Bankruptcy

  • October 11, 2017

    Fla. Energy Biz Partners Trade Barbs At Bankruptcy Trial

    The tension simmering between former partners of a bankrupt Florida energy company repeatedly neared the boiling point Wednesday as a co-founder cross-examined the company's largest investor, who allegedly put the business into involuntary bankruptcy as part of a scheme to force the co-founder out.

  • October 11, 2017

    Patients Fault Cancer Center Over Ch. 11 Plan Info Omissions

    A putative class of 2.2 million patients suing bankrupt cancer treatment center operator 21st Century Oncology over a data breach that exposed their personal information said the company has unacceptably omitted any mention of their claims in its Chapter 11 plan disclosures.

  • October 11, 2017

    ChinaCast, Lenders Slam PE Firm's Insurance Payout Request

    ChinaCast Education Corp. and a group of its senior lenders Wednesday asked a New York bankruptcy judge to deny a creditor a $15 million insurance payout on a securities class action judgment, calling it an improper asset grab.

  • October 11, 2017

    GM Trust Appeals Judge's $1.5B Loan Row Asset Valuations

    A General Motors creditors’ trust on Tuesday asked to appeal a bankruptcy judge’s ruling in a bellwether case on the nature and value of security interests in GM plant assets related to a $1.5 billion term loan, saying that the findings overlook the federal government’s role as savior to the manufacturer in 2009.

  • October 11, 2017

    'American Idol' Parent Says Sony's Royalty Claims Are Barred

    "American Idol" producer CORE Entertainment moved Tuesday to shut down a suit by Sony Music Entertainment over unpaid royalties for Clay Aiken, Kelly Clarkson and other stars of the show, telling a New York bankruptcy court the claims are barred by CORE’s recent reorganization.

  • October 11, 2017

    EU Blesses Portugal's Novo Banco Sale Under State Aid Rules

    The European Commission on Wednesday said it has cleared Portugal’s plan to sell a majority of rescued bank Novo Banco to private equity outfit Lone Star after it found the arrangement did not run afoul of the European Union’s state aid rules.

  • October 11, 2017

    Garden Fresh Says Filing Ch. 11 Plan Would Be Fruitless

    Bankrupt restaurant chain operator Garden Fresh asked the Delaware bankruptcy court Tuesday to dismiss its Chapter 11 cases without a reorganization plan, saying it has no money to make a plan and no assets to reorganize.

  • October 11, 2017

    Trenk DiPasquale Fights Probe Request In Water Agency Suit

    Attorneys from Trenk DiPasquale Della Fera & Sodono PC told a New Jersey bankruptcy court Tuesday that its former client, the now-defunct Newark Watershed Conservation and Development Corp., was not entitled to search the firm’s electronics for missing documents.

  • October 10, 2017

    Partner Says He Tried To Keep Bankrupt Energy Co. Going

    The largest investor in a beleagured Florida energy company testified Tuesday that he tried in good faith to right the business after his partners descended into a deadlocked dispute, contending the only improprieties in the involuntary bankruptcy he forced the company into came in one partner's appeal.

  • October 10, 2017

    Platinum Execs Say Insurers Must Give Cash For Defense

    Attorneys for hedge fund Platinum Partners and some of its executives on Tuesday pressed a New York state judge to force three excess insurers to advance money to cover their costs of defending against criminal charges over a purported $1 billion securities fraud scheme involving an offshore driller, saying the insurers are duty-bound to provide coverage.

  • October 10, 2017

    French Oil Services Co. Gets Nod For Ch. 11 Plan

    French oil services firm CGG received approval from a New York bankruptcy court on Tuesday to implement a Chapter 11 plan designed to restructure nearly $3 billion worth of debt after resolving a last-minute objection raised by the U.S. trustee’s office over executive compensation disclosures.

  • October 10, 2017

    Chinese Co. Drops $160M Suit Against Becker & Poliakoff

    A Chinese real estate investor walked away from a $160 million malpractice suit against its former attorneys at Becker & Poliakoff PA after a Florida federal court hinted at sanctioning the company for failing to produce requested documents.

  • October 10, 2017

    CST Creditors Blast Possible $2.1M Bonuses For Execs

    The unsecured creditors committee in CST Industries Holdings Inc.’s Chapter 11 case took issue Monday with the storage tank maker’s bid to pay executives bonuses court papers indicate could be up to a total of $2.1 million, arguing the brass just received extra pay four months ago.

  • October 10, 2017

    Fee Examiner Appointed In Puerto Rico Utility Restructuring

    The federal judge overseeing Puerto Rico’s bankruptcy-like restructuring process has appointed a fee examiner to review many of the expense and fee requests submitted by attorneys working on the landmark $123 billion case.

  • October 10, 2017

    Chancery Grants $4M In Attys' Fees For $20M TerraForm Deal

    A Delaware Chancery judge on Tuesday approved a $20 million settlement of derivative claims connected to Indian solar project deals made by one of bankrupt SunEdison Inc.’s yieldcos, and awarded the suing shareholder’s side $4 million in attorneys’ fees.

  • October 10, 2017

    Racetrack Co. With Blago Ties Can't Save $21M Coverage Bid

    An Illinois federal judge on Tuesday reiterated that RSUI Indemnity Co. need not defend a bankrupt racetrack operator in a $21 million suit claiming it made money transfers to shareholders despite revelations of its role in a bribery case involving former Illinois Gov. Rod Blagojevich, saying a policy clause specifically excludes such claims.

  • October 10, 2017

    Supreme Court Won't Hear Case On 'Nonsensical' Renco Trial

    Billionaire industrialist Ira Rennert and his Renco Group Inc. will not get to challenge the “nonsensical” trial that led to a $213 million judgment against the pair for allegedly looting a subsidiary before parking it in bankruptcy, after the U.S. Supreme Court on Tuesday refused to hear the case.

  • October 10, 2017

    Dealer Fights Cox Arbitration Bid In Used Car Antitrust Suit

    A bankrupt used car dealership urged a Florida federal court Friday to deny Cox Enterprises Inc.'s motion to compel arbitration or dismiss allegations that the conglomerate monopolized the used car market for financial gain.

  • October 10, 2017

    High Court Won't Hear Ch. 11 Rent Assignment Suit

    The Supreme Court declined Tuesday to review a ruling in which the Sixth Circuit decided that when real estate properties file for Chapter 11, lenders — not the bankruptcy estate — get exclusive dibs on any rent income previously assigned to them.

  • October 10, 2017

    Ex-Dewey CFO Dodges Prison Time For Fraud Scheme

    Former Dewey & LeBoeuf LLP Chief Financial Officer Joel Sanders on Tuesday was sentenced to community service and ordered to pay a $1 million fine following his conviction on fraud and conspiracy charges for what prosecutors say was a scheme to con the firm's financial backers before the firm collapsed.

Expert Analysis

  • 5 Tips To Ensure Proper Deposition Behavior

    Brian McDermott

    If conducted properly, depositions can be a powerful tool. At times, though, opposing counsel employ tactics to impede the examiner’s ability to obtain unfiltered, proper testimony from the deponent. By knowing and effectively using applicable rules and case law, however, deposing attorneys can take specific steps to combat these tactics, say attorneys with Ogletree Deakins Nash Smoak & Stewart PC.

  • How Bankruptcy Can Maximize Health Care Businesses' Value

    Adam Harris

    The consolidation of financially troubled companies can be effectively achieved through the bankruptcy sale process. For health care businesses in particular, bankruptcy sales can maximize the value of these businesses by providing buyers with flexibility and myriad protections, say Adam Harris and James Bentley of Schulte Roth & Zabel LLP.

  • Series

    Judging A Book: Tunheim Reviews 'Miles Lord'

    Chief Judge John Tunheim

    Litigator Roberta Walburn’s rollicking new book, "Miles Lord: The Maverick Judge Who Brought Corporate America to Justice," is a really good read — a fascinating story about a life lived in the heat of battle and usually at the edge of what might have been considered appropriate for a federal judge, says Chief U.S. District Judge John Tunheim of the District of Minnesota.

  • Practical Considerations For Litigating Against SPVs

    Matthew Ingber

    In the wake of the financial crisis, many lawsuits seeking to recover damages for alleged investment losses have been filed by special-purpose vehicles. Litigation practitioners will benefit from a practical consideration of the strengths and weaknesses of these entities in formulating an overall litigation strategy, say attorneys with Mayer Brown LLP.

  • Technology Assisted Review Can Work For Small Cases

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    For as long as e-discovery lawyers have been using technology assisted review, a belief has persisted that it cannot be used economically or effectively in small cases. But TAR can be highly effective in small cases, typically reducing the time and cost of a review project by 60 to 80 percent, say John Tredennick, Thomas Gricks III and Andrew Bye of Catalyst Repository Systems LLC.

  • New Sedona Principles Stress Information Governance

    Saffa Sleet

    The Sedona Conference Working Group's updated Sedona Principles provides a timely reminder that the legal industry needs to be thinking more seriously about the interconnectedness between e-discovery and information governance, says Saffa Sleet of FTI Consulting Inc.

  • Opinion

    For More Value And Diversity In Outside Counsel, Go Small

    Sara Kropf

    Albert Einstein famously said, “The definition of insanity is doing the same thing over and over again, but expecting different results.” That maxim applies to large companies that seek more value and diversity from their outside counsel by expecting big firms to change. There’s a simple solution to this problem, according to attorneys Margaret Cassidy, Sara Kropf and Ellen D. Marcus.

  • Congress Faces 'CHOICE' On Future Of SEC Enforcement

    Thomas Zaccaro

    While most of the Financial CHOICE Act focuses on financial regulations imposed by Dodd-Frank and other federal legislation, portions of the act would have a significant impact on U.S. Securities and Exchange Commission enforcement actions, say attorneys with Paul Hastings LLP.

  • CFPB's 1st 'Abusive' Claim Against A Loan Purchaser

    Kristie Kully

    The Consumer Financial Protection Bureau’s use of its abusiveness authority to attack Aequitas Capital Management’s willingness to acquire loans with high risks of default certainly makes one wonder about the downside risks of the CFPB’s foray into the capital markets, say attorneys with Mayer Brown LLP.

  • Toys R Us Faces Chapter 11 Challenges

    Stephen Selbst

    Toys R Us recently filed for Chapter 11 bankruptcy, citing the impact of e-commerce as a major factor. Other recent retail bankruptcies underscore how difficult it is for retailers to recover from a bankruptcy filing, and creditors must be prepared, says Stephen Selbst of Herrick Feinstein LLP.