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Bankruptcy

  • June 20, 2018

    Gawker Auction Set For July After Stalking Horse Offer OK'd

    A New York bankruptcy judge on Wednesday approved the $1.1 million stalking horse offer and bidding procedures for the Gawker.com domain name and its archive of old stories, clearing the way for an auction scheduled for next month.

  • June 20, 2018

    Westinghouse Moves To Ax $262M In Fluor Contract Claims

    The lawyers tending to the Chapter 11 estate of Westinghouse Electric filed court papers on Tuesday asking a New York bankruptcy judge to reject $262 million in creditor claims by Fluor Enterprises Inc., saying the nuclear project contractor is seeking unearned work fees stemming from canceled agreements.

  • June 20, 2018

    Applebee's Slams Affiliate Fee Escrow Plan In Del. Ch. 11

    Applebee's brand owner Dine Brands Global Inc. objected Wednesday to a bankrupt franchisee’s Delaware court proposal to escrow franchise fees rather than continue routine payments, arguing that restaurants now in Chapter 11 owe the payments for continued national trademark benefits.

  • June 20, 2018

    Think Finance Gets Support On Bid To Dismiss CFPB Suit

    The Native American Financial Services Association and the state of Oklahoma have thrown their support behind Think Finance LLC's bid to shake a Consumer Financial Protection Bureau suit accusing the financial technology company of duping borrowers and using sham tribal payday lenders to collect money it wasn't owed.

  • June 19, 2018

    Zohar Says Independent Director Indemnification Is Critical

    The Zohar Funds bolstered their case in support of a retention agreement for an independent director Tuesday, telling a Delaware court that the person selected to oversee monetization of the bankrupt distressed company investment vehicle's assets should be given protection from litigation in the form of indemnification.

  • June 19, 2018

    Ambac Opens 1st Circ. Fight Over Puerto Rico Bond Diversion

    Ambac Assurance Corp. on Monday launched its opening arguments in an appeal over the diversion of highway bond revenues in Puerto Rico stemming from a ruling in the territory's bankruptcy-type cases, saying the underlying acts by the island's government violated the Constitution.

  • June 19, 2018

    HSBC Loses Stay Protection In China Fishery Ch. 11 Probe

    A New York bankruptcy judge Monday ended a stay on discovery by the trustee overseeing China Fishery Group Ltd.'s Chapter 11 inquiry into HSBC’s debt collection efforts against the company a month after the Second Circuit turned down HSBC’s attempt to stop it.

  • June 19, 2018

    AngioDynamics Seeks Biolitec Patents To Satisfy $75M Award

    Medical technology company AngioDynamics Inc. hit Biolitec AG and its fugitive owner with a lawsuit in Massachusetts federal court seeking to gain control of the company’s patents to satisfy a nearly $75 million judgment that Biolitec has dodged for over four years.

  • June 19, 2018

    Ex-IT Firm CFO To Pay $1.6M In SEC Judgment Over Fraud

    A former executive at an Illinois information technology company has agreed to pay more than $1.6 million to resolve the U.S. Securities and Exchange Commission’s claims he embezzled millions and filed false financial disclosures to cover it up, the commission said in a court filing Tuesday.

  • June 19, 2018

    Bertucci's Says Prepayment Fee Is Not Owed To DIP Lender

    Bankrupt pizza restaurant chain Bertucci’s objected Monday in Delaware to a request by the debtor’s post-petition lender for the payment of a $120,000 prepayment fee, arguing the payment isn’t appropriate because no money was borrowed under the lending facility.

  • June 19, 2018

    US Trustee Challenges Navillus' Ch. 11 Equity Auction

    The federal bankruptcy watchdog on Tuesday blasted construction heavyweight Navillus Tile Inc.’s plan to auction off its equity with a $500,000 opening bid, saying the proposed bidding procedures give too much protection to the stalking horse bidder — who is also Navillus’ CEO.

  • June 19, 2018

    FDIC Gets $4.1M Refund In Ch. 7 Case, 10th Circ. Affirms

    A Tenth Circuit panel sided with a lower court Tuesday, finding the Federal Deposit Insurance Corp., a receiver to a failed Colorado bank — and not its parent company, which filed for bankruptcy — was entitled to a $4.1 million federal tax refund because an ambiguous reading of a tax allocation agreement favored the FDIC.

  • June 19, 2018

    Air Charter Founders Lose Retrial Bid In Fraud Case

    A New Jersey federal judge on Monday denied a new trial to two co-founders of a now-defunct public air charter company who were convicted of looting millions in passenger payments from the company, finding prosecutors proved their case and didn’t impugn their character at trial.

  • June 19, 2018

    No Sanctions For Atty Who Shared Allegedly Confidential Info

    A Pennsylvania federal judge shot down a bid to sanction a McCullough Eisenberg LLC lawyer accused of emailing purportedly confidential deposition excerpts to more than a hundred bankruptcy attorneys as he sought input on a case over KeyBank NA’s debt collection practices.

  • June 19, 2018

    A Chat With Holland & Knight CFO Mia Stutzman

    In this monthly series, legal recruiters at Major Lindsey & Africa interview management from top law firms about navigating an increasingly competitive business environment. Here we feature Mia Stutzman, chief financial officer at Holland & Knight LLP.

  • June 18, 2018

    F-Squared Discovery Delayed In Del. Ch. 11 Trustee Suits

    Citing pivotal, unsettled questions of law, a Delaware bankruptcy judge on Monday postponed mediation and most discovery in a string of extended clawback actions filed by the liquidating trustee for F-Squared Investment Management LLC, pending resolution of dismissal motions.

  • June 18, 2018

    GCs Tackle Law Firm Culture In Diversity Push

    Following an American Bar Association pledge, in-house attorneys are taking a harder line in demanding diversity from their outside counsel, and they're seeking to play a larger role in the workings of the law firms they hire.

  • June 18, 2018

    The Hurdles Facing BigLaw’s Minority Women

    We asked BigLaw for data on female minority lawyers for the first time this year, and the results show an industry that is failing to attract and retain them. Here’s a look at the challenges facing these attorneys — and how a few firms are defying the norm.

  • June 18, 2018

    The Best Firms For Minority Equity Partners

    The legal industry is making sluggish gains when it comes to attracting and retaining attorneys of color, but this select group of firms is taking broader strides to diversify at the top.

  • June 18, 2018

    Talk Radio Networks Ask Judge To Lift Cumulus Ch. 11 Stay

    A group of talk radio content producers appealing the dismissal of an antitrust suit against Cumulus Inc. and others asked a New York bankruptcy judge on Monday to lift the company's Chapter 11 stay to let them file an opening brief to the Ninth Circuit.

Expert Analysis

  • Why Lawyers Shouldn't Accept Fees In Cryptocurrency: Part 1

    John Reed Stark

    Law firms are increasingly accepting cryptocurrency as payment for services. While this might seem innovative and forward-thinking, ironically it is much more of a throwback, says John Reed Stark of John Reed Stark Consulting LLC.

  • A Valuable Precedent On Bankruptcy Vote Designation

    Steven Wilamowsky

    The Ninth Circuit's opinion in Fagerdala represents one of very few circuit-level decisions that touch on vote designation under Section 1126(e) of the Bankruptcy Code — and the severest limit to date upon its application, say Steven Wilamowsky and Laura Appleby of Chapman and Cutler LLP.

  • Impediments To Legal Industry's 'Inevitable' Future: Part 2

    Craig Levinson

    I agree with the legal pundits speculating that NewLaw’s present and future disruptors will radically change the legal services industry, but that change may not come quite as rapidly as predicted. Regardless, now is the time for both the incumbents and the challengers to best position themselves for the eventual shakeup, says Craig Levinson, founder of Levity Partners.

  • Defining A Shareholder's Bankruptcy Veto Power

    Sarah Borders

    The Fifth Circuit's recent decision in Franchise Services of North America should give comfort to investors that seek to negotiate consent rights with respect to a bankruptcy filing. The fact that an investor also holds a claim against the company will not, in and of itself, invalidate a bankruptcy consent provision, say attorneys with King & Spalding LLP.

  • Impediments To Legal Industry's 'Inevitable' Future: Part 1

    Craig Levinson

    Legal pundits continue to make predictions that newer entrants into the industry — NewLaw firms, the Big Four and alternative legal service providers — will progressively seize greater amounts of market share from traditional law firms. But the BigLaw response has been underwhelming at best, and a glimpse at the market forces puts its lack of urgency into perspective, says Craig Levinson, founder of Levity Partners.

  • Establishing Diversity When A Trust Is Involved

    Andrew McClain

    The Third Circuit's opinion in GBForefront v. Forefront Management makes clear that traditional trusts and business trusts are treated differently for purposes of diversity jurisdiction. At the same time, the case begs the question of how to differentiate between a business trust and a traditional trust, says Andrew McClain of Foley & Lardner LLP.

  • The State Of Creditor Recovery Efforts In Venezuela: Part 2

    Richard Cooper

    The next several weeks may shed a great deal of light on how vulnerable Venezuela and its state-owned oil company PDVSA are to creditor collection efforts. Bondholders should also closely monitor developments in the U.S. bribery suit brought by the PDVSA U.S. Litigation Trust, say Richard Cooper and Boaz Morag of Cleary Gottlieb Steen & Hamilton LLP. 

  • The State Of Creditor Recovery Efforts In Venezuela: Part 1

    Richard Cooper

    There is a large pool of creditor claims against Venezuela and its state-owned oil company PDVSA that are not yet in litigation. Until recently, creditors had little incentive to litigate, but that may be changing for two reasons, say Richard Cooper and Boaz Morag of Cleary Gottlieb Steen & Hamilton LLP. 

  • Opinion

    Why Widespread Use Of Live Video Testimony Is Not Justified

    Geoffrey Wyatt

    Despite the partiality some courts have shown to live video testimony, it provides no advantages — and several disadvantages — over the tried-and-true method of videotaped depositions, say attorneys with Skadden Arps Slate Meagher & Flom LLP.

  • Series

    Judging A Book: Wallach Reviews 'Uncivil Warriors'

    Judge Evan Wallach

    "Uncivil Warriors: The Lawyers' Civil War," by Peter Hoffer, is a new book about the involvement of lawyers on both sides in the American Civil War. The discussion is enlightening and often fascinating, but falls short in several key areas, says Federal Circuit Judge Evan Wallach.