• March 16, 2018

    Pa. Revenue Agency Asserts $3.8B Tax Claim In PES Ch. 11

    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.

  • March 16, 2018

    IRS Says It's Protected From Trustee's $3.6M Clawback Suit

    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.

  • March 16, 2018

    Ga. Plant Owners Seek Return Of Cash From Westinghouse

    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.

  • March 16, 2018

    Asbestos Firm Must Face Insurers' Coverage Payback Suit

    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.

  • March 16, 2018

    Winn-Dixie, Bi-Lo Parent To File Ch. 11, Close 94 Stores

    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.

  • March 16, 2018

    Chrysler Slips Punitive Damages Claim In Ch. 11 Ruling

    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.

  • March 16, 2018

    Failed ACA Insurer's Suit Tossed Over Jurisdiction

    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.

  • March 16, 2018

    A Chat With Littler Info Chief Durgesh Sharma

    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.

  • March 15, 2018

    Feds Settle Bulletproof Vest Claims With Toyobo For $66M

    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.

  • March 15, 2018

    Bankrupt Laser Co. Hid Assets To Duck Court Judgments: Suit

    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.

  • March 15, 2018

    Toys R Us Creditors Fear Wind-Down Uncertainties

    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.

  • March 15, 2018

    Weil's Breitburn Lienholder Work A 'Fee Issue,' Judge Says

    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.

  • March 15, 2018

    Blank Rome Nabs Finance, RE Attys From Herrick Feinstein

    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.

  • March 15, 2018

    Zohar Manager Tries To Unpause Ownership Rights Appeal

    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.

  • March 15, 2018

    Law360's Bankruptcy Editorial Advisory Board

    Law360 is pleased to announce the formation of its 2018 Bankruptcy editorial advisory board.

  • March 15, 2018

    IHeartMedia Hits Ch. 11 To Cut More Than $10B In Debt

    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.

  • March 14, 2018

    Bankruptcy Court's Block Of $1B Lehman Clawback Upheld

    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.

  • March 14, 2018

    Pipeline Cos. Seek ExGen Texas Ch. 11 Financial Assurance

    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.

  • March 14, 2018

    Square Inc.’s Bankruptcy Atty Ban Is Illegal, 9th Circ. Told

    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.

  • March 14, 2018

    Toys R Us To Liquidate, Close All US Stores

    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.

Expert Analysis

  • 10 Tips For Working With IT To Preserve Data

    John Tredennick

    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.

  • High Court Ruling In FTI Consulting Makes Eminent Sense

    Charles Tabb

    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.

  • A Powerful Tool For Tracing Foreign Assets In US

    Rick Antonoff

    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. 

  • Protecting Privilege In Litigation Financing Negotiations

    Eric Robinson

    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.

  • Lessons Learned From The Oil Patch Blues

    Tom Howley

    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.

  • Why Machine Learning Should Matter To Lawyers

    Dan Puterbaugh

    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.

  • Key Constituents In Retail Bankruptcy: A Shifting Landscape

    George Angelich

    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.

  • Getting Back To Basics With Master Limited Partnerships

    Jeffery Malonson

    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.

  • Understanding Texas Mechanic's Liens And Bonds: Part 3

    Excerpt from Lexis Practice Advisor

    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.

  • 2nd Circ. Raises Bar For US Jurisdiction Over Foreign Banks

    Robert Reznick

    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.