Pennsylvania revenue officials lodged a preemptive $3.8 billion tax claim against bankrupt Philadelphia Energy Solutions LLC on Friday, along with an objection to the big refinery’s prepackaged, high-speed Chapter 11 reorganization.
The IRS is pushing back against the $3.6 million clawback suit brought by the bankruptcy trustee of doomed Ponzi vehicle DBSI Inc., telling an Idaho federal court the tax agency is merely a “conduit,” no different from a bank, and therefore immune to this type of avoidance action.
Georgia Power, co-owner of a nuclear power project whose fate has been intertwined with Westinghouse’s bankruptcy, told a New York bankruptcy court on Thursday that proposed Westinghouse reorganization plan language should be revised to reflect that the plant’s owners have dibs on up to $57.5 million sitting in a bank account.
A Texas federal court on Friday refused to toss a suit from three health insurers that claims a law firm failed to pay the companies money out of its clients’ asbestos settlement funds, asking the parties for additional information but saying the suit could remain for now.
Southeastern Grocers LLC, the parent company of supermarket chains including Winn-Dixie and Bi-Lo, announced Thursday that it will be reorganizing in bankruptcy to decrease its overall debts by more than $500 million and will be closing nearly 100 store locations across seven states.
A New York bankruptcy judge on Thursday dismissed a punitive damages claim from a suit over a 2014 car crash involving a Fiat Chrysler vehicle, saying the claim is barred by a 2009 sale order for Old Chrysler after its bankruptcy.
A South Carolina federal judge on Friday dismissed a suit challenging a federal loan repayment demand to a failed Affordable Care Act insurance co-op, saying the Federal Court of Claims has jurisdiction.
In this monthly series, legal recruiting experts at Major Lindsey & Africa interview management from top law firms about navigating an increasingly competitive business environment. Here we feature Durgesh Sharma, CIO at Littler Mendelson PC.
The Department of Justice announced a $66 million settlement with bulletproof vest materials supplier Toyoba Co. Ltd. in Washington, D.C., federal court on Thursday, in a long-running whistleblower suit alleging the Japanese company lied to a government contractor about the durability of its Kevlar-alternative Zylon fibers.
Medical device maker AngioDynamics Inc. hit longtime nemesis and German laser maker Biolitec AG and its executives with a RICO suit Thursday in Massachusetts federal court, alleging the company blatantly exploited legal loopholes for years to avoid paying $145 million in damages and contempt fines.
The abrupt acknowledgement by Toys R Us that it will wind down operations and liquidate inventory at more than 700 stores in the U.S. was met with a wave of concerns Thursday, as creditors' attorneys said they hope for a transparent process that maximizes stakeholder returns.
A New York bankruptcy judge on Thursday said the failure of Weil Gotshal & Manges LLP to disclose it had represented a Breitburn Energy Partners LP lienholder before taking on the company's bankruptcy case was a “fee issue” that could come into play when the firm tries to collect its pay.
Blank Rome LLP has brought on board two New York-based partners from Herrick Feinstein LLP with significant experience handling corporate, finance and real estate matters, the firm announced Thursday.
The collateral manager of the Zohar Funds, the bankrupt distressed-company investment vehicle, asked a Delaware judge to lift the automatic stay of litigation late Wednesday so that an appeal over the ownership rights of their assets could move forward to the state’s high court.
Law360 is pleased to announce the formation of its 2018 Bankruptcy editorial advisory board.
Radio broadcast giant iHeartMedia Inc. filed for bankruptcy in Houston late Wednesday, announcing it has negotiated an agreement in principle with its lenders and other creditors to reduce its balance sheet by more than $10 billion.
A New York federal judge on Wednesday affirmed a bankruptcy court’s dismissal of a Lehman Brothers unit's bid to claw back $1 billion in swaps transactions, saying it correctly determined the safe harbor provision for swap agreements protects the distributions of the collateral.
Two Texas pipeline companies objected Wednesday to confirmation of ExGen Texas Power LLC’s Chapter 11, citing concerns about the creditworthiness of unnamed replacement guarantors for their long-term agreements to fuel four of ExGen’s power plants.
Square Inc. illegally discriminates against bankruptcy attorneys by blocking them from its online payment platform, a member of the bankruptcy bar told the Ninth Circuit at a hearing Wednesday, saying a trial court erred in finding he couldn’t sue because he never signed up for the service.
Bankrupt toy retailer Toys R Us said Wednesday it plans to close all of its 880 U.S. stores and file for liquidation, on the same day its U.K. branch announced it will close all 100 of its locations by the end of April.
Increasingly, when courts impose a “legal hold” they require legal supervision of the preservation process, meaning lawyers must rely heavily on information technology professionals to execute the mechanics. John Tredennick of Catalyst Repository Systems and Alon Israely of TotalDiscovery offer insights on how legal and IT can work together to make the process more efficient and fulfill the company’s legal obligations.
Before the U.S. Supreme Court's decision in Merit Management v. FTI Consulting last week, almost any corporate debtor could file in New York or Delaware and, in structuring a securities buyout, plan to close in escrow through a financial institution and be certain that the buyout was unavoidable. No more, says Charles Tabb of Foley & Lardner LLP.
Foreign representatives have long used Chapter 15 discovery to investigate whether a foreign debtor has assets in the U.S. But two recent cases in New York involving Russian debtors demonstrate the value of Chapter 15 for uncovering assets that were fraudulently transferred, say Rick Antonoff and Evan Zucker of Blank Rome LLP.
Multiple courts have held that discoverable material from negotiations with a litigation funder, when executed properly, can be attorney work product and immune from disclosure in the later litigation. The recent Acceleration Bay decision is indicative of what happens when difficult facts conflict with best practices, says Eric Robinson of Stevens & Lee PC.
Now that crude oil prices appear to have stabilized, previously restructured oil and gas companies are once again looking to increase production and expand their asset bases. Bankruptcy created a competitive advantage for many reorganized entities, while companies that did not file are still in damage control, say attorneys with Jones Day.
Legal leaders who want to meet their clients' expanding expectations should start moving their documents to future-ready document management solutions now if they want to stay competitive in the next few years, says Dan Puterbaugh of Adobe Systems Inc.
While retailers are not predestined to liquidate, unique issues and changing dynamics make them more susceptible to failure. It is essential that retailers, and those that do business with them, understand how to navigate the field, say George Angelich and Phillip Khezri of Arent Fox LLP.
It has been a rough three years in the energy sector. During the downturn, upstream master limited partnerships, large and small, were disproportionately affected. If we have learned anything from this cycle, it is that we should endeavor to structure MLPs to withstand even the harshest price environments, says Jeffery Malonson of King & Spalding LLP.
Texas is home to relatively complex statutory frameworks for liens and bonds used to secure payment for services rendered. Statutory and constitutional liens provide powerful remedies for nonpayment, but only if the proper guidelines are strictly observed, says David Tolin of Cokinos Young in the final part of this article.
The Second Circuit's recent decision affirming the dismissal of UBS from a Madoff case is useful for foreign banks facing U.S. litigation. The decision is a reminder that, for purposes of general personal jurisdiction, corporate structure matters, say attorneys with Orrick Herrington & Sutcliffe LLP.