 17, 2019

    Fed. Circ. Revives Fight Over Sirius IP License Validity

    A judge in Delaware federal court acted too hastily when finding that Sirius XM didn't infringe a German company’s broadcasting patents because it had a license to use them, the Federal Circuit said Thursday.

  • October 17, 2019

    $3.3B FirstEnergy Ch. 11 Plan Gets Court Approval

    An Ohio bankruptcy judge has approved FirstEnergy Solutions Corp.'s $3.3 billion Chapter 11 plan after the company agreed to assume union contracts that had held up plan approval in August.

  • October 17, 2019

    Joint Employer Key Food Can't Dodge Bargaining, NLRB Says

    Supermarket chain Key Food qualifies as a joint employer of workers at nine former A&P grocery stores now under its corporate umbrella and can’t avoid bargaining with their union, the National Labor Relations Board ruled, citing its controversial Browning-Ferris joint employer test.

  • October 17, 2019

    Barneys Reaches Terms On $271M Staking Horse Bid

    Bankrupt luxury retailer Barneys New York filed a stalking horse agreement late Wednesday in New York court describing a $271 million offer for its assets from an affiliate of Authentic Brands Group.

  • October 17, 2019

    DURA Automotive Files Ch. 11 With Tilton Purchase Offer

    Automotive parts maker DURA Automotive Systems LLC on Thursday filed for Chapter 11 in a Tennessee bankruptcy court with $130 million in debt and plans for a going-concern sale to CEO and majority owner Lynn Tilton.

  • October 16, 2019

    Welded Construction's Ch. 11 Pipeline Suit Stays In Delaware

    Bankrupt pipeline builder Welded Construction LP's suit claiming one of its clients owes $71 million in connection with work Welded did in Pennsylvania on a transcontinental pipeline project will remain in Delaware on a trimmed-down basis, a judge ruled Wednesday.

  • October 16, 2019

    FirstEnergy's Toxic Gas Suit Not Their Problem, Insurers Say

    Two CNA Financial Corp. units asked an Ohio federal court Wednesday to declare they have no duty to defend FirstEnergy Corp. in a lawsuit stemming from the death of two workers in a hydrogen sulfide accident at one of the company's coal-fired power plants.

  • October 16, 2019

    Highland Capital Files Ch. 11 Ahead Of Hearing On $189M Suit

    Embattled hedge fund Highland Capital Management LP filed for Chapter 11 in a Delaware bankruptcy court Wednesday, blaming a $189 million legal claim by disgruntled investors that it had been scheduled to face in court just hours after the filing.

  • October 16, 2019

    Fred's Resolves Creditors' Quibbles With $35M DIP Loan

    Bankrupt discount retailer Fred's Inc. told a Delaware bankruptcy judge that it had reached agreement with unsecured creditors and other parties Wednesday to pave the way for consensual approval of its $35 million post-petition loan on a final basis.

  • October 16, 2019

    Orchids Gets More Time To Work Out Ch. 11 Exec Releases

    A Delaware bankruptcy judge on Wednesday gave Orchids Paper Products Co. a couple more days Wednesday to continue negotiations with unsecured creditors over its Chapter 11 plan releases and how they would affect a vote solicitation package being sent to creditors.

  • October 16, 2019

    Exide Loses Bid To Halt California Penalties Via Ch. 11

    A Delaware bankruptcy judge on Wednesday denied battery maker Exide Technology's bid to bar California from seeking $240,000 in penalties related to environmental remediation efforts that the Golden State says the reorganized debtor has failed to fulfill.

  • October 16, 2019

    Lehman Lost Right To Recoup Bad Loans, Mortgage Cos. Say

    Counsel for some of the mortgage originators facing $1.2 billion in claims from Lehman Brothers for allegedly selling it bad loans told a New York bankruptcy judge Wednesday that the bankrupt investment firm gave up its indemnification rights against them.

Expert Analysis

  • New Data Shows BigLaw's True Profitability

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    Based on an analysis adjusting BigLaw operating income and revenue to account for equity partners and taxes, the profitability of firms is lower than commonly thought, says Madhav Srinivasan at Hunton.

  • Midstream Agreements Can Still 'Run With The Land'

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    Colorado's federal bankruptcy court recently held that a gas gathering and processing agreement and a salt water disposal agreement were "covenants running with the land," and were not extinguished through a bankruptcy sale. The ruling is welcome news for upstream and midstream companies in the oil and gas space, say attorneys at Davis Graham.

  • Opinion

    Courts Keep Rejecting Litigation Funding Discovery Campaign

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    As shown by recent case law, including a New Jersey federal court holding last month in Valsartan Products Liability Litigation, there is no "shifting tide" in favor of disclosing litigation funding arrangements, say Matthew Harrison and Stephanie Southwick of Bentham IMF.

  • How Emotionally Intelligent AI Could Assist With E-Discovery

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    While artificial intelligence has already revolutionized the e-discovery field, the development of emotionally intelligent AI promises to explore data in an even more nuanced and human way, thereby further reducing the burden on legal teams, say Lisa Prowse and Brian Schrader at e-discovery services provider BIA.

  • Preventable Risks Your Law Firm May Be Overlooking

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    Although most lawyers are well-prepared to defend or justify the value of an insurance claim for clients, often law firms have not clearly identified their own potential liabilities, planned for adequate insurance or established prudent internal risk management practices, says Victor Sordillo at Sompo International.

  • 6 Ethics Tips For Attorneys Making Lateral Transfers

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    With lateral transfers between law firms on the rise, it is more important than ever for partners to understand the steps they must take to adhere to ethics rules and other requirements when making a transition, say attorneys at Harris Wiltshire.

  • Consider The Power Of Tactical Empathy

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    By employing tactical empathy techniques to understand the interests behind the positions taken by others, attorneys can gain the upper hand in deal negotiations and litigation while still promoting and preserving long-term relationships with opponents, judges and others, say Shermin Kruse of TEDxYouth@Wrigleyville and Ursula Taylor of Strategic Health.

  • The Problem — And Opportunity — Of Implicit Bias In The Bar

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    Law firms are beginning to recognize implicit bias as a problem. But too few recognize that it is also an opportunity to broaden our thinking and become better legal problem solvers, says Daniel Karon of Karon LLC.

  • Series

    Judging A Book: Thapar Reviews Gorsuch's 'A Republic'

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    U.S. Supreme Court Justice Neil Gorsuch's new book "A Republic, If You Can Keep It" offers hope for our constitutional system through stories of American greatness, and sheds much-needed light on originalism for skeptics, says Sixth Circuit Judge Amul Thapar.

  • Opinion

    True Wellness Requires A Deeper Look At Atty Profession

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    While I applaud all of the law firms that have signed the American Bar Association's campaign to improve attorney well-being, to achieve a truly holistic solution we must ask difficult questions about what we do, how we do it and the expectations we have set for ourselves and our clients, says Edward Shapiro at Much Shelist.

  • Roundup

    Pursuing Wellness

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    In this Expert Analysis series, leaders at some of the law firms that committed to the American Bar Association's 2018 pledge to improve mental health and well-being in the legal industry explain how they put certain elements of the initiative into action.

  • How BigLaw Is Adapting To Plaintiff-Side Litigation

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    While many have treated Kirkland & Ellis' recent creation of a contingency fee-based plaintiffs practice as market disruptive, it is another manifestation of forces that have been changing the business of BigLaw for some time, says Elizabeth Korchin at Therium Capital Management.

  • Series

    Pursuing Wellness: A Focus On Firm Holistic Health Training

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    Our most concerted efforts toward implementing the American Bar Association's well-being pledge, which we signed one year ago, have centered on educating attorneys and staff by including well-being components in firm trainings and professional development programs, says Andrew Glincher at Nixon Peabody.

  • Roundup

    Judging A Book

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    Are the latest books on the judicial system worth reading? Federal judges share their thoughts in this series of book reviews.

  • 10th Circ. Cannabis Ruling Follows Federal Regulation Trend

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    The analytical framework of the Tenth Circuit’s decision in Kenney v. Helix TCS — that cannabis employers are not excused from the Fair Labor Standards Act — may interest courts across the country, as it continues the trend of extending federal law to the cannabis industry in ways that coexist with the Controlled Substances Act, says Aaron Colby of Davis Wright.