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Bankruptcy

  • September 18, 2018

    NextEra Wants 3rd Circ. To Revisit $275M EFH Breakup Fee

    NextEra, the once-proposed buyer of the assets of Energy Future Holdings Corp., told a Delaware bankruptcy judge Tuesday that it intends to seek a rehearing before the Third Circuit Court of Appeal on its right to a $275 million breakup fee after a three-judge panel denied its appeal last week.

  • September 18, 2018

    Creditors Can't Put Stop To Puerto Rico GDB Restructuring

    A Puerto Rico federal judge denied on Tuesday a motion by unsecured creditors in its government’s bankruptcy proceedings to enforce a stay and prevent a proposed Government Development Bank restructuring, finding that neither the automatic stay nor the court’s stay order applies to moves made by the debtor.

  • September 17, 2018

    Israeli Gov’t Contractor Settles Securities Suit With $3M Deal

    Ability Inc. agreed to pay $3 million to investors to resolve a securities suit accusing the Israeli government contractor of making misleading financial statements during its bid to buy Cambridge Capital Acquisition Corp., according to a deal approved by a New York federal judge on Monday.

  • September 17, 2018

    Rakoff Hits Cocoa Trader With 2.5 Years For $350M Fraud

    A former executive of bankrupt Transmar Commodity Group Ltd. on Monday was sentenced to two and a half years in prison by U.S. District Judge Jed Rakoff for a “massive” $350 million asset fraud at the family-run cocoa commodity trading company.

  • September 17, 2018

    How Lehman's Bankruptcy Put SIPC In The Spotlight

    When Lehman Brothers filed for bankruptcy 10 years ago, one of the first outfits called in was one that traditionally operated under obscurity. But the Securities Investor Protection Corp. made a name for itself in the historic Chapter 11 case, restoring more than $90 billion worth of assets to Lehman’s brokerage customers.

  • September 17, 2018

    Mining Co.’s Involuntary Ch. 7 Draws Judge’s Skepticism

    A Delaware bankruptcy judge on Monday questioned a creditor’s use of an involuntary Chapter 7 action against a mining company that branded the case as an effort to neutralize its Chancery Court lawsuit against the same creditor, cautioning that the bankruptcy court is “not a collection court.”

  • September 17, 2018

    Arizona $3.5M Settlement Approved In Woodbridge Ch. 11

    The Woodbridge Group of Companies received bankruptcy court approval Monday in Delaware to enter into a consent order with Arizona regulators calling for a $3.5 million restitution payment to investors in that state duped into investing in the company’s Ponzi scheme.

  • September 17, 2018

    Claire's Strikes Deal With Oaktree Over Contested Ch. 11

    After several hours of negotiations, Claire's was able to avoid what was likely to be a highly contentious confirmation hearing for the accessory retailer's Chapter 11 restructuring plan after settling with second-lien creditors now set to recover millions more under the plan.

  • September 17, 2018

    Hospitals Fight Blue Cross Blue Shield Bid To Nix ERISA Suit

    Seven affiliated hospitals — five of them bankrupt — have urged a Texas federal judge to spare their Employee Retirement Income Security Act suit claiming that dozens of Blue Cross Blue Shield entities underpaid them by tens of millions of dollars, arguing the Western District of Texas is a proper venue for the litigation.

  • September 17, 2018

    TelexFree Admits Massive Telecom Scam, Securities Abuses

    The scam corporations behind one of the world's largest pyramid schemes, TelexFree Inc. and TelexFree LLC, admitted Monday to securities fraud that federal agents believe swindled more than 1 million people, a move signaling the end of criminal charges and a lawsuit that halted the massive scheme in its tracks in 2014.

  • September 14, 2018

    Oaktree Flags Claire's Modified Ch. 11 Plan

    Oaktree Capital Management LP on Friday objected to the modified Chapter 11 plan of fashion accessory retailer Claire's Inc., claiming last-minute changes significantly impact the amount of claims to be paid and contesting the debtors' call to bar certain evidence at a confirmation hearing set for Monday.

  • September 14, 2018

    Irish Bank Reps Say Ch. 15 Suit Has No American Nexus

    The foreign representatives of Chapter 15 debtor Irish Bank Resolution Corp. Ltd. objected Friday to a move by an Irish creditor to lift the automatic stay of litigation to allow the creditor to move forward with an adversary proceeding in Delaware, saying the loans at issue in the complaint are governed by Irish law.

  • September 14, 2018

    Trustee Of Modi's Jewelry Cos. Starting Ch. 11 Claims Probe

    The recently appointed Chapter 11 trustee of three bankrupt U.S. jewelry companies linked to Indian billionaire Nirav Modi’s massive $2 billion bank fraud has asked for authorization to begin sending out subpoenas while he investigates further.

  • September 14, 2018

    Car Dealer Loses RICO Suit Over Alleged Scam By Employees

    An Illinois federal judge on Friday canned a racketeering suit brought by an auto dealership owner accusing his former business associates of conspiring to run his business into the ground, saying his failure to prove they were part of an enterprise proved "fatal."

  • September 14, 2018

    DOJ Warns Against Fraud In Kaiser Asbestos Trust Plan

    The Department of Justice has filed a statement of interest in the asbestos-centric bankruptcy of Kaiser Gypsum Co., warning that it won't tolerate any continuation of the "fraud, abuse and mismanagement" that have plagued the asbestos trust system in recent years.

  • September 14, 2018

    Actresses Get 'Road Map' To File New Weinstein Class Suit

    Counsel for the actresses accusing Harvey Weinstein of sexual assault in a putative class action say a New York federal judge gave them a “road map” to a stronger case when he dismissed their claims this week.

  • September 14, 2018

    Lehman Judge Looks Back On Historic Case 10 Years Later

    Ten years ago, Lehman Brothers filed the largest bankruptcy in history, an event that accelerated the global financial crisis and inspired a new regime of banking regulation. Judge James Peck spoke with Law360 about the gravity of Lehman's historic filing and how his prior work helped him steward the case. This is the first in a three-part series looking back at Lehman's collapse.

  • September 13, 2018

    Puerto Rico Creditors Blast GDB Deal As It Clears Hurdle

    Puerto Rico’s creditors and its financial oversight board clashed Thursday over the proposed $4.1 billion restructuring of the island’s Government Development Bank, with creditors deriding it as a “home-baked bankruptcy” that would shield corrupt bankers from scrutiny even as the bank’s own creditors overwhelmingly approved the deal.

  • September 13, 2018

    McKinsey Denies Conflicts Of Interest In ANR Ch. 11 Case

    Consulting giant McKinsey & Co. on Wednesday asked a Virginia bankruptcy court to reject calls to reopen the Alpha Natural Resources Chapter 11 case over allegations of conflicts of interest, saying it did not know of the alleged conflicts and would have had no duty to disclose the ties at issue.

  • September 13, 2018

    Green Field Trustee Gets $17M From Ex-CEO In Ch. 11 Suit

    The liquidation trustee of reorganized debtor Green Field Energy Services Inc. will be able to recover nearly $17 million from the former CEO of the company after a Delaware bankruptcy judge decided Wednesday that he is liable for breaching a contract with the company and depriving it of needed financing.

Expert Analysis

  • Q&A

    A Chat With Faegre Client Development Chief Melanie Green

    Melanie Green

    In this monthly series, Amanda Brady of Major Lindsey & Africa interviews management from top law firms about the increasingly competitive business environment. Here we feature Melanie Green, chief client development officer at Faegre Baker Daniels LLP.

  • Equitable Mootness Is Alive And Well In Chapter 9

    Richard Cooper

    Last month's opinion in Bennett v. Jefferson County brings the Eleventh Circuit in line with other courts that have found that the equitable mootness doctrine should apply in Chapter 9. The decision may be particularly relevant in Puerto Rico's ongoing restructuring proceedings, say attorneys with Cleary Gottlieb Steen & Hamilton LLP.

  • Q&A

    Back To School: Widener's Rod Smolla Talks Free Speech

    Rodney Smolla

    In this new series featuring law school luminaries, Widener University Delaware Law School dean Rodney Smolla discusses teaching philosophies, his interest in First Amendment law, and arguing before the U.S. Supreme Court in Virginia v. Black.

  • New Pass-Through Deduction Will Pass Over Many Lawyers

    Evan Morgan

    A few weeks ago, the IRS proposed regulations related to the Tax Cuts and Jobs Act's 20 percent deduction on qualified business income for pass-through entities. The guidance offers long-awaited clarity, but is mostly bad news for many law firms, says Evan Morgan of Kaufman Rossin PA.

  • How Reckless Judicial Impeachments Threaten Rule Of Law

    Jan van Zyl Smit

    Judicial impeachment fever seems to be spreading through the states, with West Virginia legislators recently voting to remove their state's entire Supreme Court, and lawmakers in Pennsylvania and North Carolina threatening the same. These actions are a serious threat to judicial independence, says Jan van Zyl Smit of the Bingham Centre for the Rule of Law.

  • Series

    Judging A Book: Fogel Reviews 'Good Judgment'

    Judge Jeremy Fogel

    In this time of partisan conflict over judicial selection, a new book by Canadian jurist Robert J. Sharpe —​ "Good Judgment" — represents a refreshing, deeply thoughtful departure from binary arguments about how and why judges make decisions, says U.S. District Judge Jeremy Fogel, director of the Federal Judicial Center.

  • 10 Ways To Prevent E-Discovery Woes

    Debbie Reynolds

    E-discovery is not easy, but employing these 10 strategies may help minimize future headaches, say Debbie Reynolds and Daryl Gardner of EimerStahl Discovery Solutions LLC.

  • 11th Circ. Changes Course On New Value Defense

    Paul Avron

    The Eleventh Circuit’s decision this month in Kaye v. Blue Bell Creameries confirms that the prior requirement that new value must remain unpaid is no longer the law in the circuit, wiping out a valuable tool for debtors, trustees and post-confirmation estate representatives for avoiding and recovering preferential transfers, says Paul Avron of Berger Singerman LLP.

  • 4 Key Components To New Firm Partnership Agreements

    Russell Shinsky

    A well-drafted partnership agreement protects a law firm's founders, establishes a process for new and outgoing partners, and sets forth guidelines for navigating conflict along the way. Startup firms can begin with something less complex, but there are important elements that every agreement should include, says Russell Shinsky of Anchin Block & Anchin LLP.

  • Opinion

    Open The Federal Courthouses

    David Oscar Markus

    Forget about cameras, reporters in the Manafort trial were not even permitted in the courtroom with their phones, tablets or computers. That meant no live reporting on Twitter and no emails to the newsrooms with updates. In a world focused on information and news as it happens, this is unacceptable, says trial attorney David Oscar Markus.