Bankruptcy

  • August 11, 2017

    Rakoff Puts $360M Transmar Bank Fraud Case On Fast Track

    Transmar Commodity Group Ltd. CEO Peter G. Johnson, his son and a financial executive at the belly-up New Jersey cocoa distributor denied charges Friday that they engaged in a massive $360 million bank fraud, and Manhattan U.S. District Judge Jed S. Rakoff put the case on track for an April trial.

  • August 11, 2017

    Rajaratnam Fights Galleon Fund Trustee's $135M Fraud Suit

    Convicted insider trader Raj Rajaratnam and two other executives with his defunct hedge fund Galleon Group asked a New York federal judge on Thursday to dismiss a bankruptcy trustee's $135 million fraud case against them, saying the complaint "completely distorts the reality" of the company's wind-down.

  • August 10, 2017

    Breitburn Gets OK To Use DIP Proceeds For Swap Deals

    A New York bankruptcy judge entered an order Wednesday allowing Breitburn Energy Partners LP to enter into swap agreements with its debtor-in-possession lenders and related entities to hedge potential losses from fluctuations in oil and gas prices.

  • August 10, 2017

    Feds' Claim Against Crawfish Importer Can Skip Ch. 11 Stay

    The U.S. government can bypass the automatic stay in Rupari Food Services Inc.’s ongoing bankruptcy and have a $2.8 million judgment entered against the debtor for claims it cheated on customs taxes years ago, the U.S. Court of International Trade ruled Thursday.

  • August 10, 2017

    Trustee For Columbia House Trying To Claw Back Millions

    The liquidating trustee for the parent of onetime music megadistributor Columbia House filed legal actions Wednesday seeking $19 million in clawbacks and suing four former executives for breach of fiduciary duty over an improvident loan.

  • August 10, 2017

    Justices Rescind Grant To Hear Ch. 11 Debt Rebranding Case

    The U.S. Supreme Court said Thursday that it erred in June when it took up a North Carolina bankruptcy dispute over whether debt used to finance the acquisition of a golf and residential real estate development was correctly recharacterized as equity after the original loan was sold to settle a foreclosure.

  • August 10, 2017

    Takata's Japanese Parent Seeks Ch. 15, Litigation Halt

    Takata’s corporate parent in Japan, already under a form of bankruptcy protection in its home country, sought Chapter 15 recognition Thursday in Delaware, opening another front in the company’s quest to halt the firestorm of litigation over defective Takata air bag inflators linked to at least a dozen deaths.

  • August 10, 2017

    Sexual Health Chain Peekay Plans Sale In Del. Ch. 11

    Sexual health and wellness retailer Peekay Acquisition Inc. opened a Chapter 11 sale effort in Delaware early Thursday, reporting $72.6 million in debt and launching its bankruptcy with plans for a stalking-horse-led marketing of the 46-store business.

  • August 9, 2017

    Firm Brings New Antitrust Suit Over Bankruptcy Software Fees

    A suit removed to federal court on Tuesday reveals that law firm McGarry & McGarry LLC is taking another stab at antitrust conspiracy claims regarding fees charged to Chapter 7 trustees, even after the Seventh Circuit and federal courts have recently dismissed similar claims from the firm.

  • August 9, 2017

    Puerto Rico Sales Tax Bond Row On Track For Dec. Resolution

    The federal judge overseeing Puerto Rico’s landmark insolvency proceedings nudged forward a consensual plan to settle a key creditor dispute over liens on the territory’s sales tax revenues before the end of the year, approving the appointment of agents to represent competing bondholders at a hearing Wednesday.

  • August 9, 2017

    EFH Creditors Slam $270M Breakup Fee In $9.1B Berkshire Bid

    A trio of Energy Future Holdings Corp. creditors objected Wednesday to details in a proposed $270 million termination fee if a $9.1 billion sale to Berkshire Hathaway Energy Co. fizzles, with the size of the breakup expense a common target.

  • August 9, 2017

    Takata Confronts Opposition To Bid For Air Bag Suit Freeze

    Bankrupt Takata faced a legion of opposition Wednesday to its bid to halt scores of lawsuits connected to the company's defective air bag inflators, parrying accusations that the idea came from Takata's major automaker customers to shield them from litigation claimants and government agencies.

  • August 9, 2017

    Knight Energy Holdings Files For Ch. 11

    Knight Energy Holdings LLC, an oil and gas tool rental company, filed for Chapter 11 bankruptcy in Louisiana on Tuesday, citing the knock-on effects of stubbornly low petroleum prices and seeking a quick turnaround through a proposed debt-for-equity swap.

  • August 8, 2017

    Fed, FDIC Extend Living Will Deadline For 19 Foreign Banks

    The Federal Reserve Board and Federal Deposit Insurance Corp. on Tuesday extended the deadline for 19 foreign banks and two domestic bank holding companies to file their next round of "living wills" detailing how they can be speedily and safely wound down in the event of a crisis.

  • August 8, 2017

    Nissan To Pay $98M To Exit Takata Air Bag MDL

    Nissan is the latest automaker to settle allegations in multidistrict litigation over defective Takata Corp. air bags, agreeing to a $97.7 million payout, consumers told a Florida federal judge Tuesday.

  • August 8, 2017

    Constellation Creditors Deny Jevic Fit In Ch. 11 Ruling

    Unsecured creditors of Constellation Enterprises LLC urged a federal judge late Monday to reverse a bankruptcy court’s rejection of the company's structured dismissal settlement, saying the decision wrongly relied on the U.S. Supreme Court’s recent Jevic decision.

  • August 8, 2017

    PBGC, Creditors Object To Hospital Laundry Co.'s Ch. 11 Plan

    Unsecured creditors and the Pension Benefit Guaranty Corp. have both objected to Angelica Corp.’s proposed Chapter 11 plan, calling a release-of-liability clause in the medical laundry and linen management company’s plan far too broad to pass muster.

  • August 8, 2017

    Hospital Says 21st Century Ch. 11 Can't Shield Affiliate

    A cancer center in California urged a New York bankruptcy court Monday to block 21st Century Oncology Holdings Inc.'s Chapter 11 litigation stay, arguing that the move would extend protection to an affiliate that isn’t a debtor in the case.

  • August 8, 2017

    Bondholders Sue To Guard Puerto Rico Electric Co. Money

    Bond insurers with interest in most of the $8.3 billion in outstanding bond debt issued by Puerto Rico’s government-owned power company launched a complaint Monday to force the utility to remit pledged funds for debt service, saying the company has failed to honor contractual obligations.

  • August 8, 2017

    Ex-Dewey Partners Urge Leniency For Convicted Former CFO

    Former Dewey & LeBoeuf LLP partners expressed support for a no-jail sentence for former Dewey Chief Financial Officer Joel Sanders in letters filed with a New York court Monday, saying Sanders' actions didn't cause the megafirm's collapse.

Expert Analysis

  • Series

    Notes From A Law Firm Chief Privacy Officer: CPO Vs. CISO

    Mark McCreary

    To understand the role of the law firm chief privacy officer — and why that person ought to be a lawyer — it’s important to distinguish the role they fill from that of the chief information security officer, says Mark McCreary, chief privacy officer for Fox Rothschild LLP.

  • 5 Questions To Ask Before Entering Joint-Representation AFA

    Natalie Hanlon Leh

    One growing trend is for clients to enter into alternative fee arrangements in which one law firm represents multiple parties who “share” fees and costs in a related matter. This way parties can more efficiently manage a matter and reduce their individual legal fees. But joint representation is not without its own risks and challenges, say attorneys with WilmerHale.

  • Legal Incubators Can Help New Lawyers And Society

    Martin Pritikin

    Legal incubators serve as an important bridge to practice and a crucial step toward aligning the incentives of new lawyers with the needs of their clients. They may even pose a threat to the traditional law school model itself, and that's not necessarily a bad thing, says Martin Pritikin, dean of Concord Law School at Kaplan University.

  • Puerto Rico Bondholders Share The Pain

    Wendt_Bradley_CharlesRiver.jpg

    Recent actions by Puerto Rico’s oversight board create a relatively broad band of recovery levels for bondholders. Investor uncertainty will likely persist for the near and medium terms, says Bradley Wendt of Charles River Associates.

  • Mineral Liens Can Be Contractually Waived In Texas

    Brian Mitchell

    The U.S. Bankruptcy Court for the Northern District of Texas recently held that an advance contractual waiver of mineral liens contained in a master service agreement between an oil and gas operator and multiple oilfield service companies was enforceable. The case is likely to influence future drafting and negotiation of master services agreements, say Brian Mitchell and Clark Donat of Bracewell LLP.

  • How To Prioritize Your Law Firm's Crisis Response Plan

    Michelle Samuels

    If the media is going to cover your law firm’s crisis, they are going to cover it with or without your firm’s input. But your involvement can help shape the story and improve your firm’s image in the public eye, says Michelle Samuels, vice president of public relations at Jaffe.

  • Time For Bankruptcy Auctions To Go Online

    Brad Miller

    Complex auctions under the Bankruptcy Code are still often conducted in the traditional manner — live and in person in law offices and courtrooms. An online auction that is designed specifically to meet the needs of all stakeholders is a better approach, say Brad Miller and Margarita Patria of Charles River Associates.

  • Weekly Column

    Innovating For Wise Juries: Closing Argument

    Stephen Susman

    In the final article in this series on proposed innovations to the American jury trial, Stephen Susman, Richard Lorren Jolly and Dr. Roy Futterman of the NYU School of Law Civil Jury Project sum up the improvements they believe the U.S. jury system desperately needs.

  • Oil Producers Cannot Recover From Downstream Purchasers

    Edward Ripley

    The Third Circuit recently affirmed that downstream purchasers took oil purchased from a bankrupt intermediary free and clear of the oil producers’ liens. The opinion is an important reminder that courts will look to the state lien laws and Uniform Commercial Code of a midstream company’s home state to determine whether the producers are secured, say attorneys with King & Spalding LLP.

  • 5 Questions All AFAs Should Answer Clearly

    Gregory Lantier

    While no particular form is required to establish a durable alternative fee arrangement, there are terms that should, for the benefit of both client and outside attorney, be expressly set forth in the agreement itself, but are often overlooked, say attorneys with WilmerHale.